Assemblyman Al Stirpe (D-Cicero) announced that a bill he introduced providing for a long-term care insurance cost study passed the Assembly (A.10711).

“As people age, the need for long-term care increases,” said Stirpe. “A study that reviews the costs of this insurance coverage will give us more information on how to best help New Yorkers plan for future care as well as ensure prices are fair.”

The legislation requires a study and report on the provision of long-term care insurance coverage in New York State to be carried out by the Department of Financial Services. It directs the department to review the actuarial assumptions and methodologies used for setting rates and to look at how New York is handling increases in these costs.

Long-term care insurance covers the costs of personal support and care in either the home or in a hospital or other setting which are not normally covered by health insurance. It is estimated that about 70 percent of people age 65 and older will require long-term care.¹ One year of care in an assisted living facility costs, on average, $36,264.²

Rapidly rising premiums is a major concern for those who purchase long-term care insurance policies. In the past few years, many insurers have raised rates, some doubling them, because they found the original premiums were not sustainable and original prices were based on inaccurate actuarial assumptions. In 2015, the Department of Financial Services approved a roughly 50 percent rate increase to three insurance companies.³

The study of long-term care coverage will help people plan for the future and reduce financial stress. Through better planning, the number of people dependent on Medicare and Medicaid for long term care will also be reduced, helping to lift the burden of their care off of taxpayers, Stirpe noted.

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