Friday March 12, 1999
*The content of this Bullet comes courtesy of LTC News & Comment*
The Congressional Budget Office projects that private LTC insurance will pay $36.2 billion of the elderly's LTC costs in the year 2020. CBO, basing its projections of work of the Lewin Group and researchers at Duke University, projects that in the year 2010 LTC insurance will pay $11 billion for institutional LTC, and $5.5 for home care. These figures will increase to almost $26 billion for institutional care and over $10 billion for home care in 2020.
Total expenditures for LTC by all payers for both institutional care and home care are projected to be $123 billion in 2000, $160.7 billion in 2010, $207.3 billion in 2020, and $295 billion in 2030.
[Source: "Projections of Long-Term Care Expenditures for the Elderly," CBO, March 1999; www.cbo.gov]
COMMENT: After 10 years of struggling to be recognized as a player in financing LTC, private insurance is now recognized by government as a serious player. Of course, CBO could not predict the effects of severe economic downturns or developments in the marketplace on federal and state Medicaid programs. In addition, as Baby Boomers and their children become accustomed to buying LTC insurance to guarantee quality LTC compared to Medicaid's LTC product, it is reasonable to project that the private sector's share of the total LTC bill will be higher than projected.
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