The Advisor's View of Long-Term Care Planning

Reaction to LTC Commission Report

Posted by LTCI Partners | Sep 16, 2013 10:19:00 AM

Althought the full report won't come out until September 18, the federal government appointed LTC commission report is getting some feedback to their summary of findings.

First, it's important to point out that the commission recommends a public/private financing mechanism, but that two alternatives are also mentioned. Here is the exact summary on LTC Finance from the commitee:

VISION: A sustainable balance of public and private financing for long-term services and supports (LTSS) that enables individuals with functional limitations to remain in the workforce or in appropriate care settings of their choice. One that 1) provides the tools and protections to enable Americans to comprehend and better prepare for the financial risk of needing LTSS; and 2) ensures that individuals with limited financial resources or for whom the cost of their care exceeds their financial resources have access to needed high-quality services and supports.
Alternative Approaches:
Approach A: Strengthen LTSS financing through private options for financial protection
Approach B: Strengthen LTSS financing through Social Insurance


Politico reports that although the majority of commissioners recommended a public/private approach to LTC financing, several Democratic commitee members wanted the CLASS act or another government insurance program put into place.

Jesse Slome from the AALTCI says, "it is silly to think that an issue as complex as long-term care financing could be resolved, let alone adequately addressed, in such a short time and in such a heated political climate."

Leading Age, the association of nursing facilities, said that : "Any solution must provide a range of choices, promote personal responsibility for planning and saving, and be broadly available to Americans. It is clear that a sustainable balance of public and private financing offers the most potential for tackling this difficult and important issue"

Overall, there is a consensus from most commission participants that a private LTC insurance market is an important part of the financing effort.  Stayed tuned for the full report.

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Written by LTCI Partners

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