Boomer Misconceptions on Long Term Care

Jenna Kozen at Edelman sent along a presentation about a nationwide survey conducted by America’s Health Insurance Plans (AHIP) on the misconceptions of long term care coverage and services by Baby Boomers. AHIP is a national trade association that represents 1300 insurance companies and their presentation was interesting in that it showed some very common misconceptions.

Here were their key findings after talking to around 2,000 boomers:

  • One in four Baby Boomers erroneously believe that they have coverage for long-term care expenses. According to the National Association of Insurance Commissioners, at most about 5 percent of Baby Boomers are covered.
  • 54 percent of Baby Boomers think Medicare will pay for long-term care services. Forty-four percent believe “other health insurance” will pay. Even half of those who say they have long-term care insurance believe Medicare will pay for the care. Medicare doesn’t cover long-term care indefinitely, Medicaid will cover these services, but only after requiring individuals to spend down nearly all of their assets to qualify for assistance.
  • Even among Baby Boomers nearing or at the age of 60 ? when concerns about the potential impact of long-term care on retirement savings might be most prominent in their minds ? only one in four say they are “very familiar” with long-term care insurance. In addition, 41 percent say they have not had any discussions about long-term care in the past twelve months.

Check out the presentation and make sure you’re not one of the folks who is misinformed.