Private Carriers Cover More Nursing and LTC Costs

By Allison Bell
JANUARY 13, 2012

Commercial carriers’ share of the longer-term care (LTC) and skilled nursing tab was up from 8.9% in 2009 and up from 8.8% in 2000.

Commercial carriers’ share of the tab has increased every year since 2004.
Researchers at the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS) have reported those findings in the latest Government researchers reported those findings in the latest National Health Expenditure Accounts report.

The researchers use the North American Industry Classification System for health care services to create the report, and the classification system does not clearly distinguish between the kinds of spending that private long-term care insurance (LTCI) carriers define as LTC and related types of care, such as skilled nursing services.

When private LTCI plans, private disability plans and other types of health plans other than major medical plans pay providers directly, the researchers usually include those payments in the private health insurance category. In other cases, when the plans may cash benefits directly to the insureds, the researchers put the cash the insureds use to pay for their care in the out-of-pocket expense column.

But the researchers found that total expenditures in their nursing care and continuing care retirement expenditure category increased 3.2% between 2009 and 2010, to $143 billion.

Private carrier spending on that category of services increased 8.2%, to about $13 billion.

Commercial carriers’ share of the longer-term care (LTC) and skilled nursing tab was up from 8.9% in 2009 and up from 8.8% in 2000.

Commercial carriers’ share of the tab has increased every year since 2004.
Researchers at the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS) have reported those findings in the latest Government researchers reported those findings in the latest National Health Expenditure Accounts.

The researchers use the North American Industry Classification System for health care services to create the report, and the researchers do not clearly distinguish between the kinds of spending that private long-term care insurance (LTCI) carriers define as LTC and related types of care, such as skilled nursing services.

Similarly, the researchers do not clearly distinguish between amounts paid by major medical plans, private LTCI plans, private disability insurance plans, and plans that pay cash benefits directly to the insureds, such as critical illness insurance plans.

The researchers do try to include any payments made by LTCI carriers and disability insurers directly to health care providers in the private health insurance payment total.

The researchers found that total expenditures in their nursing care and continuing care retirement expenditure category increased 3.2% between 2009 and 2010, to $143 billion.

Private carriers spending on that category of services increased 8.2%, to about $13 billion.