A new study released Thursday by the Jewish Federations of North America’s Strategic Health Resource Center (SHRC) finds a strong and compelling need for a public-private partnership to support the financing of long-term care insurance for older adults.  
 

The average lifetime cost for people who will eventually need significant long-term care is $266,000, greatly exceeding the ability of most families to pay out of their own pocket. With a public-private insurance solution, meaningful coverage can be affordable and enhance the care choices families have, according to the study funded by a grant from Retirement Research Foundation. 

"It is clear that long-term care insurance needs to be affordable, understandable, and enable Americans to cover the financial cost of lengthy periods of services and support. Unfortunately, our current system does not meet any of these criteria, and negotiations over potential solutions continue to languish in Washington, D.C." said Jonathan Schrag, Jewish Federations’ Senior Manager of the SHRC. 

Following several years of study and focus groups with top stakeholders across the country, Jewish Federations releases this report that details the need for Federal Catastrophic Long-Term Care Insurance (FCLTCI), which will enable working people to stay in control of their assets to the end of life by creating affordable options to supplement and support the assistance provided by family and neighbors.

Private long-term care insurance has benefited those who have it, but these products cannot be a broad-based solution. Most families lack disposable income for policies, and only about 10% of adults aged 50 or over have private coverage. Additionally, about 30% of this age group would not meet insurers' underwriting criteria. However, as a companion to a public catastrophic care program, private long-term care insurance could reach a broader population.

 
Based on the study and its findings, the Jewish Federations’ SHRC is proposing the following next steps:   

• Identify and engage with additional stakeholders to build support for long-term care financing reform;
• Improve messaging by focusing on the need for retirement security and tailoring these messages to various stakeholders;
• Conduct public relations and media outreach. SHRC recommends creating or taking advantage of opportunities to give exposure to the concept and the opportunities it presents for a wide variety of stakeholders; 
• Explore “Pay For” options. One of the reasons some stakeholders have been either dismissive or pessimistic about Federal Catastrophic is that they do not see a viable road to legislative sponsorship and passage, given the Executive and Congressional objections to a payroll tax.