"Long-term care policy" means any group health insurance policy or subscriber contract or certificate, or any amendment, endorsement or rider to any such policy or subscriber contract or certificate that is designed to provide benefits on an expense-incurred basis to a resident of this state. Provided by a certified or licensed health care provider in a setting other than an acute care hospital, for at least one year after a reasonable elimination period for necessary care or treatment of an injury, illness or loss of functional capacity. Insureds are entitled to the benefits of a long-term care policy if they are confined to a nursing home, their own homes, or both. If additional benefits are provided, they must be related to long-term treatment of an injury, illness, or loss of functional capacity. A "long-term care policy" shall not include any policy, contract or certificate that is primarily designed to provide basic Medicare supplement coverage, medical-surgical expense coverage, hospital confinement indemnity coverage, major medical expense coverage, disability income protection coverage, accident-only coverage, specified accident coverage, or limited benefit health coverage. For insurers and state insurance regulators, older issue year policies pose the biggest challenge in LTCI markets. At the time these policies were priced, the LTCI experience used to calculate rates was not fully developed. The initial assumptions regarding the number of policyholders qualifying for LTC benefits and the length of time claimants would remain on claim were understated as experience developed. Additionally, actual policy lapse rates proved to be much lower than initially expected, resulting in a higher insurer exposure to claims payments. Insurance companies have been forced to increase LTCI rates to maintain their solvency due to miscalculations in initial pricing assumptions. LTCI insurers have been able to better price newer issue year policies by analyzing decades of experience generated by older issue year policies. This makes rate increases to those policies less likely and less significant. There has been relatively little theoretical or empirical work on the supply side of long-term care insurance to date. When deciding whether to offer a product, at what price, and with what attributes, insurers consider the potential for adverse selection and moral hazard.
FutureWise Market Research has instantiated a report that provides an intricate analysis of Long Term Care Insurance Market trends that shall affect the overall market growth. Furthermore, it includes detailed information on the graph of profitability, SWOT analysis, market share and regional proliferation of this business. Moreover, the report offers insights on the current stature of prominent market players in the competitive landscape analysis of this market.
According to the research study conducted by FutureWise research analysts, the Long Term Care Insurance Market is anticipated to attain substantial growth by the end of the forecast period. The report explains that this business is predicted to register a noteworthy growth rate over the forecast period. This report provides crucial information pertaining to the total valuation that is presently held by this industry and it also lists the segmentation of the market along with the growth opportunities present across this business vertical.