5 Ways Baby Boomers Are Changing Long-term Care


Not Purchasing Insurance

Private insurance companies offering long-term care policies are not sure how to deal with the baby boomer generation. Although boomers value the idea of long-term care insurance -- and can usually afford it, they still aren't buying [source: New York Life]. At present, 13 percent of people between the ages of 25 and 70 have long-term care insurance, and only 23 percent more say they plan to buy it, according to one industry survey [source: Merrill Lynch].

Long-term health care services aren't usually included in comprehensive health care plans, which is why a specific long-term care policy is needed.

Since the demand for long-term care insurance increases with age, many companies boost premiums for older applicants to discourage customers from opting in at the last minute and stressing resources. It's suggested that the continual aging of baby boomers has caused some insurance companies to stop selling long-term care insurance altogether [source: Block]. In addition, the influx of aging boomers has resulted in companies becoming more selective in accepting applicants based on their current health and pre-existing conditions, reinforcing the need to apply while in good health at a younger age [source: Medicare.gov].

Even those living with policies worry that the premiums will jump significantly years down the road when they'll actually need long-term care [source: Morrissey].

Private companies aren't the only entities preparing to accommodate baby boomers. Next, find out what the U.S. government is doing.