New Survey Finds 1 in 4 Baby Boomers - Erroneously Believe They Have LTCI Coverage

One in 4 baby boomers erroneously believe they have coverage for long term care expenses, according to new survey data released by America's Health Insurance Plans (AHIP). The survey also found that many baby boomers have misconceptions about who pays for long term care services, and they have not thought about purchasing long term care insurance.

"This should be a wake-up call to baby boomers. They aren't factoring expenses for long term care into their retirement planning and are missing an opportunity to protect themselves," said Karen Ignagni, president and CEO of AHIP.

The data reflect preliminary findings from ongoing survey and focus group research that examines baby boomers' awareness of long term care insurance, conducted for AHIP by StrategyOne. Specifically, the survey found:
o Most baby boomers have not focused on planning for long term care expenses. The new survey shows that 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 1 in 4 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 12 months.

o Thirty percent of baby boomers think they have long term care coverage, but according to the National Association of Insurance Commissioners, only about 5.2 million Americans own such coverage. Even if all those covered were baby boomers, which they are not, that would only account for 6.6 percent of the baby boomer population. This means that 25 percent of baby boomers erroneously think they are covered for long term care expenses.

o The majority of baby boomers think Medicare or other health insurance will pay for their long term care. The survey shows that 54 percent of baby boomers think Medicare will pay for their long term care services. Forty-four percent believe that other health insurance will pay. Even half of those who say they have long term care insurance believe Medicare will pay for the care.