WASHINGTON — The long-term care insurance industry is foundering, and attempts to address the issue have flummoxed lawmakers and regulators.
Long-term care insurance covers assisted living services, nursing homes and treatment for chronic conditions, all of which are vital as the American population ages and as the country contends with the COVID-19 pandemic. Yet the industry is contracting at an alarming rate.
Of the more than 100 companies offering long-term care insurance in 2004, according to the National Association of Insurance Commissioners, just about a dozen still operated in 2019. Fewer new policies are being written, causing companies to increase premiums on new and existing customers, which further dampens demand.
