Blue Cross Blue
Shield of Michigan will start a new company that will offer long term
care insurance policies beginning in July 2006 and concentrate on
providing long-term care services to individuals.
The individual policies would include
coverage for assisted living and nursing care but there would be no
group coverage products available.
CHRONIC ILLNESSES CAN BE COVERED BY
LONG TERM CARE INSURANCE
Unlike traditional medical insurance
coverage, long term care coverage helps patients address chronic
illnesses and disabilities that employer policies and Medicare don't
cover. They usually include meals and help with daily activities such
as bathing and getting dressed. This will help protect them as the
average cost of nursing home care is more than $50,000 a year,
according to the AARP.
U.S. Census data suggest that the
population of people 65 and older will double to more than 70 million
by 2030. Meanwhile the average growth in the number of long term care
policies has been 18% a year.
COMPANY WILL GO NATIONAL WITH ITS LONG
TERM CARE INSURANCE
The new company expects to have 12
employees the first year and expects to expand its long term care
business to other states.
Currently, there are about 100
insurance companies, across the nation that sell long term health
insurance products. Blue Cross Blue Shield of Michigan, which provides
health care benefits to 4.7 million members, will be the sole investor
in the newly formed company.
"What you will see, traditionally, is
that there have been several companies that offer such products," said
Mohit Ghose, a spokesman for America's Health Insurance Plans, a
Washington, D.C. based healthcare association representing 1,300 member
insurance companies. "I think more choice for consumers is always a
good thing."
