Women can expect to pay 20% to 40% more for long-term care insurance starting in 2014

 

A provision within Obamacare will prevent health insurance companies from charging women higher premiums than men beginning in 2014. However, it doesn’t apply to long-term care insurance. And the country’s largest provider, Genworth Financial, recently said it will start boosting its prices based on gender this spring.

Bonnie Burns, a policy specialist at California Health Advocates, a Medicare advocacy and education organization, stated: "Gender pricing is good for insurance companies. But it’s bad public policy, and it's bad for women."

Genworth says the new pricing reflects the fact that women receive two of every three claims dollars. The change will affect only women who buy new individual policies, or about 10% of all purchasers, according to the company. The new rates won't be applied to existing policyholders or those who apply as a couple with their husbands.

Experts say they expect other long-term-care insurers will soon follow suit. And women’s premiums may increase by 20% 40% under the new pricing policy.

In A Boomer’s Guide to Long-term Care I point out why a woman is at greater risk. And I lay out what to look for when shopping for a policy and offer several ways you can reduce your premium cost. Plus I give you several alternatives to consider if you can’t get insurance or simply find it unaffordable.

Best wishes,

George

P.S. You can download a copy of A Boomer’s Guide to Long-term Care for just $9.95, or order a paperback copy today.