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."
