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."
