LTCG Releases Its 11th Annual Cost of Care Study

New analysis provides valuable insight for insurers looking to
successfully navigate the dynamic long term care marketplace

EDEN PRAIRIE, Minn.–(BUSINESS WIRE)–LTCG, the leader in business process outsourcing for long term care
(LTC) insurance, has just released its newest Cost of Care Study. This
analysis is based on data collected from surveys distributed to more
than 47,000 providers last year, including nursing homes, assisted
living facilities, home care providers (for both skilled and non-skilled
care) and adult day cares. The annual study provides detailed
information on the cost of LTC services and facilities nationwide,
covering more than 190 Metropolitan Service Areas (MSAs).

This year’s study documents continued cost increases across a variety of
services based on the survey data collected. The national average cost
for home health aides represented the largest increase, jumping 11
percent from 2014 to 2015. In comparison, skilled nursing facilities
rose just 2 percent to approximately $100,000 for a private room

Insurers use LTCG’s Cost of Care Study to empower both producers and
consumers in making decisions about new or existing LTC coverage. This
is especially critical as the industry continues to adapt to new
consumer demands, changing demographics and other market trends. For
example, new hybrid LTC/life insurance plans are increasingly being
introduced by insurers in order to provide greater value to consumers
who may not ultimately require extensive LTC services as they age. Yet
many of the life insurance producers marketing these plans have limited
experience in the LTC market. LTCG’s Cost of Care report provides
guidance that will help these individuals and their customers understand
how much coverage is appropriate based on the policyholder’s needs and
their geographic area. It can also aid policyholders in making decisions
about their existing LTC coverage in order to offset rate actions or
address inflation offers.

According to Stephen Holland, M.D., Chief Medical Officer of LTCG, “We
are constantly adapting the report to reflect recent trends such as the
move to greater utilization of in-home services. From costs associated
with home care provided by registered nurses to daily fees for adult day
care, our study provides a comprehensive picture of the costs associated
with aging safely and comfortably based on the policyholder’s
preferences and clinical needs.”

Since its introduction in 2006, LTCG’s Cost of Care Study has become the
gold standard for LTC pricing in the industry. The 2015 Cost of Care
released in the January 2016 report includes data collected from 5,000
more providers and 41 more MSAs than those in its previous releases. It
is also newly available this year as a traditional report or through an
interactive map and web-based format.

The Cost of Care report is just one of the ways that LTCG drives
improved financial and operational performance for long term care
insurance companies. LTCG also offers end-to-end administrative support
for LTC products, as well as clinical and actuarial services to support
product development and pricing, compliance, underwriting, benefit
eligibility and claims processing functions.

For more information regarding LTCG’s Cost of Care Study please
contact Adam Hoffman at 317-706-8118 or
Or for a web-based demonstration, visit

About LTCG

LTCG is the leading provider of administrative solutions and clinical
services to the long term care insurance industry, with nearly two
decades of experience in this space. LTCG currently manages over 1
million policies and serves more than 50 carriers nationwide. The
company addresses all types of customer needs and policy
requirements—from application processing and underwriting of new
business, to claims and administration of open and closed blocks. LTCG’s
advanced data analytics, actuarial and risk management capabilities, and
unmatched industry expertise can help organizations manage their
business and develop emerging products such as hybrid life/long term
care policies. In addition, LTCG provides clients with unique insight
about risk management built upon the industry’s largest database of long
term care underwriting and claims outcomes. For more information, visit


Adam Hoffman, 317-706-8118