Nursing home insurance cost is increasing for long term care provision, in some cases by as much as 39%. There was little increase in these premiums over the last 15 years, but suddenly they have begun to spike. Insurance companies like MetLife have convinced state regulators that the hikes are warranted, but many consumers remain skeptical.
The rate hikes are impacting seniors throughout the state of Connecticut, which is already the most expensive state in the US in terms of nursing home care. The insurance companies had requested even higher rates than what was eventually approved by regulators. The underlying reason for the rate hikes now is that the cost of long term care is spiking, and a cost-shift means that Medicaid no longer covers the full cost of nursing home care.