The cost of long-term care, which already strains government and family budgets, is expected to soar in a few decades when the Baby Boomers begin to reach their 80s. Private insurance is often touted as a possible solution to the looming crisis. This brief describes private long-term care insurance and some of the advantages and disadvantages of coverage. Despite ongoing efforts to promote private long-term care insurance, widespread coverage faces a number of significant hurdles, including the affordability of coverage, uncertainty about future premium increases, and the disincentives created by the availability of Medicaid coverage.
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