LONG-TERM CARE INSURANCE Case 3

An average stay is 2.5 and three years which would accumulate to more than $175,000 per stay (Calmus 2013). Home health care is also as expensive as the nursing home considering that the hourly rate increased to $18 and above since 2003. Therefore, if one needs to be assisted for ten hours a day, it translates to $180 in a day. Americans are reluctant in planning for the LTC service causing the government is a key contributor in financing LTC services. The community Living Assistance Services and Support Act (CLASS Act) established the first LTC insurance operated by the government. The Act’s primary goal is to reduce the burden that has befallen Medicaid as far as LTC financing is concerned.