Health

High Nursing Home Bills Squeeze Insurers, Driving Rates Up

Published

11 years ago

March 24, 2015

In this Feb. 28, 2013, file photo, Tina Reese leads a word game for residents at a nursing home in Lancaster, Pa. Life insurance firms pitched long-term care policies as the prudent way for Americans to shoulder the cost of staying in nursing homes. But those same companies have found that long-term-care policies are squeezing their profits. (AP Photo/Intelligencer Journal, Dan Marschka)

MATTHEW CRAFT, AP Business Writer

NEW YORK (AP) — Thirty years ago, insurance companies had the answer to the soaring cost of caring for the elderly. Plan ahead and buy a policy that will cover your expenses.

Now, there’s a new problem: Even insurers think it’s unaffordable.

Life insurance firms pitched long-term care policies as the prudent way for Americans to shoulder the cost of staying in nursing homes. But those same companies have found that long-term-care policies are squeezing their profits. Earnings for life insurers slid 11 percent in the most recent quarter, according to Moody’s Investors Service, and long-term care was the chief culprit.

“Insurers that sell these products lose money on them,” says Vincent Lui, a life-insurance analyst at Morningstar. “So they’re raising prices and also trying to get out of the business right and left.”

Four of the five largest providers — including Manulife and MetLife — have either scaled back their business or stopped selling new policies, according to Moody’s. The largest provider, Genworth Financial, continues to offer them, yet has struggled under the weight of rising costs.

The trends behind the industry’s troubles sound like good news outside the world of insurance. Older Americans are healthier and living longer. But that makes it difficult for the industry to turn a profit. Stays in nursing homes tend to last longer, so insurers have to pay out more in benefits than they had planned.

For older Americans and their families, however, there are few options besides private insurance. Medicare doesn’t cover nursing home stays except in certain circumstances. The Obama Administration had planned to make a long-term insurance program part of the Affordable Care Act but eventually abandoned it.

Sean Dargan, an analyst at Macquarie Group, an Australia-based investment bank, expects to see more people turning to Medicaid, the government’s health insurance for the poor, to cover the costs of care.

“It could really blow a hole through state budgets,” he says. “I think states and the federal government are going to need to think creatively to find a way out of this.”

For insurance companies, long-term care has proven to be a tough business.

Genworth, based in Richmond, Virginia, has turned in losses for two straight quarters. On March 2, the company reported that it discovered errors in its accounting for funds set aside to cover long-term care claims, knocking its stock down 5 percent in a single day. Analysts say problems with these policies explain why Genworth has lost more than half its market value over the past year, plunging from $17 to a recent $7.79.

“Their single biggest product is long-term care, and look at their share price,” Lui says. “It’s one trouble after another.”

In an interview with The Associated Press, Tom McInerney, Genworth’s CEO, says his company has been taking steps to make long-term care insurance a viable business, raising prices on older policies, introducing new products and throwing out their previous assumptions.

“There’s clearly a very high need for these policies,” McInerney says. “Given high demand and the limited number of insurers offering it today, I think it can be a very good industry going forward.”

When they began selling policies widely in the 1980s, the industry made a slew of assumptions about how long people would live, health care costs, and interest rates. Nearly all of them turned out wrong, analysts say.

Take life spans. At nearly 79 years, overall life expectancy in the U.S. has never been higher, according to the Centers for Disease Control and Prevention. That’s the biggest issue, analysts say, because it means more people who took out policies stick around to make claims, moving into nursing homes and asking insurance companies to help cover the steep bills.

The rate for staying at a nursing home has gone up an average of four percent every year for the last five years, according to Genworth’s annual survey. In 2014, the median bill for a shared room topped $6,000 a month.

“They were making their best estimates at the time. They just turned out to be wrong,” says Shachar Gonen, a Moody’s analyst who covers the industry. “If insurers knew full well what they were getting into, they probably would have priced their policies much higher. So who knows if the long-term insurance business would have ever started.”

The industry’s actuaries also made a bad call on the bond market, betting on much higher interest rates. That misstep proved critical because insurers buy bonds to cushion against future payouts, so years of historically low interest rates have thrown their accounts out of balance. It’s yet another reason why insurers keep putting more money aside to cover claims, resulting in big charges and lower profits.

All of these trends have forced companies like Genworth to spend much more than they had planned. Last year, insurers paid out a record $7.5 billion in claims on these policies, according to the American Association of Long-Term Care Insurance, which tracks insurance rates.

To cope with mounting costs and faulty assumptions, insurers have been cutting benefits and hiking their premiums year after year. Average premiums for new policies rose nearly 9 percent over the past year.

Prices range widely, depending on where you live, your age, level of benefits, and much else. In Tennessee, for instance, a 55-year old woman who is healthy enough to qualify for a policy can expect to pay $2,411 in the first year for $136,000 in benefits. That’s a brand-new policy, likely the lowest premium a person will pay. The expense climbs steadily as people age, and those holding policies typically don’t make a claim until they reach their 80s.

Insurers keep asking state regulators to let them raise prices on existing policies. In the last month, TIAA-CREF Life Insurance, MetLife and American General asked Connecticut’s insurance department for permission to raise rates as much as 22 percent over three years. The state rejected American General’s request and approved the other two.

McInerney, Genworth’s CEO, says that when regulators refuse to allow changes — such as signing off on single-digit rate increases or allowing other tweaks to older policies — the business becomes “‘impossible to run.”

If they’re not flexible enough to help make long-term care insurance viable for insurers, McInerney says he has told regulators that “Genworth isn’t going to stay.”

“Without it,” he adds, “a lot of these Baby Boomers are going to wind up on Medicaid.”

Analysts who follow the industry think that insurers have learned from their missteps and probably figured out the right price to charge for long-term care policies to turn a profit. The problem is, it might be too high for most people to pay.

“I’m of the opinion that it’s appropriately priced today,” says Macquarie Group’s Dargan. “But it’s also out of reach for most middle-income Americans. And that’s who needs it the most.”

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Prostate Cancer is Twice as Likely to Kill Black Men. Talking to Your Doctor Could Help Save Your Life

BLACKPRESSUSA NEWSWIRE — The American Cancer Society recommends that African American men speak with their doctor at age 45 about whether prostate cancer screening is right for them. Men at even higher risk should have that discussion at age 40, especially those with one or more close relatives who were diagnosed at an early age.

Published

8 hours ago

September 10, 2026

Post News Group

Prostate Cancer is Twice as Likely to Kill Black Men. Talking to Your Doctor Could Help Save Your Life

American Cancer Society board member Dr. Robert Winn discusses risk factors for the disease and why too many Black men still aren’t getting screened

September is Prostate Cancer Awareness Month, and as both a Black man and a cancer center director, I know many men in our community think it’s bad luck to talk about cancer. But I’m here to tell you it’s bad luck not to talk about it.

We, Black men in the U.S., are nearly 70% more likely than White men to be diagnosed with prostate cancer. We’re also twice as likely to die from the disease.

But I’m telling you, if you’re diagnosed early, you can still enjoy a long, happy life doing the things you love, whether that’s playing with grandkids or staying active in your community. That’s because although it can become a serious illness, most men diagnosed with prostate cancer won’t die from it.

In fact, more than 3.5 million U.S. men who’ve been diagnosed with prostate cancer are still alive today. And when it’s diagnosed early, you boost your odds of survival. It’s that simple.

Generally, prostate cancer is most likely to develop after age 50, but when it develops in Black men, they tend to be younger. That means we need to be on the ball about understanding our personal risk. The risk factors include a family history of prostate cancer and certain genetic health risks that come from a parent.

When it comes to family medical history, we need to get a lot better at talking. For me, it turned out I had uncles who’d died from prostate and other cancers, but I didn’t always know that, so I couldn’t use that information to help me make smarter screening choices.

The American Cancer Society recommends that African American men speak with their doctor at age 45 about whether prostate cancer screening is right for them. Men at even higher risk should have that discussion at age 40, especially those with one or more close relatives who were diagnosed at an early age.

Look, I get that no one looks forward to a screening, but it typically starts with just a simple blood test, called a prostate-specific antigen, or PSA.

Even if you end up needing a digital rectal exam, it takes less than a minute and could save your life. So, what I say to people is, what’s the price of your life? Isn’t it worth a minute of being uncomfortable?

Brothers, this is essential for you to know: just because you’re feeling good doesn’t mean you don’t have early-stage prostate cancer. By the time you start to actually experience symptoms, the disease could be at an advanced stage and might be harder to treat.”

Prostate cancer is significantly impacting our fathers, our brothers, and our sons. That’s why the American Cancer Society is working with health systems and professionals in your community to help remove barriers in the fight against the disease.

We can help you find low-cost or free screening locations. And for men who need cancer treatment, the American Cancer Society can reduce the financial burden of traveling to medical appointments by providing free rides and, if you live far away from where you receive treatment, a free place to stay.

When it comes to prostate cancer screening, one size doesn’t fit all. So, it’s important for all men – and especially Black men – to talk to their doctor about what’s best for them based on their age, risk, and health history. Please make that appointment, because we don’t want you to risk missing out on the best years of your life.

For more information, call the American Cancer Society’s 24/7 helpline at 1-800-227-2345 or visit cancer.org.

Dr. Robert Winn is a nationally recognized physician-scientist and researcher. He currently serves as cancer center director at Temple Health’s Fox Chase Cancer Center. Since 2021, he has served on the board of directors for the American Cancer Society, a leading cancer-fighting organization with a vision to end cancer as we know it, for everyone.

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Black History

Arnold Perkins: At 85, a Life of Service, Faith and Giving Back

Perkins believes that health is not simply physical. It is emotional, mental, and spiritual. And for much of his life, he says, his faith and philosophy of service have kept him vibrant, happy and connected to the world around him.

Published

2 weeks ago

August 29, 2026

Post News Group

By Tanya Dennis

The Post’s Healthy Aging Series addresses key components for healthy aging: mind, body and spirit. This article addresses the importance of having a strong spiritual or religious foundation.

As America’s population grows older, conversations about healthy aging often focus on diet, exercise and medical care. But for Dr. Arnold Xavier Cornelius Perkins, who will celebrate his 85th birthday next month, another ingredient has been equally important: a spiritual foundation and a lifelong commitment to serving others.

“I am my brothers’ and sisters’ keeper,” Perkins said. “I am a ‘we’ person,” and referenced the South African expression of ‘Ubuntu,’ which means ‘I am because we all are.”

Born in Miami, Florida, Perkins came to California in 1954 with his family to attend a Seventh-day Adventist General Conference. His family ultimately decided to remain in California, unwilling to return to the harsh racism of the segregated South.

He grew up in Berkeley, attending Golden Gate Academy, Willard School, and Berkeley High School before joining the Navy during the Vietnam War era. He later attended Merritt College when the Black Panther Party was emerging in Oakland, where he became involved as a volunteer for the Student Non-Violent Coordinating Committee (SNCC). He graduated from San Francisco State University and completed additional coursework at Cal State East Bay.

His professional career became a remarkable journey through public service. Perkins served as Alameda County’s homeless coordinator, became a program officer with the San Francisco Foundation, headed a drug and alcohol program, and ultimately served as director of the Alameda County Public Health Department for 12 years before retiring in 2006.

But retirement did not mean stepping away from service.

Perkins jokingly describes this stage of his life as being in “preferment,” doing what he pleases. What he pleases, however, is continuing to help people.

He has worked with young people, served on San Quentin Prison’s warden advisory council, previously served on the Oakland Police Department Selection Commission, and completed two terms as chair of the Alameda County Juvenile Justice Delinquency Prevention Commission. He chaired the University of San Francisco’s Helen Diller Stanley Comprehensive Cancer Center for 10 years and is now in his 11th year serving on the California Wellness Foundation board.

Perkins even views a hereditary heart defect through the lens of his spiritual philosophy.

“I have a hole in my heart, so I’m not physically perfect,” he said. “But I look at it as I have a hole because I pour my heart out to people.”

That perspective may be one of his greatest lessons about healthy living. Perkins believes that kindness, compassion and community have a direct impact on a person’s emotional and spiritual well-being.

“If I see an unsheltered relative, I’d give them that $20,” he said. “My responsibility is to take care.”

For Perkins, giving does not deplete a person; it gives life back. “My life’s mission is to give,” he said. “And what I get back is life.”

He knows firsthand that one person can change another person’s destiny. As a young man, Perkins stuttered and often fought in response to the teasing and humiliation he experienced. A teacher, Jeff Tedisco, defended him and changed the direction of his life.

“If it hadn’t been for him,” Perkins said, “I would have been in San Quentin.”

Instead, Perkins now goes to Indaba Court, a restorative justice program, to help young people who have made wrong choices understand that they are part of a larger community.

“When they harm one person, they harm the community,” he said.

His prescription for a vibrant life is simple: be understanding, be kind and remember that life is not all about you.

“When we fold our arms, we can’t receive anything,” Perkins said. “But when we stretch out our arms and serve one another, we build community.”

At nearly 85, Arnold Perkins continues to prove that a life rooted in faith, service and love may be one of the most powerful foundations for healthy aging.

Next Week: Brenda Dennis Harris “The Body Temple.”

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Commentary

NPRC Elder Justice Symposium Invites Community to Join Effort to Protect Alameda County Elders

“Two of our most vulnerable populations are elders and the disabled, and many times that combination resides in one individual,” said Tanya Dennis, lead facilitator of NPRC. “At our symposium, NPRC will bring decision makers and elders together in one space for a day to develop strategy and policy to protect and empower.”

Published

3 weeks ago

August 19, 2026

Post News Group

The National Probate Reform Coalition (NPRC) will host an Elder Justice Symposium on Friday, Sept. 25, from 9 a.m. to 5 p.m. at Oakland City Hall, bringing elders, families, advocates, policymakers and community leaders together to address elder abuse, financial exploitation and problems within probate and conservatorship systems.

The symposium is designed to inform and empower the community while developing strategies and policies to better protect Alameda County’s vulnerable elders and disabled residents.

Dennis said NPRC has drafted proposed legislation intended to make conservatorship a true last resort by adding safeguards before and after a petition is filed. Proposals include mandatory private mediation before entering probate and placement of an ombudsman in probate proceedings to advocate for the rights and interests of prospective or current conservatees.

The coalition also wants stronger protections for elders’ estates and assets, arguing that money accumulated over a lifetime should be preserved for elders, families and intended beneficiaries rather than unnecessarily depleted by court-related expenses.

NPRC meets monthly through Zoom and has expanded into a national coalition because elder abuse, financial exploitation and guardianship and conservatorship concerns extend well beyond Alameda County.

“Members share horror stories of being isolated from their parents and children, many times physically abused and overmedicated; seeing estates drained for court costs, and assets that parents spent decades saving to leave a legacy depleted instead and going to strangers,” said Venus Gist, an NPRC co-facilitator and former victim of the probate system. Gist said she spent more than $80,000 trying to protect her parents’ estate.

“Eighty thousand dollars is nothing compared to the people in our group losing millions and having to sell their businesses and homes to pay court fees,” she said.

The symposium will also examine forms of elder exploitation including telephone scams, bank fraud, identity theft, family financial abuse and exploitation by trusted individuals. Participants will learn to recognize warning signs involving caregivers, financial professionals, health and social service workers, attorneys and guardians.

NPRC is seeking a California lawmaker willing to champion legislation that strengthens elder protections and increases accountability in the conservatorship process.

The symposium follows Supervisor Nate Miley’s 23rd Annual Healthy Living Festival on Thursday, Sept. 24, at the Oakland Zoo. The free event for adults 55 and older will feature health screenings, vaccinations, nearly 100 community resource booths, lunch, entertainment and complimentary zoo admission for eligible attendees.

Dennis said the two events offer a comprehensive two-day focus on elder well-being.

“The health fair will cover the physical care of our elders, and the next day NPRC’s symposium will cover the mental and social health,” Dennis said. “Together, we are offering a comprehensive two days of care for Alameda County elders.”

Both events are free, and advance registration is recommended because space is limited. Community members, elders, families, advocates and public officials are encouraged to participate. Breakfast and lunch will be served at both events.

For registration: Sign-up is required via Supervisor Nate Miley’s Eventbrite page NPRC registration is https://www.eventbrite.com/e/elder-justice-symposium-tickets-1998385423597?aff=oddtdtcreator