Long-term care insurance providers in the U.S. are raising premiums and giving policyholders 30 days [2] to accept the new rates.
These sudden price hikes threaten the financial stability of seniors who rely on these policies for future healthcare costs. Because long-term care is often a critical component of retirement planning, abrupt increases can force policyholders to choose between unaffordable premiums or losing their coverage entirely.
Some reports indicate that premiums have doubled [1] for certain policyholders. Other data suggests a broader trend where average premiums are about 40% [3] higher than they were a few years ago. The price gap among the top three insurers also widened in 2025 [5].
Insurers said the in-force rate increases are necessary because of actuarial losses on the original policies [1, 4]. These losses occur when the actual cost of providing care exceeds the projections used to set the initial premiums.
The timing of these notices creates a narrow window for decision-making. Policyholders must determine if they can afford the new costs, or if they need to seek alternative arrangements, within the 30-day [2] timeframe.
The demand for these services remains high as the population ages. Approximately 70% [6] of people turning 65 will require some form of long-term care over their lifetime.
“Premiums have doubled [1] for certain policyholders.”
The current volatility in the long-term care insurance market reflects a systemic miscalculation by insurers regarding the cost of aging populations. As actuarial losses mount, the burden is shifted to the policyholders through sharp rate increases. This creates a precarious situation for retirees who may have paid into these systems for decades only to find the coverage unaffordable at the moment they are most likely to need it.
