A report from LeadingAge contends that current methods for financing long-term services and supports are "unsustainable, irrational and unfair." The report analyzed three approaches to LTSS financing:
- A front-end only benefit that provides coverage relatively early in the period of disability, but caps benefits at two years of LTC need;
- A back-end, "catastrophic-only" benefit with no lifetime limit; and
- A combined comprehensive benefit that began after a 90-day waiting period and provided a lifetime benefit.
The report concluded there was no ideal solution among the approaches studied, but its results showed an urgent need for an LTSS financing system the authors said is "insurance based and guided by the principles of rationality, equity and affordability." LeadingAge believes a mandatory, universal insurance option is the best choice to minimize costs and optimize coverage.