Many people are just hearing about LTC Insurance for the first time. However, basic forms of LTC Insurance have been around since the 60's! In the beginning it was modeled after Medicare and it was very difficult to qualify for benefits since the policies only paid for skilled care. By 1981, there were only 8 companies offering LTC Insurance. In 1984, Medicare introduced the DRG's (Diagnostic Related Groups). By then, LTC policies were paying for custodial care. Therefore, the DRG's had a tremendous impact the sales of long-term insurance as people were getting discharged from hospitals quicker, and sicker.

By the year 2000, there were more than 100 companies offering LTC Insurance. Additionally, the Federal Government through the Health Insurance Portability and Accountability Act now endorses and offers tax incentives to purchase it.

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