Intermediaries should look at whether they need to reassess insurance coverage for their existing long term care clients following reports of rising nursing home fees.
The Residential Nursing Homes Association’s (RNHA) recent warning that fees may rise by at least £70 will offset free nursing care paid by the Government, leaving pensioners no better off in terms of long term care costs, claim providers.
For most individuals, this will mean that there will be no effect on insurance premiums but experts say that intermediaries may need to revisit their client bank.
The National Pensioners Convention recently entered the debate, saying that there is a vicious circle, with care homes, local Government and central Government blaming each other for the rising costs. It reiterated its calls for free personal care for all.
The RNHA, the trade body representing care homes, is outraged at the Government’s accusations that its members are taking advantage of free nursing care by increasing fees. It argues that many homes cannot even cover their costs and so fees must rise. It says that costs are at least £420 a week per resident while homes get an average of between £340 and £350 a week from the Government and unless it contributes more, fees will have to increase by at least £70 a week.