IFA Care is urging the industry to design dementia-only policies to bridge the gap in the Government's funding proposals which outline what long-term care costs it will meet.
People suffering from dementia may have to foot the bill for their care because the Government's funding proposals do not cover the condition.
The Alzheimer's Society says the lack of funding for dementia is a major concern and it is campaigning for the Government to change its mind.
IFA Care chairman Graham Fidoe says: “This is one of our major concerns because it would cover a large number of clients who suffer from dementia.
This is extremely serious. We could see providers coming out with dementia-only policies to cover this area.”
The Government proposes paying for nursing care but not personal care for people living in residential homes.
It has yet to define what nursing care is, which has left the industry unsure how to design LTC products.
A Department of Health spokeswoman says people will be subject to an assessment when they enter a home to determine how much of their care costs will be paid by the Government.
Dementia is a broad term covering Alzheimer's Disease and other degenerative diseases affecting the brain.
Alzheimer's Society campaigns officer Ruth Berry says: “People with Alzheimer's are really going to miss out because they quite often suffer from a slow and steady decline rather than a sudden decline in health.”