“The market for long-term care insurance, which covers the costs of some in-home health care, has had a rough month. One provider announced that it would not sell any more policies; another is headed toward insolvency, with billions of dollars in liabilities needing to be assumed by someone else.  Yet in the face of this bad news, consumers are being sold newly created long-term care products that are less expensive than the older products that guaranteed monthly payments — and that brought two insurers to a reckoning.  …  Both announcements play into the consumer fear that an insurer won’t be
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“The report found that 57% of high-need survey respondents have trouble with activities of daily living such as eating, bathing and dressing. Of that group, 62% reported that they either rarely or never have someone to help them complete their ADLs. Roughly 75% of high-need respondents who said they did receive help reported that it came from a family member.” LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform): What is the comparative percentage of LTCI insureds who lack help with ADLs?  Low or non-existent I’d wager.  Insufficient or poor care is a function of inadequate financing
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“More than seven in 10 Americans nearing retirement say they are terrified of what health care costs may do to their retirement plans, according to the sixth annual Nationwide Retirement Institute survey conducted by Harris Poll. Nearly three in four older adults say one of their top fears in retirement is out-of-control costs for health care.  …  Among actions that non-retirees are doing now to save for health care costs in retirement: 41 percent are building their savings, 33 percent are paying off credit cards and debt, 28 percent are investing and 27 percent are increasing 401(k) contributions.” LTC Comment
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Important Notice to our North Carolina LTC Distribution Partners and Producers regarding the Discontinuance of Individual LTC Insurance Sales As detailed in our November 10, 2016 Newslink, after a recent analysis of the macro-economic trends facing the long-term care (LTC) insurance industry, we have made the difficult decision to discontinue sales of our individual LTC insurance policies in all states. PLEASE NOTE: In North Carolina, we are discontinuing sales of the policy series ICC14-LTC-15 and ICC14-LTC-15U. As many of you well know, the distribution landscape for LTC insurance has shrunk significantly since the peak of the industry in 2002. Today,
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“In early December, two insurance units of Allentown, Pa.-based Penn Treaty American Corp. that focused on long-term care (LTC) became the latest in a series of LTC insurers to declare failure. Though relatively small carriers, their liabilities were estimated to be dauntingly large” LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform): Article cites Center friend Brian Gordon of corporate member MAGA.  When contemplating Penn Treaty’s fate, it’s important to consider the federal government’s “unsustainably low premiums,” “reckless underwriting standards,” and unfunded liabilities for Social Security, Medicare and Medicaid, somewhat larger and more vulnerable LTC payment sources
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“Boston-based John Hancock Insurance recently increased premiums for most of the federal workers in the Federal Long Term Care Insurance Program by an average of 83 percent.  Federal employees asked Congress to organize a hearing on the rate hike. Democrats took up the cause. Rep. Mark Meadows, R-N.C., the chairman of the Government Operations Subcommittee, part of the House Oversight and Government Affairs Committee, scheduled a hearing on the matter for Nov. 30.  …  Here’s a look at some of the highlights from the hearing, drawn from a video of the hearing posted on the committee website:” LTC Comment (from
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“Two insurance units of Penn Treaty American Corp., which have combined assets of about $600 million and projected long-term-care claims liabilities topping $4 billion, are on track to be liquidated early next year, according to filings in a state court in Harrisburg.” LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform): Long, depressing process playing out finally. Article quotes Chief Actuary Vincent Bodnar of Center corporate member LTCG. Small Insurers’ Big Collapse Reflects Deep Industry Woes Reminder: The Wall Street Journal is gated. #goldencareagent
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“Neurotrack Technologies has announced the unveiling of an app that can conduct Alzheimer’s screenings in as little as five minutes.  Here’s how it works: A browser-based app screens users for signs of cognitive decline based on eye movements as they observe several images. This approach offers a quicker alternative to tests that can take a half hour to complete in a physician’s office, according to the firm.” LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform): Field underwriting tool?   Alzheimer’s screening that takes 5 minutes? #goldencareagent
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