“Editorial: The feds should let the Genworth deal go forward,” Richmond Times-Dispatch
“Slammed by huge losses in its long-term care insurance business, Henrico-based Genworth has struck a deal with a Chinese company that wants to buy it. But federal regulators are standing in the way.
“China Oceanwide would rely on Genworth’s expertise to build its own insurance portfolio in China. If the Chinese company is allowed to acquire Genworth, it has pledged to inject $1.1 billion into the insurer’s balance sheet. That’s in addition to the approximately $2.7 billion it’s paying to buy the local company.
“If it can’t, Genworth eventually might be forced to shed its long-term care insurance business, leaving even fewer players in the market. That has the potential to shift even more of the cost for long-term care onto taxpayers, through Medicaid.
“So what’s the holdup?”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
What else? The government.
Editorial: The feds should let the Genworth deal go forward