“Innovation in the LTC Insurance Market,” by Bruce Stahl, Long Term Care News

Quote:

“Say what you will about long-term care insurance (LTCI) pricing, administration and financial management strategies in the early to mid-1990s, yet you must speak well of the many product ideas insurers implemented at that time. Back then, insurance companies sought to design LTCI products that would satisfy consumer needs and concerns. Nursing home-only policies saw coverage added for adult day care and assisted living facilities, home health care benefits substantially strengthened and benefit period maximums changed to lifetime maximums. Providers also altered the benefit qualification requirement of a three-day prior hospitalization stay to three distinct qualifications: deficiencies in activities of daily living, cognitive impairments or medical necessity. Some even found ways to profitably underwrite applicants with substandard health.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

Thoughtful piece by one who played a part in the developments whereof he speaks. It is important to note that while LTCI made these important improvements, Medicaid, the dominant LTC payor, still retains its institutional bias and continues to crowd out private LTCI, while Medicare, the other major government competitor to private financing, still has its 3-day hospitalization requirement. Author, Bruce Stahl, ASA, MAAA, is SVP and head of U.S. Individual Life at RGA Re. He can be reached at bstahl@rgare.com.