“Long-Term Care Insurance Benefits Cut Panel Drafts Principles”

Long-Term Care Insurance Benefits Cut Panel Drafts Principles,” by Allison Bell, ThinkAdvisor


“The LTCI Reduced Benefit Options Subgroup is an arm of the Long-Term Care Insurance Task Force, which, in turn, is part of the Executive Committee at the National Association of Insurance Commissioners (NAIC). …The reduced benefit options principles draft includes an introduction that states 17 state insurance departments are involved with shaping the rules for LTCI reduced benefit options.

The five main sections relate to:

  • Fairness for the policyholders that choose the reduced benefit options.
  • Fairness for the policyholders who choose rate increases.
  • Clarity of communications with policyholders who are eligible for reduced benefit options.
  • Efforts to encourage or require LTCI issuers to offer some reduced benefit options.
  • Innovative ideas, such as moves to provide hand railings for LTCI insureds who appear to be at high risk of falling.

The drafters have included a list of five widely established types of reduced benefit options, such as reduced daily benefit levels, and reduced inflation protections.”

LTC Comment:   For better or worse, the government is coming to help.