“LTC insurer offering co-pays to blunt soaring premium increases,” by Greg Iacurci, InvestmentNews

“In an effort to blunt soaring premium increases on its long-term-care insurance policyholders, one insurer is offering policyholders a discount if they agree to a co-pay on claims. John Hancock Life Insurance Co. is trying the new approach. It will start offering the co-pay option to policyholders later this year, which experts believe is a first among long-term care insurers trying to rein in rate increases. The idea is similar to that of a co-pay for medical insurance. For example, a policyholder might elect a co-pay, say 20%, on future claims in return for a lower premium.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform): Seems reasonable. If your premium is going up, you’ve probably had the policy for a while, maybe a long time. Time having passed, you probably have a better idea what your net wealth will be in retirement. If it’s higher than you anticipated previously, it might well make sense to reduce your insurance leverage in order to reduce your premium.