“Genworth, the biggest seller of stand-alone long-term care insurance, is about to ask state insurance regulators for permission to fundamentally revise the way it structures premiums. Instead of holding premiums flat for several years followed by big double-digit rate hikes, it wants to be able to revise premiums annually. In this design, unfortunately called the Annual Rate Sufficiency Model, buyers of new policies would likely see modest, single-digit rate hikes each year or two. If Genworth thinks it is likely to pay fewer claims than expected or if investment income is higher than projected, consumers might even see small rate reductions in some years.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
For once, this pro-public-financing, anti-LTCI columnist pens a relatively positive piece on the product. What’s not to like about a solution to the LTCI premium increase problem that enables rate reductions as the economy and interest rates stabilize?

We May Be About To See A Big Change In How Long-Term Care Insurance Is Priced

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