“Some LTCI Issuers Count More on Future Rate Hikes Than Others: S&P,” by Allison Bell, ThinkAdvisor

“If state insurance regulators started rejecting too many long-term care insurance (LTCI) rate increase requests, that could cause serious reserving problems for some U.S. LTCI issuers, according to a new report from S&P Global Ratings. … Eight insurers  with large blocks of LTCI policies on their books have assumed, when they set their LTCI reserves, that they will get permission from state insurance regulators to implement future LTCI premium increases with a total value of about $12 billion, according to S&P analyst figures.”

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

Very interesting, but it leaves me wondering about Medicare and Social Security which have no reserves except IOU’s from Uncle Sam and which have asked for no rate increases to back up promised benefits. The only back up for government entitlements is to force next generations to pay.