John Rundin is outraged that his insurer wants to raise the premium for his long-term care coverage by 60 percent, and he’s convinced that this sharp increase, paired with the company’s admonition about more hikes in future, is a harbinger that long-term care insurance is on its last legs. Consumers around the country have seen steep increases in their premiums on long-term care policies. In a 2016 survey, the consulting firm Milliman found that regulators approved rate increases of 40 percent or more on about half the requests that insurers made. A little more than a quarter of their requests…
Elder law attorneys serve as advocates for elderly or disabled clients and their families, providing counsel on a wide range of topics including health care, guardianship, and estate planning. Though it may seem that elder law attorneys are meant to handle extreme or unusual cases, everyone can benefit from the services of an elder law attorney. Here are four things an elder law attorney can do for you: Estate Planning Making sure your affairs are in order is essential, and having an experienced elder law attorney to guide you through the process makes everything easier. Because there are strict guidelines…
A long-term care insurance company recently cancelled the insurance coverage of an elderly woman who accidentally wrote the wrong amount on her premium check. The case illustrates the need for policyholders to pay attention to the details. Madeleine Maldonado, of Concord, Massachusetts, had a long-term care insurance policy through AIG. According to an article in the Boston Globe, when Ms. Maldonado wrote a check to pay her $3,399.91 long-term care insurance premium, she put down the correct amount in the number box, but she accidently wrote out “three thousand three hundred and 99/100 dollars.” Under banking and finance rules, if…
Virginia regulators are encouraging long-term care insurance policyholders to take advantage of changes that strengthen protections against unintentional coverage lapses due to nonpayment. The Bureau of Insurance of the State Corporation Commission says insurers have long been required to provide policyholders with the option to designate a third party to receive notice of an impending policy lapse. But officials say the verification of delivery of such notice has been strengthened with recent regulatory revisions. Starting in 2015, long-term care insurers will be required to retain written receipt evidencing mailing of the notice to the designated individuals for at least three…
As baby boomers age, families have more options for providing and paying for their care. Much has changed in the past two decades when it comes to long-term care options and how to fund them. Baby boomers and subsequent generations will need to plan for long-term care in a different way than their parents in light of factors such as longer life spans, the uncertain future of entitlement benefits, and rapidly rising medical costs. Choices when it comes to planning for long-term care include earmarking savings for long-term medical expenses, relying on entitlement benefits, or depending on their families. Long-term…
The costs of long term care are increasing every year, but most families do not understand what they will be confronting when it is their time to start paying for care. Too many people wait until they are in the midst of a crisis situation before they start trying to figure out how the world of long term care works. Long term care is a very expensive proposition. Families can go broke trying to provide for a loved one. New approaches to fund long term care must be encouraged, and converting life insurance policies into a Long Term Care…
One of the most difficult decisions in long-term care planning is whether to purchase long-term care insurance (LTCI) and which of the wide variety of products to purchase. On the one hand LTCI premiums are high, they may be raised in the future, and if you are purchasing policies in your 50s and 60s, the need is probably many decades in the future. On the other, many are saved by their LTCI, able to choose their own care setting rather than rely on what is covered by Medicaid in their state, more comfortable hiring necessary help if doing so doesn’t…
A major Chicago-based long-term care insurer is being sued by an elderly group policyholder who says the company “abruptly” changed its policy and began denying her claims for assisted living care, according to Courthouse News Service. The company, CNA, provides group long-term care insurance and initially sought to hike premiums for a certain group of seniors by 45% in Connecticut, where lead plaintiff Marie Gardner, age 91, lives. The state ultimately approved a 30% premium increase for Gardner’s group. “Defendants have engaged in an illegal course of conduct designed to reduce its exposure to costly long-term care claims by denying…
Poor results in the long-term care insurance sector have led many providers to exit the market, leaving its future uncertain, Moody’s Investors Service says in a new report. The report, “Long-Term Care Insurance: Sector Profile,” says that despite the need for non-medical coverage by an aging population, the product’s future is also in question because of persistent losses and a challenging operating environment. “Key credit considerations for the sector are the relative newness of long-term care insurance and the long-tailed and complex product structure, which make it difficult to price the product profitably and to reserve for,” says Laura Bazer,…
Americans are living longer, so debilitating diseases such as Parkinson’s and Alzheimer’s are rising, making long-term care vital. Long-term care insurance offered those facing retirement a new option to offset the cost of assistance that many require later in life. From daily tasks such as cooking and cleaning to the all-encompassing care provided in nursing homes or assisted-living facilities, long-term care insurance covers many of the expenses that health insurance, Medicare or Medicaid generally don’t. According to the Centers for Medicare and Medicaid Services, about 60 percent of individuals over age 65 will require at least some type of long-term…
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