LIMRA On Increasing LTC Sales
LIMRAs summer 2001 quarterly report outlines factors that could bolster and hinder the insurance industrys attempts to increase its long-term care insurance market penetration, which currently tracks at less than 10%.
Potential boosters are:
–Better information on how policies are performing for claimants. According to LIMRA, recent surveys show that benefits fall short due to inadequate inflation coverage, reduced home health benefits and an inadequate daily/monthly benefit because the benefit consultation doesnt consider that nursing homes cost an average 20% above room and board for drugs and supplies.
–Attention to the LTCI market from estate planners and group benefit specialists.
–New Medicare prospective payment rules for home health care that provide an incentive to do fewer visits and teach family members to provide care.
–A new credit against mortgage insurance premium when a reverse mortgage is obtained to fund LTC insurance premium.
–New estate recovery legislation that says “undue hardship” wont be granted to people who have transferred their assets to qualify for Medicaid.