Grassley Hints LTC Woes Could Hurt Partnership Program

“It is reported that there are many overly burdensome obstacles that make it difficult to receive coverage for insurance claims,” Grassley writes. “For instance, the article notes that many long term care policyholders are confronted with draconian policies that deny claims for minute administrative errors such as failing to submit unimportant paperwork, filling out wrong forms after receiving them from the insurance company, and the company failing to recognize an approved facility.”

Grassley implies in his letter that LTC insurance claim problems could affect federal LTC insurance tax breaks and state LTC insurance partnership programs.

Private LTC insurance policies could help reduce the burden of LTC costs on Medicaid and other public health programs, but, “if insurance companies are making it more complicated to recoup claims, this may force seniors into an already financially burdened Medicaid program, thereby increasing program costs,” Grassley writes.

Grassley says in a separate statement about the letter that the purchase of private LTC insurance coverage “has been encouraged through federal tax incentives” and through expansion of the LTC insurance partnership program.

The partnership program permits states to coordinate private LTC insurance benefits with Medicaid nursing home benefits to help insureds who exhaust private LTC insurance benefits save some assets before qualifying for Medicaid nursing home benefits.