Conseco Inc. is going ahead with a plan to outsource its customer call center and claims processing for older blocks of long term care insurance.

The move, which the company proposed in July, would place administration of a closed block of 170,000 LTC policies under the charge of Long Term Care Group Inc., Eden Prairie, Minn.

Under the agreement, Conseco employees currently performing these back-office functions will become employees of LTCG.

Conseco, Carmel, Ind., says it will keep responsibility for initial claim decisions, appeals, and financial reporting, and its employees now performing these functions will stay with Conseco.

Conseco expects LTCG to assume responsibility for the customer call and continuing claims-processing functions by early 2009, and to shift all policy administration to LTCG systems by 2010.

Conseco says it will keep the affected policies on its books and retain responsibility for all processing functions for LTC policies issued by its Bankers Life and Casualty subsidiary.