Malcolm Cheung Prudential Vice President of Long-Term Care Product and Risk Management
What significant changes have affected the long-term care category since we visited a year ago?
One is the Obama Administration’s decision not to implement the Community Living Assistance Services and Support Act as part of health-care reform. In announcing the decision, Health and Human Services Secretary Kathleen Sebelius stated that “by 2020, we know that an estimated 15 million Americans will need some kind of long-term care and fewer than three percent have a long-term care policy.” With the clear need for long-term care insurance coverage and no viable federal program for most Americans, the burden rests squarely on private insurers to continue to educate and on the American public to take action.
I’m happy to say that the work the industry has done to educate consumers about the importance of planning seems to be resonating. We’re continuing to see the market expand and individual long-term care insurance sales increasing across the board. This is a continuation of the positive trend that started in the beginning of 2010.
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How would you describe the impact of the 3 in 4 Need More campaign?
For years, insurers have been doing their best to educate the public about long-term care planning. However, 3in4 Need More represents the first time that distributors and insurers have gotten behind a well-organized, concerted effort to provide greater awareness and education about LTC planning. In many ways, this is the “Got Milk” campaign of the LTC world. And it’s not just the LTC industry that is on board, as we’ve seen participation, sponsorship and support from outside the industry as well.