Unum Group Corp. (NYSE:UNM) recently dropped out of the group long-term care insurance (LTCI) market, and Prudential Financial Inc. (NYSE:PRU) dropped out of the individual LTCI market.
LTC Financial Partners L.L.C. and EM-Power Services Inc. are fighting the gloom with marketing campaigns.
LTCI Financial, Kirkland, Wash., says it will be offering a beefed-up array of LTCI choices for individuals and employee groups. The company has put out a press release listing eight carriers that are still in the LTCI market and still on its insurer menu.
EM-Power Services, Boston, is promoting its “Bridging the Gap” program, which makes multi-life LTCI programs available at the worksite by using program rules that let carriers screen out employees with serious pre-existing conditions.
Unum, Chattanooga, Tenn., was issuing LTCI policies on a guaranteed-issue basis to companies with as few as 15 employees, according to EM-Power President Doug Ross.
That approach “was not sustainable,” Ross says in a statement.
A guaranteed-issue LTCI program might work for employer groups with several thousand employees, but not for small companies, Ross says.
By allowing for some medical underwriting, the EM-Power program makes managing LTCI benefits program risk easier for employers with fewer than 1,000 employees, Ross says.