Some regulators want insurers to have a long-term care insurance (LTCI) loss ratio of 100 percent before they raise LTCI rates.
The American Council of Life Insurers (ACLI) and America’s Health Insurance Plans (AHIP) have teamed up to fight the proposal.
The Senior Issues Task Force, part of the National Association of Insurance Commissioners, released a draft of proposed changes to the NAIC’s Long-Term Care Insurance Model Regulation in November.
Members of another part of the NAIC, the Health Actuarial Task Force, later came up with the idea of adding teeth to the model by requiring an insurer to be spending all of its LTCI premiums on claims before it can increase the cost of the coverage.
The minimum loss ratio in the draft released in November was 85 percent.