John Hancock will continue to sell non-Partnership LTCI products in the state after that date, the company says in a notice issued Monday.
A state LTCI Partnership program gives purchasers of qualified LTCI policies a chance to use private LTCI benefits to increase the amount of assets they can keep if, at some point, they exhaust private LTCI benefits and need to draw on Medicaid nursing home benefits.
John Hancock did not say why it is withdrawing from New York’s Partnership market, but it said it made the decision after conducting a thorough analysis of its New York state LTCI business.
To buy New York state Partnership coverage from John Hancock, a consumer must sign an application by April 27 and get the policy to the company’s home office by May 4.
The decision to discontinue new Partnership product sales will not affect service or claim payment for existing policyholders, the company says.
Company representatives were not immediately available to comment on the notice.
A New York state Partnership program report that covers the third quarter of 2014 shows that the other insurers in the state’s program as of Sept. 30, 2014, were Genworth Life Insurance Company of New York, MedAmerica Insurance Company of New York, Massachusetts Mutual Life Insurance Company and New York Life Insurance Company.
See also: New York To Push LTC Insurance.
Consumers have submitted 143,917 applications for New York state Partnership program policies since 1994. The number of Partnership policies purchased increased 23 percent between the third quarter of 2013 and the third quarter of 2014, to 533 in the third quarter of 2014. The average age was 60. The mean deductible period was 87 days. Eighty-five percent purchased 3.5 percent inflation protection, and 15 percent purchased 5 percent inflation protection.