MedAmerica says it is withdrawing from the long-term care insurance (LTCI) and short-term care insurance (STCI) markets.
MedAmerica — a unit of Lifetime Healthcare Companies Inc. that oversees the Pittsburgh-based MedAmerica Insurance Company, MedAmerica Insurance Company of New York and MedAmerica Insurance Company of Florida — has sent company agents a memo notifying them of the market withdrawal.
Bill Naylon, the company’s president, writes in the letter that the company provides LTCI coverage for about 120,000 people.
MedAmerica first entered the LTCI market in 1988.
“While we believe there is a growing and undeniable social need for financing long-term care, economic circumstances have impacted the entire long-term care industry, as evidenced by a 22 percent decline in 2015 industry sales, according to LIMRA,” Naylon writes. “Unfortunately, these circumstances, particularly the low interest rate environment, have left MedAmerica with no choice but to exit the marketplace.”
The company says in a separate answer sheet that the product discontinuations affect all products the company sells through independent distributors.
In-force LTCI coverage will continue without interruption, and MedAmerica will continue to provide good service, Naylon says.
MedAmerica will terminate producer contracts and state appointments on April 15 in Pennsylvania and on Feb. 15 in other states, Naylon says.
Regardless of the status of producer contracts or appointments, the last day when consumers can sign applications is Feb. 15, Naylon says.