One company that helps insurers manage blocks of long-term care insurance business has acquired another business in the same market.
LTCG is an Eden Prairie, Minnesota-based company that helps insurers, reinsurers and entities in charge of insolvent insurers administer about 1 million LTCI policies.
Marc Cohen, a Brandeis University faculty member, and three colleagues from Brandeis founded LifePlans in 1987. The ownership team sold the company to Munich Re in 1998.
The Waltham, Massachusetts-based company runs a large network of nurses who understand long-term care and LTCI. The nurses can help with keeping LTCI policyholders healthy and at home, screening claimants, coordinating care, and managing claims.
LifePlans has also published high-profile reports on the state of long-term care services and long-term care insurance.
Cohen left a role chief research and development officer at the company in 2016. He is now a senior advisor at LifePlans and a professor in the gerontology department at the University of Massachusetts Boston.
LTCG was founded in the 1980s by Brandeis University faculty members, including two LifePlans alumni, who had an interest in long-term care. Since 2014, the firm has been controlled by StonePoint Capital, a private equity company.
The company recently won a five-year contract to provide support services for the California Public Employees’ Retirement System.
LTCG says completing the LifePlans deal will add about 2,000 nurses to its nurse network in North America.
LTCG already offers the Minnesota Cognitive Accuity Screen, and the LifePlans deal will help it another cognitive screening tool, the Enhanced Mental Skills test, the company says.
Telephone screenings of insureds, face-to-face visits and use of the cognitive screening tools can help LTCI issuers understand how much claim risk their blocks of LTCI business face, according to LTCG.
Peter Goldstein, the chief executive officer of LTCG, said in a statement about the LifePlans deal that the deal shows the company is committed to the LTCI industry.
“We are making an investment in the future success of our customers,” Goldstein said.
— Read 7 New Peeks at How Long-Term Care Insurance Is Working on ThinkAdvisor.