Many long-term care insurance (LTCI) issuers have been increasing premiums for in-force coverage dramatically.
Some of the LTCI issuers give policyholders a choice between paying higher premiums and accepting benefits cuts.
A team of state insurance regulators wants to shape how the LTCI issuers offer policyholders a choice between premium increases and benefits cuts.
The Long-Term Care Insurance Reduced Benefit Options Subgroup is moving ahead with efforts to set up a framework for that project.
The subgroup is asking for comments on a draft set of Reduced Benefit Option Principles.
The subgroup is also asking for comments on a draft of Reduced Benefit Option Consumer Notices Principles.
- Links to LTCI Reduced Benefit Options Subgroup documents are available here.
- An article about an LTCI trainer’s ideas about what to tell clients about premium increases is available here.
Comments are due Nov. 9.
The LTCI Reduced Benefit Options Subgroup
The LTCI Reduced Benefit Options Subgroup is an arm of the Long-Term Care Insurance Task Force, which, in turn, is part of the Executive Committee at the National Association of Insurance Commissioners (NAIC).
The NAIC is a Kansas City, Missouri-based group for state insurance regulators. The NAIC set up the task force to give high-level attention to what insurance regulators see as serious problems with LTCI issuers.
The task force has three subgroups:
- The Reduced Benefit Options Subgroup.
- The LTCI Financial Solvency Subgroup.
- The LTCI Multistate Rate Review Subgroup.
At press time, the reduced benefit options subgroup was the only one that had document drafts or meeting materials on its section of the NAIC’s website.
Jessica Altman, the Pennsylvania insurance commissioner, is the chair of the reduction benefit options subgroup.