Long-term care insurers under fire in Washington

Insurers offering long-term care insurance have come under strong
criticism in the US state of Washington following a meeting between
the state’s insurance commissioner, long-term care insurance
professionals, a representative of Washington nursing homes and
state legislators.

The meeting was called by Senator Chris Marr after several of his
constituents complained that the premiums on long-term care
insurance policies they acquired between ten and 15 years ago are
now so expensive, and the benefits have been reduced to such a
minimal level, that the policies are virtually worthless.

“These people are being forced into a dilemma of either paying
increasing premiums or dropping the policies,” said Marr in a
statement following the meeting. “The worst part is that they’ve
invested so much into these policies and they may be forced to drop
their coverage just when they’re going to need the benefits, which
is what the insurance companies are hoping for.

“The insurance companies make money off of these people’s policy
premiums for years, only to drop them when they become too
expensive, leaving the taxpayers with the responsibility of paying
for their health care. It’s an unacceptable business practice that
gives a black eye to the industry, and we’re not about to sit
around and let it happen.”

Marr was particularly critical of life and health insurer Conseco,
which, he noted, had been awarded 14 increases on long-term care
policies ranging from 10 percent to 25 percent over the past five
years by the insurance commissioner. Conseco, which emerged from
Chapter 11 bankruptcy in 2003, stopped selling long-term care
policies several years ago but still honours existing
policies.

Marr intends forming a task force made up of representatives of the
Washington Health Care Association, the American Association of
Retired Persons, insurance companies and legislators, with an eye
towards making specific recommendations to help resolve issues of
public notification of rate increase requests and opportunities for
consumers to comment.