Witnesses on Thursday at a House Energy and Commerce Oversight and Investigations Subcommittee hearing called on federal lawmakers to require minimum standards for private long-term care insurance policies, CQ HealthBeat reports. Bonnie Burns, a training and policy specialist at California Health Advocates,
said that, because states regulate such policies, the standards offered
differ based on where policyholders live. She said, "It should not
depend on the state a person lives in whether they have a quality
product," adding, "There's a disconnect between those services
available in a community and the way they are described in an insurance
policy, and no two companies have the same definitions."
Some witnesses also raised concerns about large premium increases for long-term care insurance policies. Washington State Insurance Commissioner
Mike Kreidler in written testimony said, "The majority of consumer
complaints my office receives about long-term care insurance are about
the double-digit rate increase they received on products they purchased
in the late '80s and early to mid '90s."
In addition, witnesses
discussed the inconsistencies in denials of claims submitted under
long-term care insurance policies. Burns said that such denials often
appear "completely unpredictable." However, according to Marc Cohen,
president of the long-term care research and consulting firm Life Plans,
a recent survey conducted by the company found that, among 1,500
policyholders who filed claims under long-term care insurance policies,
94% reported no unresolved disagreements with their insurers and that
insurers denied only 4% of those claims (Cooley, CQ HealthBeat, 7/24).
said that, because states regulate such policies, the standards offered
differ based on where policyholders live. She said, "It should not
depend on the state a person lives in whether they have a quality
product," adding, "There's a disconnect between those services
available in a community and the way they are described in an insurance
policy, and no two companies have the same definitions."
Some witnesses also raised concerns about large premium increases for long-term care insurance policies. Washington State Insurance Commissioner
Mike Kreidler in written testimony said, "The majority of consumer
complaints my office receives about long-term care insurance are about
the double-digit rate increase they received on products they purchased
in the late '80s and early to mid '90s."
In addition, witnesses
discussed the inconsistencies in denials of claims submitted under
long-term care insurance policies. Burns said that such denials often
appear "completely unpredictable." However, according to Marc Cohen,
president of the long-term care research and consulting firm Life Plans,
a recent survey conducted by the company found that, among 1,500
policyholders who filed claims under long-term care insurance policies,
94% reported no unresolved disagreements with their insurers and that
insurers denied only 4% of those claims (Cooley, CQ HealthBeat, 7/24).
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