Long Term Care

           LONG TERM CARE INSURANCE RATE INCREASES CONTINUE!!!

Recently, Genworth filed a rate increase request with the Maine Bureau of Insurance of up to 233%!

Yes, it is true and the Maine BOI held an open forum on Monday, March 3, 2025, for those affected to voice their concerns, which many did.

It was really heartbreaking to listen to the many stories of how this rate increase, if approved (and most likely will be), will cause great financial hardship and force many to have to drop their coverage.

There was a great deal of anger from those who testified, and rightly so. Many had paid thousands of dollars in premiums for many years and now when they near the time of filing for benefits, the premiums could force them out of the plan, or at the least cause them to lower their benefits in order to pay the increase. Regardless of the choice they make, they LOSE!!

This was the third in a series of forums held over the past several years regarding Long Term Care Insurance rate increases and the basis for the forums is to provide an opportunity for the BOI to hear from Maine policyholders as to how such an outrageous increase will affect their lives. Unfortunately, there is very little that the BOI can do, as they must allow the rate increase if the carrier can show data to support the increase.

As I said before, there is only ONE way to stop the bleeding and that is to legislatively cap the premiums. In 2018, such a bill was presented to the Insurance and Financial Services Committee, LD 1479, which, had it been enacted, the current rate filing would not be approved! That bill, would have capped certain form series at 100%, with those policyholders age 86 and older exempt from any rate correction. Unfortunately, the issue of “solvency” comes into play and the committee voted ONTP (Ought Not to Pass)! I have a whole different take on the solvency issue, which I will cover in a future posting. I believe that there are enough angry policyholders now who will pressure their legislators to do something!

If you are a Long Term Care Insurance policyholder who has been affected by a rate increase, it is important that I hear from you, as we move forward to the next legislative session. I urge you to contact me at your earliest convenience. Together, we can make a difference.

Please contact me regarding this issue at carroll@harperltc.com.

About Long Term Care

“Unlike traditional health insurance, long term care insurance is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization, or other facility. Long term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating. You can select a range or care options and benefits that allow you to get the services you need, where you need them.”

Written by LongTermCare.gov

Reasons Why Long Term Care Insurance is Essential:

1. “You cannot count on the government or your health insurance to pay for your long-term care cost. Medicare will only cover the full cost of custodial care for 20 days. Depending on your condition, it could pay for a maximum of 100 days. Beyond this, you are on your own.
2. You have a high risk of needing long term care in your lifetime, especially if you are a woman. According to the U.S. Department of Health and Human Services, someone turning 65 today has almost a 70% chance of needing some type of long term care assistance, and 1 in 5 will need it for longer than 5 years. By 2050, the number of individuals using paid long term care services in any setting is expected to more than double from the 13 million in 2000 to 27 million people.
3. You cannot afford to wait! It is important to act now while you are in good health as the cost for long term care insurance is highly dependent on your physical condition. Many people believe that buying a policy later in life will help them save on premium costs. In reality, the longer you wait, the more expensive your options become, and the higher your risk of depleting your assets.
4. Reduce your risk of depleting your assets. While many affluent investors can afford to self-insure, transferring the risk to the insurance company and preserving assets for future generations is a stronger long-term investment strategy.
5. In the future, it will not be surprising to see assisted living and nursing home facilities accepting only those who can afford care. As of 2013, there were more than 44.7 million Americans over the age of 65. By 2060, this age group will more than double in size. Given this, there will be an increasing demand for long-term care facilities and we will see longer wait lists and higher costs in the long run. Long term care insurance can provide adequate funding to secure the care you need and where you need it.
6. Help gain peace-of-mind. A long term care insurance policy makes it easy for you to access the best type of care, and it can help to give your family peace-of-mind and the ability to focus on your well-being. In our experience, when there is no long term care policy to rely on, the plan of care chosen is typically the most inexpensive which may not provide you with the level of care that you need. You have options. Long term care policies come in all shapes and sizes and we can help you identify the one that is right for you. It is important that you have a plan in place and ensure that those close to you are informed.”

Written By Carmen I. Bississo