by Allison Bell August 16, 2021 at 03:42 PM
What You Need to
Know
o
The panel looking at
LTCI wellness programs is the one that normally talks about reduced benefit
option packages.
o
LTCI issuers offer the
RBO packages in place of premium increases.
o
In a draft paper, the
panel says some of the issues wellness programs raise relate to discrimination,
consumer confusion and data privacy.
States
insurance regulators are starting to think about the rules they should set when
long-term care insurance (LTCI) providers add wellness programs for the
insureds.
The
Long-Term Care Insurance Reduced Benefit Options Subgroup, an arm of the
National Association of Insurance Commissioners, has posted a draft LTCI
Wellness Programs Issues discussion paper on its section of the NAIC’s website, under the
Exposure Drafts tab.
Comments
are due Sept. 5.
LTCG,
a company that administers LTCI operations for many LTCI issuers, has been
working with a startup, Assured Allies, to try to get more information about
the insureds’ health and to try to take steps, such as providing hearing aids
and preventing falls, to keep insureds from needing to use their LTCI benefits.
Most
LTCI businesses are under severe pressure because of a combination of the
effects of low interest rates on investment earnings and inaccurate assumptions
the issuers made when they originally designed and priced the products. The
issuers have responded by implementing large premium increases. The NAIC
subgroup thinking about LTCI wellness programs focuses mainly on questions
surrounding the reduced benefit options packages LTCI issuers often offer as an
alternative to a large premium increase.
The
subgroup says in the draft issues paper that LTCI wellness programs raise
questions about fairness, discrimination, consumer confusion and data
privacy.
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