MassAHU testifies on behalf of LTCi “Standards”

| May 18, 2011 | Comments (0)

Good afternoon Chairman Petruccelli and Chairman Costello and members of the committee.  My name is Tobe Gerard.  I am testifying here today in four capacities: 1) As an owner of an insurance agency specializing exclusively in long term care insurance; 2) As a member of the Massachusetts Association of Long Term Care Insurance; 3) As a member of the National Association of Health Underwriters’ Long Term Care Advisory Committee; and 4) and most importantly as a consumer who is a long term care insurance policyholder.

I speak to you today in support of Senate Bill 411 and House Bill 1201 specifically with regard to the enactment of “Standards” for long term care insurance.

Senate Bill 411 and House Bill 1201 will allow us to join with 46 other states that have already enacted “Standards” for long term care insurance.  Passage of either these important bills will also enhance the role of the Division of Insurance in evaluating rate adequacy and reporting requirements by long term care insurance carriers.

Senate Bill 411 and House Bill 1201 set minimum “Standards” that a long term care insurance product needs to meet to qualify as a long term care insurance policy. 

In addition, passage of either Senate Bill 411 or House Bill 1201 will allow greater regulatory attention to be paid to filings for premium rate increases so that the Commonwealth can move towards a stable long term care insurance market.  Without enacting “Standards” for long term care insurance, existing policyholders in Massachusetts may be priced out of a product they purchased with a great degree of foresight, and prospective buyers may decide not to purchase this important insurance protection.

The reality is that many of us who are here today will live into our 80’s and 90’s and some of us will even live to celebrate our 100th birthday.  When we live a long life, the likelihood of needing extended care increases.  Ask anyone who has lived through someone they love needing care and they will tell you that it is all consuming both physically and emotionally.  Let me add in here that on a personal note my Father is now receiving hospice care.  My sister, who is 54, lives with my Father.  My Father let his long term care insurance policy lapse a number of years ago.  Guess who is now providing my Father’s long term care?

How important is long term care insurance? We’ve recently learned that in 2010 the 10 largest writers of long term care insurance paid out over $10.8 million on a daily basis to long term care insurance policyholders!

We know that long term care insurance has become a key part of the estate and financial plans of many Massachusetts residents.  We also know that without long term care insurance our retirement savings is at risk.

Passage of “Standards” legislation will protect the residents of the Commonwealth who have already purchased long term care insurance, as well as the residents of the Commonwealth who will become long term care insurance policyholders in the

I would respectfully urge this committee to give either Senate Bill 411 or House Bill 1206 FAVORABLE consideration for the reasons stated above

Thank you for your attention to this important issue.

Category: Chapter News, Consumer & Industry News, Legislative Updates, Position Statements

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