Wednesday, March 28, 2007

NYT article on long term care insurance problems creates a firestorm

On Monday, the New York Times published an article this week on the long term care industry--specifically, policy issuers' refusal to pay benefits when owners go into long term care.  Those of us who have studied long term care insurance have lonog been aware of this issue, but promoters of LTCI, including the authors of the Deficit Reduction Act of 2005, have ignored the problem and have continued to support private LTCI as a solution to the nation's coming need for a rational system of financing long term care for the elderly.  I received numerous suggestions to post the article.  The article has also generated a firestorm of criticism of the industry and calls in the Congress for investigations.  Here's a small sample of reactions nationwide:

Klobuchar calls for insurance investigation
http://www.startribune.com/587/story/1083733.html

Leading Industry Critic Charges Long-Term Care Insurance Carriers With Bad Faith / Racketeering http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/03-28-2007/0004555010&EDATE=

Senator Clinton Calls for GAO Investigation of Impact of Widespread Insurance Claims Denials for Long Term Care, http://www.allamericanpatriots.com/m-news+article+storyid-21784.html

A new insurance worry
http://www.palmbeachpost.com/opinion/content/opinion/epaper/2007/03/28/a12a_longterm_edit_0328.html

http://lawprofessors.typepad.com/elder_law/2007/03/nyt_article_on_.html

Health Care/Long Term Care | Permalink

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