Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

A Member of the Law Professor Blogs Network

Thursday, March 27, 2014

Could New Alzheimer's Test Kill Long-Term Care Insurance?

Blood_Test_Photo_2

Researchers have developed a simple blood test that is supposed to determine with 90% accuracy whether an individual will develop Alzheimer’s within 2-3 years.

If this test works, it could make early intervention possible and dramatically reduce long-term care costs.  However, this test could have the powerful unintended consequence of making voluntary long-term care insurance almost impossible.  If insurers see positive results from the test, they would either deny coverage or charge much higher premiums.  Even if they are not allowed to see the results, they may still assume buyers know they are likely to contract the disease and raise premiums sharply to account for that, resulting in “the classic insurance death spiral." 

See Howard Gleckman, How a New Alzheimer’s Test Could Kill Long-Term Care Insurance—Or Make It Cheaper, Forbes, March 26, 2014.

http://lawprofessors.typepad.com/trusts_estates_prof/2014/03/could-new-alzheimers-test-kill-long-term-care-insurance.html

Disability Planning - Health Care, Elder Law, Non-Probate Assets | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef01a5118fa410970c

Listed below are links to weblogs that reference Could New Alzheimer's Test Kill Long-Term Care Insurance?:

Comments

Post a comment