Pennsylvania Insurance Commissioner Teresa Miller recently announced a change in Long-Term Care (LTC) Partnership requirements that should help hold down premium increases.
The adjustment allows for greater flexibility in the policy inflation protection that’s required by the federal government.
Long term care partnership policies allow the policyholder to preserve personal assets equal to the amount of insurance benefits paid from the policy. Preserved assets are then disregarded when determining financial eligibility for Medicaid. These policies are also required by federal law to include inflation protection.
The new standard announced by Miller would lower the inflation rate from 3 percent compound to not less than a 1 percent compound annual increase.
The change will likely allow more affordable premiums for consumers and provide more opportunities for agents to discuss this important coverage. Need more good news? We’re focusing even more on LTC options at Ritter and have brought Mike Baker, who has 20+ years of LTC market experience, on board to help agents expand their business. He’ll be able to help you with customized long-term care proposals, policy comparisons, and underwriting pre-qualification review, so just reach out!