Industry Policy Draft Seeks Protection Against More Long-Term Care Insurance Failures

Trade groups are drafting legislation to revise how insurance regulators contend with seniors' claims after their long-term care companies become insolvent, reports Politico Pro . A 2017 analysis determined most commercial long-term care policies are classified as healthcare but are primarily drafted by life insurance firms. The Florida Association of Health Plans (FAHP) is spearheading a measure that it hopes will reach industry consensus, and it says at least 10 other states have passed similar legislation. FAHP's new policy would split the burden to pay claims for insolvent companies relatively equally between healthcare — including HMOs — and life insurance. FAHP CEO Audrey Brown says the measure would more fairly distribute the risk for failed policies while safeguarding consumers who have been paying into them for years. "We know this will be a huge liability in Florida because of our disproportionate share of seniors," she says. "They will need the benefit of long-term care policies. This is aimed at making sure there is enough money to take care of their claims."