A recent Forbes article examined potential changes in the manner in which individuals pay for long-term care insurance. Currently, most long-term care insurance companies charge flat fees for coverage over a period of several years, followed by big rate hikes. This is referred to as the Annual Rate Sufficiency Model, which has been highly criticized in recent years as driving most long-term care insurance providers out of the business of long-term care coverage.
However, Genworth, the largest single seller of individual long-term care insurance, is proposing an annual rate review that would result in more modest hikes each year. In turn, if Genworth expects to pay out fewer claims in a year, then it could even reduce rates in its annual rate review process. Essentially, long-term care insurance coverage policies would become much more like other insurance policies, such as medical insurance and auto insurance. According to Genworth, pricing long-term care insurance policies in this manner would result in an overall savings for the consumer. In proposing this model, Genworth hopes to attract younger buyers.
Genworth rolled out its new pricing proposal to the National Association of Insurance Commissioners (NAIC) at its annual meeting. While approval by NAIC is likely to take a few years, states have the option of acting more quickly on the proposal if they choose. In fact, Genworth is hoping to have at least a few states on board with its proposal by 2018.
Genworth’s proposal arises largely from a long-term care industry that has suffered greatly in recent years. Roughly 90% of the firms who previously carried long-term care policies no longer do so. Annual sales have decreased from more than 700,000 per year to about 100,000 in 2016. Premiums continue to be steep, which turn off many buyers; instead, buyers tend to seek short-term, lower-cost policies over the significantly more expensive long-term policies.
No matter how you choose to fund your loved one’s long term care, and what type of facility you choose, risks for neglect and abuse still exist. The community based residential facility (CBRF) lawyers of Boller & Vaughan are experienced in ensuring that nursing homes and other elderly care facilities live up to reasonable standards in caring for their residents. When a nursing home or other type of facility fails to do so, and injury to a resident occurs, the facility may be liable for those injuries. We know how to investigate your case, assess your situation and determine whether you or your loved one has any potential claims against nursing home staff or the nursing home itself. Contact Boller & Vaughan today and learn how we can help you through this difficult situation.
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We live in Friendship, Wisconsin, and Boller & Vaughan came to our doorstep to discuss our mother’s wrongful death claim on a Saturday morning. Not only were we pleased with the large recovery, we were so thankful to have lawyers who were willing to explain to us every twist and turn along the way. It is great to know there is a law firm that will fight for the rights of elderly people all over Wisconsin.
Mr. Boller and Ms. Vaughan were incredible in working on my case and my daughter’s case. I was out of work and in the hospital with a new baby. Mr. Boller and Ms. Vaughan protected our rights and it was a pleasure to work with them. I hope never to be in another motor vehicle accident, however, if I am and I am injured, I will contact Boller & Vaughan immediately.
I was referred to Michelle through a friend. I have never had a better experience. It took a little over a year to get my settlement but the staff there stayed in constant contact and kept me in the loop. Oh, and Michelle actually got me MORE money than we discussed. I will refer anyone to this firm. Words cannot do justice the thanks that I have for Michelle and her staff (Mary especially) thank you guys so much!
After my husband died as a result of a motor vehicle accident, Boller & Vaughan spent countless hours talking with me, meeting with me in person, and making sure that I was okay. The drunk driver who hit us did not have any insurance, and we had to make a claim through our own insurance. Boller & Vaughan was fantastic at explaining the law to me and the handling of our claims.
After my son was injured in a daycare setting, Ms. Vaughan took the time to thoroughly investigate our case and my son’s injuries. Michele was approachable and had answers to our questions. Talking with her helped to relieve many of our anxieties.