Test Your Knowledge About Long-Term Care with AARP’s Long-Term Care Quiz

Reply
Valued Social Butterfly
Posts: 8,624
Registered: ‎08-18-2008

Re: Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance compan

Message 1 of 11 (1,241 Views)

jimluebker wrote:

I have had Genworth LTC for years. Had a 14% increase in 2013. Just recieved notice of a 42% increase. A $2000+ per year increase. May force me to drop out thus bacicaly losing coverage and the nearly $32000 i have put in. Not a happy senior!


Do you have the option of dropping down your benefit level to save premiums cost on this policy - that might be better than nothing at all.

 

Personally, I like the saving and investing for growth idea on a personal level because remember, LTC insurance is insurance which means what you pay in premiums helps those who are receiving the benefit now and cost can only go up in the future because it is labor intensive.

 

Home Care, a personal care home or assisted living is gonna be cheaper than actual longterm care in a nursing home and  your policy should cover personal care for those areas needed and covered by your plan in wharever environment.

 

 

 

Info Seeker
Posts: 1
Registered: ‎05-05-2012

Re: Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance compan

Message 2 of 11 (1,253 Views)

I have had Genworth LTC for years. Had a 14% increase in 2013. Just recieved notice of a 42% increase. A $2000+ per year increase. May force me to drop out thus bacicaly losing coverage and the nearly $32000 i have put in. Not a happy senior!

Conversationalist
Posts: 5
Registered: ‎10-07-2016

Re: Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance compan

Message 3 of 11 (2,103 Views)

No. You're not subsidizing other policies.  Post-2003 policies were priced higher than pre-2003 policies because of the rate stability regulation. Your rate increase was based solely on the claims experience of your policy form in your state. 

Bronze Conversationalist
Posts: 25
Registered: ‎04-06-2013

Re: Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance compan

Message 4 of 11 (2,106 Views)

OK, so I'm subsidizing post-2003 policies in NC also........................

Conversationalist
Posts: 5
Registered: ‎10-07-2016

Re: Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance compan

Message 5 of 11 (2,119 Views)

It is true that many of the older LTCi policies have had large premium increases.  To protect consumers purchasing policies today, 41 states have passed strict pricing regulations.  Consumers purchasing policies today are protected from the pricing mistakes of older policies.

 

North Carolina passed a strict “Rate Stability Regulation” on February 1st, 2003.  Everyone who has purchased a long-term care insurance policy approved by the state since February 1st, 2003 is protected by these strict rules regarding rate increases.  

 

About 95% of the rate increases in North Carolina have been on policies purchased before February 1st, 2003. Only about 5% of the rate increases in North Carolina have been on policies purchased after February 1st, 2003.

 

 

Bronze Conversationalist
Posts: 25
Registered: ‎04-06-2013

Re: Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance compan

Message 6 of 11 (2,127 Views)

Actually, "viability" of the company is not the issue.  Companies (and their assets/liabilities) are bought and sold all the time.  In this case, the main concern, no matter who holds you policy, is cost increases over the next 20 years.  With the government's low (zero) interest rate policy for the last 8 years, insurance companies are becoming unable to cover future liabilities.  So they are increasing their rates horrendously.  My UNUM LTC policy of 20 years increased almost 3 FOLD last year, from $124 a month to $286 a month, courtesy of approval from the NC State Department of Insurance (interestingly, Pennnsylvania refused this increase so I guess I am subsidizing LTC policies in PA)! 

Info Seeker
Posts: 3
Registered: ‎04-16-2016

Re: Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance compan

Message 7 of 11 (2,321 Views)

Thank you for your helpful explanation.

Conversationalist
Posts: 5
Registered: ‎10-07-2016

Re: Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance compan

Message 8 of 11 (2,349 Views)

Most of the "bad news" you hear about Genworth is written for investors explaining why they should not invest in Gewnorth bonds or Genworth stock. However, there is a big difference between investing in an insurance company and being a policyholder. In fact, what's good for the policyholders are oftentimes NOT good for the stockholders (investors).

 

A couple years ago Genworth added almost $2 Billion to their LTCi claims reserves. That was good news for all of the policyholders. That was bad news, however, for the stockholders. The stockholders would have preferred that money be counted as profits which would have increased the stock price. Instead, after adding that money to their LTCi claims reserves Genworth's stock dropped and that was the cause for the class action lawsuit.

 

The last time I checked Genworth had over $20 Billion in reserves set aside just to pay long term care insurance claims. Reserves are funds that are NOT counted as assets. Reserves can't be touched by creditors. Reserves are used exclusively to pay claims.

 

Genworth collects about 2.5 Billion in LTCi premiums each year.

They are incurring about $1.5 Billion in LTCi claims each year.

And they have over $20 Billion in LTCi reserves (to pay future claims).

 

Those numbers work. I'm not the least bit concerned about Genworth's claims-paying ability.  

 

Scott A. Olson, CLTC

 

 

 

Info Seeker
Posts: 3
Registered: ‎04-16-2016

Re: Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance compan

Message 9 of 11 (2,353 Views)

Thank you, Scott. So do you have confidence in Genworth's viability (in contrast to various reports I've read)?

Conversationalist
Posts: 5
Registered: ‎10-07-2016

Re: Long-term care insurance: concerns about viability of AARP-recommended Genworth Insurance compan

Message 10 of 11 (2,358 Views)

The class action lawsuit you mention has nothing to do with Genworth paying claims properly. The class action suit was brought by stockholders who say Genworth did not properly disclose their claims projections.  

 

Genworth pays more claims than any other LTC insurance company. In 2015, Genworth incurred over $1.5 BILLION in claims.  That was almost twice as much as any other company.

 

The hard part about filing a long-term care insurance claim is that it’s something you only do ONCE in your lifetime. Most doctors don’t know what’s required to file a claim. Each state has laws that require the insurance companies to make a claims decision quickly (usually within 60 days of receiving the claim form). If the insurance company has not received the medical records and the certification from your doctor within that time period the insurance company has to deny the claim. You then have to re-open it, which is a real pain.

 

The best thing to do at the time of claim is to work with a home care agency that has a lot of experience filing long-term care insurance claims.  Amada Senior Care is one example.  They’ve processed thousands of long-term care insurance claims. I don’t work for them but I know them and I recommend them to all of my clients.

 

http://amadaseniorcare.com/free-ltci-claims-processing/

 

 

Scott