NAIC meeting addresses insurance rate increases for seniors.
WASHINGTON, D.C. (June 11, 2013) — On June 11 the National Association of Insurance Commissioners (NAIC) concluded an Interim Meeting on long-term care insurance regulatory developments. The work session, held in Reston, VA, was hosted by the Senior Issues Task Force of the Health Insurance and Managed Care Committee.
“State insurance regulators have been working to address the complicated pricing issues surrounding long-term care insurance as both life expectancy and long-term care costs go up,” said Scott Kipper, Nevada Insurance Commissioner, who chaired the meeting. “State insurance departments, consumers and companies all seek to work together to find the best approaches to addressing complex issues surrounding long-term care rate increases.”
The focus of the meeting was two-fold: 1) addressing rate increases on older policies sold several years ago and 2) looking at the regulatory framework to improve stability of rates for policies going forward. As they discussed these topics, the task force received feedback from consumer representatives, insurance companies and stakeholders.
“Medicare generally does not cover long-term care, and not everyone qualifies for Medicaid,” said Adam Hamm, NAIC President-Elect and North Dakota Insurance Commissioner. “Many people have purchased long-term care insurance policies, so as regulators we must be sure that policyholders are treated fairly and that insurers are able to meet their obligations when claims come due.”
The meeting, designed to advance solutions in the market, follows a public hearing held last November that identified issues for the task force to address. Audio files and meeting materials from both hearings are available on the NAIC website.
About the Nevada Division of Insurance
The State of Nevada Division of Insurance is a division of the Nevada Department of Business and Industry. It is the state agency that protects the rights of Nevada consumers and regulates Nevada’s $11.2 billion insurance industry. It has offices in Carson City and Las Vegas. In 2012, the Division investigated more than 1,900 consumer complaints and recovered nearly $4 million on behalf of consumers. For more information about the Division of Insurance, visit DOI.NV.GOV.
About the NAIC
The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit www.naic.org.