Oh, it's begun. As predicted here, the changes in the law, specifically, the Pension Protection Act of 2006 which provides for the inclusion of long term care insurance riders to annuity contracts and life insurance policies (so that those policies are used to pay for the l/t insurance), is the new cash cow for insurance salesmen. In an "article" addressing "educating" the public about long term care, the website "Medical News Today" addresses how long term care should be sold to the public. (See cite and read article for yourself at http://www.medicalnewstoday.com/articles/110657.php).
We're in the early stages of selling long term care, when the salesmen are taking a nice approach which is fear tactics...."...any person could fall victim to a disability or need chronic care because of aging" (see above cite). Remember when all insurance was sold that way? Then the "profit motive" kicked in and we all started getting insurance riders excluding coverages. Then we started seeing delays in reimbursements for coverages. Then we started seeing delays in receiving denials of coverages. Then we started seeing premium increases for less coverage. Then we started seeing the fingerpointing at unhealthy citizens as the reason for increases in cost and decreases in coverage. Then we started raising rates based on the risk of some of those less healthy citizens. Now we see those unhealthy citizens excluded from insurance coverage. Then we see lawmakers MANDATING coverage. Oh, we've seen this before. So, I did respond to these kind-hearted pushers of the new insurance product and I asked them about the omission of the mention of the law that is enabling this new exploitation of a frightened American public, the pairing of long term care insurance with a life insurance or annuity product, that is what follows here:
"Why does an article about "educating" the public omit any mention of the Pension Protection Act of 2006?
As recently as January 1, I mentioned this law on my blog because it's purpose (to get people to fund their own costs of medical services to relieve Medicare/Medicaid) and its timing (now is the time when the law kicks in) indicated to me enough to make the following prediction:
'Subtitle D addresses Health and Medical Benefits and sections 841-845 are particularly relevant to insurance. Modifications to laws should be read with a clear view to their intent. Health law modifications are moving towards privatization (we are empowered to expect nothing from the government we've paid into all our lives because THAT's capitalism). The red flags to watch for are the spin of how the Medicaid and Medicare systems will run dry if we don't do something (raiding those budgets for other governmental dollars needs clearly is not addressed) and how only loser, commie, moochers would accept participation in government health insurance.'
While selling the l/t care product to consumers, it's also interesting that no mention of the key feature: This is an insurance policy and insurance policies look to NOT pay because that's how they make their money. All the variables that create issues in the current insurance environment including getting a response from the insurance company, claims denials, delayed reimbursements, exclusions, apply to long term care policies with the added difficulty presented by the fact that someone else usually has to fight to get your insurance benefits because long term care kicks in when you're in a medically compromised state.
Instead of talking about how to "sell" these policies to the public because the Pension Protection Act has created an opportunity for easily obtaining payment for such policies from other products (life insurance and annuity), it would be good to see companies stop selling air at a premium rate through iron-clad guarantees that people will be able to get the coverage they think they're getting. However, that would cut into the sales of these contracts and is therefore unlikely to occur in this environment where the answer to having insufficient "insurance" is to buy MORE "insurance" which used to be called throwing good money after bad."
