Public Hearing For Genworth Long-Term Care Systematic Rate Increases. Listen to consumers and others show their concern.

 Livestreamed on YouTube as South Carolina Dept. of Insurance(SCDOI) hosted a public hearing for Genworth Long-Term Care Rate Increases . . . (LTC Update)

There has been a lot of concern with the proposed systematic rate increases for long-term care policyholders in many states. In Feb 13, 2020 in Columbia, South Carolina SCDOI hosted a public hearing where Genworth representatives and staff heard growing rate increase concerns from consumers, insurance brokers and certified financial advisors. Many of the attendees were policyholders and Medicare beneficiaries who paid into these long-term care policies for decades. If you have time, listen to the consumers concerns of these rate increases and Genworth. Consumer testimonies begins at minute > 34:44 or click below:

There are 18,000 Genworth policyholders within the State of South Carolina. While many Medicare beneficiaries live off fixed incomes and have tried their best to plan for their future healthcare needs and peace of mind, LTC marketplace has become too expensive for current and future policyholders. Some current policies have increased as much as 400% from when he first purchased the policy as stated by a consumer at the public hearing. 

Unfortunately, this has priced many of the policyholders out of LTC coverage and they won't be able to continue coverage to receive their benefit. This trend is due to the volume of high claims that was not factored and the rising cost of healthcare at long-term care facilities. 

A Filed LTC Rate Increase for the State of South Carolina(SCDOI)

Future Systematic Rate Increases for Genworth Long-Term Care Products and Policyholders

What is Genworth's position? They are advocating transparency, admitted early market mistakes, along with systematic rate increases planned and offer communications like their hotline(1-866-419-0401) for LTC policyholder rate increases. For right now, they seem to be solvent with this particular state(SC) even after paying billions of dollars in claims. Genworth has the most LTC policyholders (approx 1.4 million) in the U.S. with responsibilities to current and future LTC policyholders. 

Many LTC consumers are stressed and frustrated over impending future gigantic rate hikes. Genworth and the few other Long-Term Care insurance companies are bearing a huge weight of responsibility to pay claims in a healthcare system that continues to rise in cost year after year for the U.S. aging population.

 

As a side note, in October 2016 Genworth engaged in an agreement for sale(Initial Public Offering) with China Oceanwide Holdings Grp Co. for $2.7 Billion dollars in cash. Both parties have not been able to close at the expected Nov 30, 2020 date. What could this mean for policyholders? Would this save the LTC giant from insolvency? Can a foreign holdings company stabilize the LTC book of business with impending claims losses? It does not seem likely that a foreign holdings company curtail the continued rate increases after if Genworth is purchased in 2021.

What are the consumer options? Well, some folks may want to shop LTC products that you see below but this doesn't help you with your policy rate increase. If you are able to afford the rate increases and have Traditional Medicare (Part A&B) along with Medigap(Supplement) coverage, there could be an opportunity to still save on your Medicare Supplement while bearing your LTC rate increases. If are close to being priced out of your LTC coverage, that is heartbreaking to pay years or decades of premiums for benefits you want to keep. Genworth efforts to keep your LTC coverage could mean adjusting down to lower LTC benefits. The public hearing in South Carolina had Genworth and LTC brokers speak about the industry and possible options to keep coverage. It is best to speak to the experts about the LTC option details.

 Unfortunately, LTC was never planned as an earned benefit and is not covered under Medicare Part A(Inpatient Care). Beneficiaries with Medigap(Medicare Supplement) plans do have skilled nursing facility coverage that is sometimes provided at a long-term care facilities. Medicare only covers temporary skilled nursing facility situations.

Either way there is a insolvency concern for current policyholders to benefit from future LTC claims that they have paid into for years. Maybe this is a wake up call for the LTC giant to run a lean ship. Possibly partner with consumer advocacy groups like AARP(represented at the meeting) to ensure LTC solvency. Or, are they going to take the foreign IPO and transfer insolvency concerns to China Oceanwide Holdings Grp Co.

In any case, more communications and public hearings for the U.S. aging population is a good thing if policymakers at the state and federal level can advocate for our aging American baby boomers in need of long term care options to stick around. 
 If you are affected by these LTC industry wide rate increases please comment below.
     

    

Michael C. Fischbach | About.me/MedicareMike  | Mike@MedicareSavings.US