The Connecticut Elder Law Blog

Furor Over Long Term Care Insurance Rate Hikes in CT

The Hartford Courant is reporting that some legislators are calling for public hearings regarding Genworth's proposed 9% rate increase for long term care insurance premiums.  But that's chump-change compared to proposed increases from other insurers ranging between 29% to 49% or higher!  Ouch!

I've always counseled clients to try to get long term care insurance if they're insurable and if they can swing the premiums without taking a hit in their standard of living.  This is because the long term care insurance route is generally the preferred approach compared to Medicaid planning.  But if premium rates continue to rise like this then the preferred approach is going to be a viable option for fewer and fewer clients.

I don't know how much of an impact these proposed public hearings will make, but I suppose they can't hurt.  I'll keep my ear to the ground on this issue.

Court Calls Assisted Living Facility "Long Term Care"

In a case regarding coverage under a long term care insurance policy, a U.S. District Court in Ohio has decided that an assisted living facility qualifies as a "long term care" facility, even though it did not have a nurse on site 24/7.

In this case, Hoekenga vs. Continental Casualty Company (U.S. Dist. Ct., S.D. Ohio, No. 1:06-cv-458, April 18, 2007), Mrs. Hoekenga took out a long term care insurance policy that provided coverage as long at the facility provided 24-hour-a-day nursing services.  The assisted living facility in this case provided nursing services 24/7 with a nurse supervising the care.  But the nurse was not on-site 24/7 and the insurance company attempted to use this as a reason to deny coverage.

The Court agreed with Mrs. Hoekenga and decided that the term "supervision" does not require that a nurse be on site at the facility on a 24-hour-a-day basis.