NAIC’s Long-Term Care Insurance (B) Task Force Issues Recommendations for 2025 Charges

The NAIC’s Long-Term Care Insurance (B) Task Force (“Task Force”) has issued its recommendations for 2025 charges, which would disband the Task Force and reallocate the Task Force and the Long-Term Care (B) Working Group’s work to other related task forces.

The Task Force recommended that it be disbanded as of December 31, 2024, advising that based on the work it has already done to improve the multistate actuarial (“MSA”) rate review process, as well to research reduced benefit options and related consumer notices, both those initiatives would be better served by, and align with the work of, other NAIC task forces.

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Key Components of Building Sustainable Long-Term Care Wellness Initiatives

A new paper out this week from Milliman takes a closer look at some of the key components of building and evaluating sustainable long-term care (LTC) wellness initiatives. The paper outlines the general steps and considerations for LTC wellness programs, including:

  • Design considerations
  • Risk framework
  • Measuring success
  • LTC wellness assumptions in long-term projections

Read the full paper here.

This report was authored by Milliman’s Jeff Anderson, Principal & Consulting Actuary and Juliet Spector, Principal and Consulting Actuary. Founded in 1947, Milliman is an independent risk management, benefits and technology firm with offices in major cities around the globe. It serves business, financial, government, union, education and nonprofit organizations.

Court Sides with Long-Term Care Insurer Over Claim Denial and Potential Fraud

A judge from the District of Colorado recently issued an opinion that might leave the door open for long-term care insurers to void policies after the contestability period expires if an insured commits fraud. See Meyer v. Mass. Mut. Life Ins. Co., No. 22-cv-2933, 2024 WL 2106452 (D. Colo. Apr. 26, 2024).

Though MassMutual initially approved Mr. Meyer’s claim in April 2018 after a psychologist determined that he had a severe cognitive impairment, MassMutual uncovered evidence in March 2020 during the benefits recertification process that suggested he was not severely cognitively impaired. MassMutual surveilled Mr. Meyer and recorded Mr. Meyer driving, shopping, carrying groceries, and walking unassisted. MassMutual ultimately terminated Mr. Meyer’s benefits in October 2020. Mr. Meyer then sued MassMutual for breach of contract and bad faith. MassMutual filed a counterclaim for fraud and, as part of the requested remedy, sought to invalidate Mr. Meyer’s policy for fraud in the claim process.

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Data-Driven Pre-Claim Programs Bend the LTCI Claims Cost Curve, New Report Shows

Our partner Nolan Tully recently co-authored a research report, “Data-Driven Pre-Claim Programs Bend The LTCI Claims Cost Curve,” with Assured Allies. In the report the authors discuss an evidence-based program to reduce aging-related disability and help long-term care insurance (LTCI) policyholders remain independent longer.

In the report, Nolan along with Assured Allies’ Afik Gal (co-founder & president) and Andy Freedman (vice president, client experience), detail further:

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2024 Intercompany Long-Term Care Insurance Conference

Faegre Drinker is delighted to sponsor and speak at the 2024 Intercompany Long-Term Care Insurance (ILTCI) Conference, coming up March 17-20 in San Diego. This annual event draws hundreds of attendees from insurance, financial, and other business sectors, and serves as a platform fostering collaboration among insurance regulatory authorities, educational institutes, actuaries, and others with interest in long-term and extended care insurance. We look forward to seeing you in San Diego!

During the conference, Faegre Drinker will be well represented by members of our LTCi team who will be speaking on the following topics:

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Faegre Drinker LTCi Leader Steve Serfass Talks Future of LTCI in New Podcast

Our very own Steve Serfass is featured in a new podcast episode of “Voices of LTCi” from The Helper Bees. In the episode, Steve talks with The Helper Bees CEO Char Hu about creating Faegre Drinker’s long-term care insurance (LTCi) practice and the importance of addressing the legal needs of the industry. He also discusses the path of his legal career and his hopes for the future of the LTCi industry.

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Artificial Intelligence Briefing: AI Insight Forum Underway

We wanted to bring your attention today to a new alert written by three of our Insurance practice colleagues summarizing recent legislative and regulatory efforts concerning Artificial Intelligence.  Our AI team, led by Scott Kosnoff, has been at the forefront of these issues – including being included in discussions with, and providing education on, AI issues with various industry stakeholders.

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CDI Issues Bulletin Warning Insurers of False and Misleading Advertisements Related to Public Option Legislation Pending in California

Insurers and brokers selling long-term care (LTC) insurance in California should be aware of the California Department of Insurance (CDI) bulletin of August 23, 2023, expressing concern over certain complaints received by CDI regarding marketing efforts being used to encourage California residents to purchase LTC insurance in advance of any LTCi public option that may be implemented in California. Specifically, the complaints alleged that marketing efforts have included statements that such LTCi public option will be implemented in 2024; that a payroll tax will be levied on California residents as part of the public option program; and that – like the regime in Washington – such tax can be avoided by purchasing LTCi before the end of 2023.

As part of the bulletin, the CDI emphasized that no legislation concerning a public option has been passed. Rather, pursuant to California Assembly Bill 567 (2019), a task force has been created to study potential design structures, which feasibility study was issued in December of last year. Additionally, the task force is currently working on an actuarial analysis of the proposed design structures, due to be issued by January 1, 2024. The CDI emphasized that, following the issuance of any actuarial report, the Legislature “may choose to adopt some, all, or none of the recommendations of the Task Force.”

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