Responding and Managing the Impact of COVID-19

Assured Allies and Faegre Drinker have partnered to develop a playbook for the long-term care insurance industry. Responding and Managing the Impact of COVID-19 offers insights, guidance and ideas to manage the short- and medium-term impacts of the COVID-19 global pandemic and provides potential avenues for long-term care insurers to explore in the post-COVID-19 world that could change long-term care insurance forever.

The Impact of COVID-19

A public health crisis such as COVID-19 is very likely to have a significant effect on the health of older adults, even those who do not contract the virus. Vulnerable adults are those who often age in place with limited support systems and who are susceptible to quickly losing their ability to maintain independence.

For example, we anticipate that the American senior population will experience the following effects of the COVID-19 pandemic:

  • Accelerated deterioration of an existing medical condition, resulting from, for example, missed medical appointments, breaks in treatment, postponed operations, limited access to clinicians, and interruptions in medication schedules.
  • Prolonged hospitalization and respiratory rehabilitation for those contracting COVID-19. Any muscle and functional loss due to hospitalization may be significant.
  • Functional deterioration due to reduced mobility, being confined to their homes, and not being able to sustain their normal daily routines or recreational activities.
  • Psychological deterioration (e.g., fears, stress) due to imposed isolation, fear of being alone, the stress that comes from listening to the media, etc. COVID-19 has created real isolation for many Americans, in particular, the elderly. A recent Assured Allies survey of hundreds of aging adults showed that older, more dependent subgroups exhibited significant negative health effects associated with isolation.
  • Interrupted caregiving is a natural outcome as both caregivers and care recipients are fearful of virus transmission. Home care agencies report 30%–50% reduction in home care client volume, across both paid and family caregivers. Without this vital support (e.g., food preparation and delivery, health checks, physical and mental stimulation and assessments, ADL and IADL help) deterioration in health status can come quickly. Moving to effective remote caregiving requires resources, a plan and expertise.

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Steven H. Brogan

About the Author: Steven H. Brogan

Steven Brogan represents insurers and third-party administrators in litigation, regulatory compliance, premium rate increases, claims administration, compliance training and audits, and fraud prevention, with particular focus on long-term care insurance matters. In litigation, he represents long-term care insurers in class action and individual litigation related to a wide range of matters, including complex coverage issues, bad faith claims and premium rate increase litigation. Visit Steve's full bio on the Faegre Drinker website.

Jessica E. Loesing

About the Author: Jessica E. Loesing

Jessica Loesing is a member of the firm's insurance practice group with experience in the life, disability, long-term care, and property and casualty sectors, as well as the financial services area. Visit Jessica's full bio on the Faegre Drinker website.

Sandra K. Jones

About the Author: Sandra K. Jones

Sandra Jones partners with insurance industry clients to address and resolve legal and regulatory challenges, as well as coverage and claims disputes that may be impeding their businesses. Visit Sandra's full bio on the Faegre Drinker website.

Christopher F. Petillo

About the Author: Christopher F. Petillo

Chris’s insurance litigation experience includes coverage and extra-contractual disputes in state and federal courts across the country, involving life, long-term care, annuity, and property and casualty policies. Substantively, Chris’s litigation focuses on life insurance pricing issues such as cost of insurance, fraud (including rescissions), broker misconduct, lapse and reinstatement, civil RICO, and claims disputes. Visit Christopher's full bio on the Faegre Drinker website.

Stephen A. Serfass

About the Author: Stephen A. Serfass

A nationally recognized authority on long-term care insurance, Stephen Serfass helps clients develop their businesses and resolve challenges that could impede growth and financial performance. As former in-house counsel at a leading insurer, Steve prioritizes risk mitigation and financial economy when defending clients in class actions and individual litigation. Visit Stephen's full bio on the Faegre Drinker website.

Nolan Tully

About the Author: Nolan Tully

Nolan Tully advocates for insurance and financial services clients facing challenges in various aspects of their businesses. Nolan assists life, long-term care and disability insurers as well as annuity issuers with product development, regulatory compliance, and dispute resolution and litigation. Visit Nolan's bio on the Faegre Drinker website.

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