Legislator Group To Probe LTC Claims Practices

Bonnie Burns of California Health Advocates, Sacramento, Calif., told the committee that states could do more to protect consumers, particularly with long term care partnership programs that allow individuals to protect assets equal to the amount of benefits paid by an insurer when applying for Medicaid.

State Medicaid programs should draft disclosure documents that describe asset protection and estate recovery rules under the partnership policies as well as what happens when a policy owner moves to another state, Burns said.

John Gerni of the American Council of Life Insurers, Washington, and Martin Mitchell of America's Health Insurance Plans, Washington, told the panel their groups supported the NAIC model act, which would add consumer protections for LTC insurance.

Both also told the group that abuses described in the Times article were aberrations.

Donald Walters of the Insurance Marketplace Standards Association, Bethesda, Md., informed panel members that IMSA may begin drafting quality standards for LTC insurance.