This is the time of year when many companies are talking about the year that was and the year that will be in their annual reports. Catherine Dove, an LTCi industry veteran, sent us her version of an LTCi industry letter to stakeholders.
The long-term care insurance (LTCi) industry went through more changes in 2013 – highlighted by the introduction of gender rate pricing.
As 2013 unfolded, it was quite obvious that gender rates were clearly not a fad but a trend and paradigm shift in the way the industry will be pricing LTCi products in 2013 and beyond.
LTCi took a page out of the Life insurance industry by using a gender premium rate pricing structure on its products. Until 2013, LTCi plans used unisex pricing, where carriers charged the same premiums regardless of the sex of the individuals. Historical data have consistently shown that women are living longer and industry reports show their claims have been more costly than males. The move to gender rates is designed to better reflect the risks of insuring females.
In addition to living longer, females usually have no caregivers at home, which increases the risk to the insurance carrier. In 2013, four top carriers released products with gender rate pricing.
Other carriers have filed gender premium rate pricing structures, as well.
However, four insurance carriers have been named in a sex discrimination complaint filed by the National Women's Law Center (NWLC) alleging that the insurers charged women up to 40 percent more for long-term care insurance, which pays for nursing home care.
This nonprofit group argues that new anti-discrimination language in the Affordable Care Act, known as Obamacare, protects female consumers who buy LTCi coverage, as well as those who buy traditional health insurance.
In 2013, the multilife/worksite marketplace was depleted by carriers' decision to exit this market. Genworth announced its exit back in January and MedAmerica recently discontinued its simplified issued multilife programs.
