The Iowa Insurance Division wants issuers of long-term care insurance (LTCI) to come up with a systematic process for administering any "alternate plan of care" provisions.
The provisions give policyholders a chance to work with physicians and the policy issuer to come up with a plan for covered care. The plan might be different from the type of care normally covered by the policy.
The provisions allow for some flexibility in policy administration, but Nick Gerhart, the Iowa insurance commissioner, says in a recent bulletin sent to insurers that policyholders who see the provisions may end up thinking they are entitled to benefits they will not actually get.