In our last article “Should the California Partnership have a Memorial Day 2017” (May 21, 2017). We here at Senior Insurance Training Services brought you up to speed on the “First” Partnership Task Force meeting that was held back in April.
The meeting was essentially designed to establish the goals and objectives for future meeting regarding the future of the California Partnership for Long-Term Care Insurance. The purpose/mission statement was established:
“To provide advice and assistance in implementing enhancements to the California for Long-Term Care
program and consider other means for assisting consumers in addressing their Long-Term Care needs.”
The Task force objectives were established.
“To develop strategies leading to the development of new, innovate and affordable private Long-Term Care insurance Policies or Certificates that revitalize
the Partnership program by encouraging modest and middle income Californians to participate in funding their own Long-Term Care in whole or in part!
They informed us of the “Expected Outcomes”:
- Identify and propose new strategies and Long-Term policies for financing LTC services and supports.
- Retain active partner insurance services and motivate inactice and new partner insurers to collaborate with the Partnership program with “New Partnership Consumer Centric Policies.”
- Propose new strategies for marketing and education companies to educate consumers on new policy designs and engage them in advances planning to meet their needs for LTC.
So back on June 20th of this year, the Partnership task force held a second meeting. Now, remember what I just wrote about what the “Purpose/Mission” is and let’s not forget what the “Task force objective” is:
To develop strategies leading to the development of “new,” “innovate“and (this is the biggest one of all!) “affordable” private Long-Term Care insurance Policies or Certificates that “revitalize” the Partnership program.
Oh by the way, prior to this June meeting, I was asked by some key advisors to the task force if what we at Senior Insurance Training Services were proposing is or would be compliant with or to all of the DOI, Chapter 2.6 Long-Term Care Code of California and the answer and is absolutely or emphatically YES!
Initially what everyone has been simply asking for was just a “simple” modification to the 5% compound inflation requirement to those age 69 less than, that’s it!
In fact, I again was asked to provide “empirical” data justifying the addition of 2 or 3% compound inflation coverage and going back 20 years of Care Scouts cost of care survey’s as well as claims data going back ten (10) years of Partnership data and Genworth’s claims data. Those two inflation options would “clearly” meet 80-90% of the claims data utilization costs and reduce the amount premiums dramatically!
However since this discussion has lasted over ten (10) years with the Partnership, today another “critical” issue has now come into play and that is the “minimum daily benefit” requirement. That has now “increased” to $210 per day! Again, another requirement driving up the cost of this insurance and making it unaffordable to the masses!
We are now proposing to the Partnership that they need to “stop” the current “proposed New Partnership Regulations Approval Process” since not one of the carriers has acknowledged “any intent” of offering any of their “antiquated”, outdated policy design recommendations and therefore to invoke the “Partnership Waiver” of DHCS Regulations protocols and to “simply” adjust or modify their current “approved Regulation” addressing Inflation offerings and “minimum daily benefit” requirement and product approvals.
Oh, by the way, the California Department of Insurance has made available to the task force its new CA LTCI Product “checklist” which is designed to “streamline” the product approval process down to 60 or less days (a memo from the DOI last August purported to have an approval timeline for LTCI products down to 46 days). We all know that was pure bulldong!
However, because of the last task force meeting, the DOI LTCI review group responded quite favorable to our complaints of review times of 2-3 years as unacceptable and produced the check list in 3 weeks! This was and is a huge breakthrough.
Our next meeting is scheduled for September 27th but stay tuned for major announcements coming soon regarding Partnership Resurrection!
To learn more about the new “Plan Design/Short & Thin and “Suitability of Short & Thin” Recommendations surrounding California LTC Ins offerings attend one of our upcoming classes or book a private meeting with Tom Orr for groups of ten (10) or more!