After the publication of our last article, “Should I maintain my Partnership Certification…?” Yes, No, Maybe!, we received many calls and emails regarding the status of the program. As we approach the unofficial beginning of summer with barbecue parties on Memorial Day 2017, what are they cooking in Sacramento now?
On Monday, April 3rd, the California Partnership for Long-Term Care held its inaugural Long-Term Care Insurance “Task Force” meeting. This meeting was in direct response to the passage of last year’s Senate Bill 1384 (Liu) which called for the formation of the task force, a collaborative group of stakeholders involved in the assessing options for creating viable long-term care insurance products for “Middle-Income Californians.”
According to the Partnership, they saw this as an ideal opportunity to draw together some of the best informed voices in the industry to identify and work toward solutions to provide for the millions of Californian’s who will need long-term care but lack the long-term resources to pay for it. Combined with proposed new regulations from DHCS and Senate Bill 255; the goal is to allow more flexible, affordable policies which could significantly reinvigorate the California market.
Senate Bill 1384 requires that the task force include representatives designated by each of the following:
-The Department of Health Care Services
-The Department of Social Services
-The Department of Aging
-The Department of Insurance
-The Department of Managed Health Care
-The Senate Committee on Rules
-The Speaker of the Assembly
They should consult with persons knowledgeable of and concerned with long-term care, including, but not limited to the following:
-Long-Term Care providers
-Representatives of Long-Term Care Insurance Companies and administrators of Health Care Service Plans
-Academic Specialists in Long-Term Care &Aging
-Representatives of PERS & STRS
We here at Senior Insurance Training Services have been working on this endeavor since 2010 with the withdrawal of John Hancock and Met Life. Then again, in 2012 when John Hancock reentered the California Marketplace reflecting the realities of 12 years of negative interest rate environment, priced the 5% compound rider by over 150% making it an unaffordable feature for many.
In September 2014, a meeting was held in Sacramento to discuss the realities of our LTCI marketplace in California, and in fact it consisted of the very makeup of this “New Task Force”, yet, nothing happened!
May 18, 2015, I personally sent a letter to the California Partnership (Please see attached letter) to discuss proposals, according to the Partnership; they had been working for the last couple of years (see comments from letter). Once again, “Nothing!”
I will save you all the painful chronology of the long, slow death of the California Partnership (see July 14, 2016 LTCCE.com article titled “Is the California Partnership dead or alive?” for greater detail.) We can only hope and pray that after seven (7) years, California will take action more quickly to help the millions of Californian’s who may need long-term care services in the future; with an “affordable’’ alternative to “self insuring”.
To stay educated and abreast with these and other critical issues facing the California Long-Term Care Insurance market, to receive and discuss the proposed issues and talking points, made by Senior Insurance Training Services to the working group of the task force, Attend one of the upcoming Partnership seminars and get your copy now!
The proposal is broken into 2 (two) parts:
-1 Critical issues for 2017, now or never
-2%,3%,5% Compound Inflation Option/No age based!
-Minimum daily dollar benefits starting @” $130 per day”
-Based on Income/Asset criteria; Higher deductible of 180 & 365
-“Pools of Money” product approach $50,000, $100,000, $150,000, $250,000 etc.
-Asset credit, accumulation credit for “Share Care” options
-“Premium Waiver” for day one home care
-New Company Enrollment/Participation/Quick Approval process
-2 Issues necessary for 2018. Debatable and workable, but necessary
-Enforcement of the “DRA” and implementation of SB 84 (7-Years in waiting)
-Policy “conversion” guidelines, 5% compound Step down clarification
-Partnership Designation program
Stay ahead of the learning curve and sign up by attending Senior Insurance Training Services California Partnership for LTCI 8-hour “Certification” course by viewing our class calendar to register or call 800-460-7487.
Stay Educated … Stay Informed!