Untitled Document

MassAHU Presents Testimony in Support of NAIC LTC Model Bill. Tobe Gerard, CLTC, MBA, MLS, a member of MassAHU's Board of Directors and Dan Foley, Legislative Counsel, presented testimony before the Joint Committee on Financial Services in support of S-575, An Act to Establish Standards for Long Term Care Insurance and H-1004, an Act Relative to a Long Term Care Partnership Program.
S-575 is the Massachusetts version of the NAIC LTC Model Act. It would establish standards for long term care insurance which would enhance the role of the Division of Insurance (DOI) in evaluating rate adequacy and reporting requirements by insurance carriers. Enactment of this legislation is necessary, according to Dan Foley, if Massachusetts is to move forward with the implementation of the Mass Partnership program, bringing the program into compliance with the provisions of the federal Deficit Reduction Act of 2005 (DRA). We want consumers in Massachusetts to have confidence in the LTC policies that they are purchasing in helping them best protect their assets.
H-1004, as well as S-575, requires the state to submit a state plan amendment to the federal office of Health and Human Services (HHS) to implement a partnership program for long term care insurance. The plan shall comply with the requirements of the DRA and the Massachusetts' LTC regulations. The DOI would be responsible for implementing and managing the program and would be given authority to enter into reciprocal agreements with other states that have similar partnership programs so that individuals who have purchased qualified polices in one state can access services in another state.
Tobe Gerard made her presentation as a board member of MassAHU, as owner of an insurance agency specializing exclusively in long term care insurance, as a member of NAHU's LTC Advisory Committee, and as a consumer of the product. Ms. Gerard reiterated the importance of passing S-575 and H-1004, stressing the advantages that consumers will have if either or both of the two bills become law. Consumers will have more options in planning for their long term care needs, particularly in light of the new asset transfer restrictions imposed by the DRA.
In her comments,Tobe stressed that Senate Bill 575 would allow us to join with other states who have enacted standards for long term care insurance and would enhance the role of the Division of Insurance in evaluating rate adequacy and reporting requirments by insurance carriers.
House Bill 1004 would allow us to join with other states who have enacted a qualified Partnership program that allows consumers to protect their assets by purchasing a qualified long term care insurance policy and thereby not draining their own assets as well as the assets of the Medicaid program. In addition, enacting a state long term care insurance Partnership would allow us reciprocity with other states who have already enacted a Partnership program.
As an aside, Ms. Gerard also pointed out that she is licensed to sell, and does sell, long term care insurance policies in the State of Connecticut. There is no downside to the Partnership program. Partnership policies cost the same as non- Partnership policies; Partnership policies require appropriate inflation, non forfeiture, and other provisions; and Partnership policyholders get a 5% discount off of the daily rate when receiving care in a Medicare approved nursing home. Plus, when you add in the $ for $ asset protection, the state, the consumer, and the insurance companies all win.
If you have any questions about either S-575 or H-1004, please contact Dan Foley, Legislative Counsel, at 508.628.5452 or 800.972.9312 or email: dfoley@massagent.com