Florida Office Of Insurance Regulation Undertakes Analysis Of Long Term Care Insurance Market
Contact: Valerie Beynon, APR
Tallahassee – The Florida Office of Insurance Regulation (Office) has begun a comprehensive analysis of the Long Term Care insurance market. The project will include at least two public hearings to solicit input from those who may be affected by changes in the Long Term Care market.
This project examines the economic, regulatory and public policy aspects of the private long term care market. Detailed analysis focuses on innovative pilot projects developed in a number of different states.
The Office looks forward to working with the Florida Legislature and executive branch on finding solutions to protecting our seniors. "Florida's most vulnerable population purchases Long-term Care insurance to protect their independence, their assets and their families," said State Senator Mike Fasano (R-New Port Richey). "We are going to ensure that the problems in this market are remedied."
Although private Long Term Care insurance has been available for some time, recent estimates suggest that this insurance pays only about 3% of all expenses. The remainder falls to either families or Medicare/Medicaid. Nationally, there have been significant issues regarding pricing, contract specifications and Long Term Care availability.
"Management of Long Term Care expenses is a facet of personal risk management that is becoming increasingly important nationally as our population ages," said Florida Insurance Regulation Commissioner Kevin McCarty. "This is especially true for us in Florida. Private Long Term Care insurance could be an important tool in this process; to date, however, it has not lived up to its potential. Through careful research and analysis, we want to know why, and more importantly, we will use what we learn to help structure a healthy market for the people of Florida; with products and pricing practices that will restore consumer confidence in Long Term Care insurance."
This project is being conducted by the Office's newly created Market Research Unit.