BALTIMORE – To proactively address issues associated with the long-term care insurance marketplace in Maryland, a workgroup consisting of Maryland Insurance Administration (MIA) staff and invited consumer advocacy groups, insurance industry representatives and elected officials met via conference calls (open to the public) from October until December of 2016. As a result of the collaborative process, several actions have been taken by the Maryland Insurance Administration to provide greater transparency for consumers as they evaluate how to budget for their long-term care needs. Approximately 150,000 Marylanders have long-term care insurance policies. There are currently 23 companies that are licensed to sell long-term care insurance in the state.

 
“We are pleased with the recommendations that the cross-functional Long-term Care Workgroup has outlined for consideration and implementation,” said Commissioner Redmer. “We know that this is a national issue and there are no silver bullet solutions. That said, we were able to develop a number of proposed regulatory reforms and operational changes that will benefit the impacted consumers and provide a more predictable rate approval process for insurers and consumers. We will continue to work with all interested stakeholders during the legislative session to continue to develop and implement mutually agreeable solutions.”

The accomplishments to date of the Long-term Care Workgroup include the following:

1) Long-term Care Public Rate Review Hearing held on October 27, 2016
2) Long-term Care Public Rate Review Hearing held on Monday, January 9, 2017
3) 2014 National Association of Insurance Commissioners (NAIC) Long-Term Care Model Regulation amendments slated for adoption effective February 27, 2017 (amendments encourage more conservative pricing,  require an annual actuarial statement be filed with the Commissioner, enhance consumer contingent non-forfeiture benefits, and improve consumer disclosures)
4) Bulletin 17-01 issued January 3, 2017 (notifies carriers that all Long-Term Care rate increases will be subject to a public rate review hearing and that all actuarial memoranda will be published on MIA website for public review)
5) Consumer Frequently Asked Questions developed and available to the public
6) The Maryland Insurance Administration staff will be reviewing the 2016 Amendments to the NAIC Model Regulation for Long-term Care Insurance with respect to Consumer Disclosure requirements. Upon final review, a recommendation will be made for the Maryland marketplace.

To continue the dialogue on this important issue, the Maryland Insurance Administration will conduct a Public Meeting on Monday, March 6th at the Department of Agriculture building in Annapolis from 1 p.m. - 4 p.m. to discuss the state of long-term care insurance in Maryland and hear feedback from consumers and industry.

For more information on long-term care insurance, visit: http://insurance.maryland.gov/Consumer/pages/LongTermCare.aspx

 

 

The Maryland Insurance Administration is an independent State agency charged with regulating Maryland’s $28.5 billion insurance industry. For more information about the Insurance Administration, please visit www.insurance.maryland.gov or follow us on Facebook at www.facebook.com/MDInsuranceAdmin or Twitter at @MD_Insurance.

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