Los Angeles, CA, December 07, 2013 --(PR.com
)-- Long term care insurance remains one of the most misunderstood insurance products in the financial marketplace and one that is in desperate need for leadership declared the head of the American Association for Long Term Care Insurance.
Speaking to a group of industry leaders, Slome remarked that yesterday's Genworth call to investment analysts may mark the turning point for the industry. "People have been talking amongst themselves about the need for change for years," Slome notes. "Genworth's McInerney raises the discussion to a new level yesterday articulating clearly why change must occur and sharing the company's commitment to take a leadership role in driving the changes essential to the industry's growth and survival."
"Change is vital and the time is now," Slome declared, noting that long-term care insurance was first created and offered in the 1970s and 1980s. "People have been anticipating the industry's demise for years without understanding the consequences," Slome states. "If a private market for long term care insurance disappears, there will be a greater dependence on already stressed state Medicaid budgets as the 76 million baby boomers hit the age when the need for long term care is most severe," Slome explains. "It's in the nation's best interest to preserve Medicaid for the neediest by preserving a private marketplace for those who desire an alternative."
The director of the American Association for Long Term Care Insurance particularly cited McInerney for his comment during the investor call, "But going forward, I think the major change, and I think Genworth is going to lead on this, will be to move to a process that both the industry, as well as regulators, get more comfortable with the fact that you have to allow for the re-rating annually to take into account what may happen over the 25-, 30-year duration of the policy," McInerney stated.
"It is impossible to price a product today and predict economic and health changes over the next 30 years," Slome cites, "which is exactly what current regulation requires for long term care insurance. Consumers understand and accept regular price increases and even seniors know their Medicare cost goes up each year. An identical approach not just makes sound financial sense but will expand the private long term care insurance market by reducing the cost to purchase at younger ages."
For additional information or for no obligation long term care insurance costs call the organization at (818) 597-3227 or visit their website at www.aaltci.org.