Policyholders face steep rate increases due to actuarial losses, with 30 days to decide on coverage adjustments or self-insurance.
Long-term care insurers are imposing premium hikes of 50% to 200% on legacy policies, citing actuarial losses from underestimated services inflation and lower lapse rates. Policyholders must choose between accepting the increase, reducing coverage, or lapsing policies within 30 days.
Retirees with assets like $1.5 million may opt to self-insure, dropping coverage to avoid costs such as a $4,200 annual premium doubling to $8,400. Industry-wide, these hikes reflect rising claim severity and persistent inflation in nursing home and home health expenses.
The moves have sparked confusion among policyholders, with many seeking advice on whether to accept the hikes or explore alternatives like hybrid insurance products.