Hello. I just got a 96% increase in my and my husband's CNA long term care policy premium. I live in GA. When I called to ask, they told me the premium increase in GA would be the approved increase amount of 12%. So I called and asked why our premiums went up 8x that amount when I got the revised premium adjustment notice. They said because we had lived in IL briefly and took the policy out there, they could gouge us and charge us the 96% increase. But that was 18 years ago and we've lived in GA for years. I just don't think it's right that they can charge us this large increase when home health care is cheaper here and we haven't lived in IL in years. Help!
Unfortunately, the rules that govern are the approvals granted in the state of issue — although you could USE the benefits in any state, so if you keep the policy your money will go farther. I realize that is small consolation.
Three years ago when this started happening I tried to raise hell — since I have been a long-time proponent of LTCI. But the laws of each state say that if the insurance company can demonstrate they need a raise in premiums to stay solvent, the state can grant it for all policyholders (not singling out those who have medical issues, etc.). The insurers made huge mistakes in calculating the actual future usage of the policies they sold in the 90s.
The question is “what do I do now?” I suggest you DON’T DROP THE POLICY! That would give the insurance company a big win. The company should give you choices — a smaller inflation coverage, or coverage for fewer years. I also have another suggestion. If you are currently insurable, and have extra cash, you could purchase a “combo life/LTC policy. Read my recent column on that topic.
And for specific advice on what to do with YOUR policy choices, contact MAGA LTC at 800-533-6242