Letters to the Editor Discuss Long-Term Care Insurance Policies, State Partnerships

The Wall Street Journal on Monday published several letters to the editor that address a recent article about state efforts to encourage residents to purchase long-term care insurance to help reduce Medicaid costs. According to the article, 15 states have begun to promote long-term care insurance policies under marketing partnerships with the insurers, and more than a dozen other states have begun to enter such partnerships (Kaiser Daily Health Policy Report, 2/26). Summaries of some of the letters appear below.

• Toby Douglas: The article "doesn't share all the facts about California's efforts to educate people about the potential need for and benefits of long-term care insurance," Douglas, deputy director for the California Department of Health Care Services, writes in a Journal letter. According to Douglas, "Partnership policies are designed to enable purchasers to keep some of their assets in the event they need long-term care through Medicaid (Medi-Cal in California)." He adds, "Without these long-term care policies, individuals would be forced to exhaust their savings in order to qualify for Medi-Cal at a cost of millions to taxpayers." Douglas writes that such policies "are a good value for middle-income Californians and much different from the higher-cost policies the story highlights" (Douglas, Wall Street Journal, 3/3).
  
  
• Karen Ignagni: "Long-term care insurance partnerships are a sensible way for states to help consumers protect their retirement savings by encouraging long-term care planning, while at the same time protecting state Medicaid programs against becoming even more overburdened," Ignagni, president and CEO of America's Health Insurance Plans, writes in a Journal letter. Ignagni adds, "Contrary to the impression left" by the article, an analysis of data "submitted to the National Association of Insurance Commissioners found that about 97% of long-term care claims have been paid." According to Ignagni, "Denials occur for reasons such as the provider wasn't covered under the plan, the deductible hadn't been met or the policy had expired." In addition, a "federal report found that more than 97% of long-term care insurance claimants said they were satisfied with their experience," Ignagni writes, adding, "Balanced coverage of long-term care insurance should include facts such as these" (Ignagni, Wall Street Journal, 3/3).