It Was ‘Supposed To Be Our Safety Net’: Turmoil In Long-Term Insurance Industry Hits Customers Hard
Almost every insurer in the business badly underestimated how many claims would be filed and how long people would draw payments before dying. People are living and keeping their policies much longer than expected, which is making the business unsustainable for the companies. In other marketplace news, some of Humana's employees will be getting a wage increase thanks to the Republicans' tax plan, and Aetna has agreed to settle claims over a privacy breach.
The Wall Street Journal:
Millions Bought Insurance To Cover Retirement Health Costs. Now They Face An Awful Choice
Long-term-care insurance was supposed to help pay for nursing homes, assisted living and personal aides for tens of millions of Americans when they became unable to take care of themselves. Now, though, the industry is in financial turmoil, causing misery for many of the 7.3 million people who own a long-term-care policy, equal to about a fifth of the U.S. population at least 65 years old. Steep rate increases that many policyholders never saw coming are confronting them with an awful choice: Come up with the money to pay more—or walk away from their coverage. (Scism, 1/17)
The Hill:
Humana Credits GOP Tax Bill For Boost To Employee Benefits, Wages
Health insurer Humana said it will be raising the hourly minimum wage for all of its employees as a result of the GOP tax bill. The legislation signed by President Trump last month slashed the corporate tax rate in an attempt to boost wages and add new jobs in the U.S. (Weixel, 1/17)
The Associated Press:
Aetna To Pay $17M Over Mailing That Revealed HIV Meds
Health insurer Aetna has agreed to pay $17 million to settle claims that it breached the privacy of thousands of customers who take HIV medications. Attorneys for the plaintiffs announced the settlement Wednesday in Philadelphia. Court documents say the Hartford, Connecticut-based company sent a mailing in envelopes with large, clear display windows that revealed confidential HIV information. The mailing was sent to about 12,000 customers in at least 23 states. (1/17)
NPR:
Aetna Settles Suit Brought By People Whose HIV Status Was Disclosed In Mail
"Through our outreach efforts, immediate relief program and this settlement we have worked to address the potential impact to members following this unfortunate incident," Aetna wrote in a statement. "In addition, we are implementing measures designed to ensure something like this does not happen again as part of our commitment to best practices in protecting sensitive health information." (Gordon, 1/17)
