Rising Long-Term Care Insurance Premiums Spark Concern
ROCHESTER, N.Y. — Following reports of significant increases in long-term care insurance premiums, many individuals have reached out to inquire about potential solutions. Chief investigative reporter Barclay Breen spoke with Nancy Helfrich, who recently completed her radiation treatment.
Nancy, a resident of Dansville, received a diagnosis of multiple myeloma a month ago. After watching a story about Anita and Dom Palozzi from Greece, who are facing a staggering 179% rise in their premiums over four years, she felt compelled to speak up.
Berkeley Breen, News10NBC: “Can you manage that cost?”
Anita Palozzi: “No.”
Nancy noted significant hikes of 44%, 174%, and 252% in premiums after meeting with her insurance representative. She expressed disbelief at the near 100% increase she was facing.
“It was quite a shock to see that increase,” she said, referencing her experience.
In New York State, laws are in place to protect long-term care insurance premiums. For those struggling with steep rate hikes, it’s advisable to consult with their insurance agents. If one decides to let their coverage lapse, they can still retrieve the funds they’ve invested up to now—around $20,000 in Nancy’s case.
“I was relieved that the law allows you to reclaim what you’ve put in,” Nancy noted, seeing it as a viable option.
Berkeley Breen: “Is the system currently facing issues?”
Jesse Slome, Director, Long Term Care Insurance Association of America: “No. The decisions they’re facing aren’t impossible.”
Jesse Slom, a board member of the American Association for Long-Term Care Insurance, explained that notification of rate hikes often comes with various options. For instance, while the Palozzis’ current plan raises premiums by 179%, there exists an alternative that could lessen the increase by over $1,000.
“They always provide choices,” Slom said. “Most individuals choose one option or another.”
According to one insurance agent, it’s crucial for clients to evaluate their options before allowing insurance to lapse. Roughly 370,000 people in New York currently hold long-term care insurance.
