Augusta, Maine – Long-term care insurance company Genworth has proposed a significant interest rate hike for policyholders in Maine, offering an incredible 233% increase from a staggering 1.8%. According to the state's health department, about half, or about 1,200 individuals, could face a maximum increase of 233%, due to the impact of these proposed hikes.
The Insurance Bureau held a public forum to discuss the proposal, highlighting that only “justified” increases will be approved. Susan Lamb, a policyholder at Jenworth, expressed concern, saying, “We want to take care of ourselves, but we don't think this is possible with a fee like this.”
Insurance Chief Bob Carey highlighted the challenges faced by older policyholders. “When you're 75 and you've been paying for over 20 years, it's very difficult. When your income hasn't doubled, you've been hit with doubled your premiums,” he said.
A Genworth spokesman explained in the forum that he experienced an increase in billing at a higher cost than initially expected. This is not the first time Genworth has proposed a major interest rate hike in Maine. In 2021, the company sought an increase of up to 178%.
