Why is Standardization for Long Term Care Policies Needed?

Standardization among Long Term Care Insurance policies is needed as many complications have arisen due to inconsistent policy language amongst carriers. It was, and still is, very difficult for a consumer to compare policies between carriers when variations in coverage language do not allow for a true apples to apples comparison.

In the 1980’s / 1990’s when many insureds first purchased Long Term Care Insurance Policies, there was very little standardization in policy terms. For example, some long term care insurance policies clearly cover assisted living facilities while others have coverage that is less clear. Insurers often take advantage of this unclear “murky” language to avoid coverage – causing many headaches and coverage issues today. If all policy language had been standardized from the start, the available coverage would likely be more clear to consumers, and decisions of policy interpretation on the universal policy language from reviewing courts could be relied upon by all policyholders.

The consequence of wide variations in policy language is uncertainty for many policyholders as to what their policy will actually cover when they need it.

Democratic presidential candidate, Pete Buttigieg proposed a plan for securing long-term care at Morehouse College Ray Charles Performing Arts Center on Nov. 18, 2019 in Atlanta, Georgia. The plan, “Dignity and Security in Retirement,” aims to strengthen the long-term care insurance market by, in part, standardizing the policy language of long term care insurance plans. This set of policy proposals will ensure that older Americans will have affordable care after retirement, and reduce the uncertainty of what their policy will actually cover. 

It is vital to understand a policy’s fine print before a claim is submitted. At the Law Offices of Sean K. Collins, we strongly advise consulting an experienced long term care insurance attorney prior to filing a claim.  If you or someone you know needs assistance filing a claim, or understanding the benefits available under their policy, please contact us for a free consultation.