Delaware is establishing an Office of Long-Term Care Insurance to assist consumers in identifying services and coverage options offered in plans, determining waiting periods and total costs, explaining and verifying premium increases, and validating insurers’ licenses, according to the state regulator.
According to a report from AM Best, the new division will be part of the Delaware Department of Insurance and will be staffed by department employees. Earlier this month, more than 25 insurance department staffers completed a half-day training program on long-term care insurance assistance.
Delaware Insurance Commissioner Trinidad Navarro stated that these types of policies are “increasingly confusing and complex,” highlighting the need for the new unit.
The regulator noted the complexity of these plans, particularly the ability of long-term care insurers to offer reduced benefits options to offset premium growth. These options can include reducing the daily, weekly, or monthly benefit amounts, increasing elimination periods, and decreasing inflation protections.
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Navarro stated that the increased contact from residents has demonstrated the necessity of providing long-term care insurance support. He compared the new unit to the department's dedicated teams for home and auto insurance, health coverage, and Medicare assistance.
Christina Haas, senior policy advisor at the insurance department, said consumers will be able to connect with the LTCI staff via phone, email, or in-person events.
Haas emphasized a “no wrong door” approach and proactive advocacy, noting that Medicare Assistance Bureau staff can inquire if consumers also need assistance with long-term care insurance during their counseling sessions.
The new unit will not engage in regulatory activities; rates, forms, market conduct, and legal departments will continue to handle their designated functions for the LTCI market.
Haas said that improved consumer communication could lead to engagement with these teams if cases require relevant reviews.
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