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South Carolina Official Blasts LTCI Issuer Rehab Plan | ThinkAdvisor
The Pennsylvania SHIP rehab plan calls for a state’s insurance regulators to opt in to the plan or opt out.
If South Carolina opts in, Pennsylvania can let SHIP raise rates in South Carolina, and, in some cases, premiums might increase more than 500%, Farmer said.
If South Carolina opts out, SHIP could reduce benefits for South Carolina policyholders with approval from South Carolina regulators, he said.
“We do not believe Pennsylvania has authority to raise rates or lower benefits for South Carolina consumers,” Farmer said.
The Pennsylvania SHIP rehab plan calls for a state’s insurance regulators to opt in to the plan or opt out.
If South Carolina opts in, Pennsylvania can let SHIP raise rates in South Carolina, and, in some cases, premiums might increase more than 500%, Farmer said.
If South Carolina opts out, SHIP could reduce benefits for South Carolina policyholders with approval from South Carolina regulators, he said.
“We do not believe Pennsylvania has authority to raise rates or lower benefits for South Carolina consumers,” Farmer said.