"Unaffordable Care" from Metlife--the Educators' Friend

[debmantia]

I have received a letter from Metlife dated 9/10/2014 stating a 102% premium increase on my LTC policy. Options significantly reduce coverage-- with a 60-80% increase. Coverage change forms are required by 10/10/2014. No reasons for the increase were given.

I called Metlife on 9/15 and spoke with agent Rhonda who informed me the company had applied to IDOI for a 58% increase and had been cleared for a 102%--NOT true per Metlife's 8/20/14 phased implementation. I also spoke with AARP which had the same information and suggested I check with governor et al to see how they feel about being blamed for Metlife's genocidal choices.

I am 67 and I cannot sustain this increase; nor can most other seniors. This is unconscionable on the part of Metlife and even more so, the state of Illinois. Metlife is an educators' policy, and I would hope educators are not a group to alienate--certainly not at election time. On behalf of its already beleaguered seniors , educators and residents, Illinois needs to address and redress this atrocity.

I have filed a complaint with DOI, and contacted IEA, the governor's and inspector general's offices , my state and US reps, and AARP. As of 10:00 this morning, AARP had received more than 60 calls from Illinois policy holders. Other than fleeing the state, is there any recourse?

 

[Arthur Rudnick]

Debmantia,
We all feel your pain. MetLife and just about every LTC company has filed and been approved for many exhorbitant rate increases over the past few years. I just got off the phone an hour go with a policyholder of mine that was complaining about a 100% rate increase from another company.

Most increases that were approved in various states have been much less, below 50%. But, you and a vast number of other policyholders have been hit with much higher increases.

There's really nothing that I nor the LTC community can say to sugarcoat what you're dealing with. There are legitimate reasons why companies request rate increases, mostly to do with the company having enough in Reserve Funds so there is money available down the road when policyholders go on claim. And, that's a good thing.

But, at the end of the day, your state's Insurance Department thought that MetLife's request was valid and they approved the increase. You can check with AARP, you can check with MetLife, you can check with the Governor and/or the Inspector General and nothing is going to change. The Illinois Department of Insurance has the final say and they have spoken.

So what do you do?
After you calm down, think about this:
The reasons that you purchased a LTC policy in the first place are the exact same reasons that you should keep your policy going forward. If the increase is unaffordable you need to reduce your premium to an amount that you're comfortable with.

Reduce your benefit period (3 years would be adequate) and/or reduce your daily benefit. Also if not at 100 or 90 days change your Elimination Period to that amount.

Keep in mind that with your policy, you'll most likely never going to enter a nursing home. If you ever required care you'll stay at home and the costs of home care are usually substantially less than the cost of a nursing home.

I wish I could tell you what you want to hear and that's if you yell loud enough, you'll get MetLife to reconsider.

Unfortunately, that won't happen.

 

[ltcadviser]

I have received a letter from Metlife dated 9/10/2014 stating a 102% premium increase on my LTC policy. Options significantly reduce coverage-- with a 60-80% increase. Coverage change forms are required by 10/10/2014. No reasons for the increase were given.

I called Metlife on 9/15 and spoke with agent Rhonda who informed me the company had applied to IDOI for a 58% increase and had been cleared for a 102%--NOT true per Metlife's 8/20/14 phased implementation. I also spoke with AARP which had the same information and suggested I check with governor et al to see how they feel about being blamed for Metlife's genocidal choices.

I am 67 and I cannot sustain this increase; nor can most other seniors. This is unconscionable on the part of Metlife and even more so, the state of Illinois. Metlife is an educators' policy, and I would hope educators are not a group to alienate--certainly not at election time. On behalf of its already beleaguered seniors , educators and residents, Illinois needs to address and redress this atrocity.

I have filed a complaint with DOI, and contacted IEA, the governor's and inspector general's offices , my state and US reps, and AARP. As of 10:00 this morning, AARP had received more than 60 calls from Illinois policy holders. Other than fleeing the state, is there any recourse?

Illinois approved 90% for Hancock.

Just not a good resident state for consumers.

Connecticut much better.

No recourse Deb.

 

[rayluk]

First off, I am sorry to see you are going through the same dilemma many others are facing. I will be pissed as a consumer.

Second, I doubt fleeing the state will help.
It sounds like you have a group policy for teachers. I am not licensed in your state so I cannot say for sure. Though I have seen in CA (CalPers and CalSTRS), the rate has gone up 4 times for existing policy holders last I remembered. Similar things have happened to Fed employees, though not as bad as CA. So you are not alone!

You might even look at other options. The LTCi products have evolved over time to provide better and more comprehensive benefits. Older contracts may not provide the needed benefit, i.e. in home services. Very often, I will structure the planning with multiple policies, i.e. lower recurring premium policy with a longer elimination period, say 1 year; and paired with a richer policy but shorter benefit period, or even a single pay policy.

Bottom line is, talk to someone who is an expert in this area and check out your options. We do not know what future holds. We hope we don't need to use the policy, but we feel responsible for our own future. So we plan and do our best. Kudos to you and many others! Good luck!

 

[ltcadviser]

You might even look at other options. The LTCi products have evolved over time to provide better and more comprehensive benefits!

What are you smoking?

 

[rayluk]

Don't think I am smoking anything. Drink won't hurt though.

I meant the benefit, such as older policy used to only provide nursing home care. Not the cost of premium, if that is what you were thinking.

 

[ltcadviser]

Don't think I am smoking anything. Drink won't hurt though.

I meant the benefit, such as older policy used to only provide nursing home care. Not the cost of premium, if that is what you were thinking.

This is not the case in this situation. Nor is it the case in 99.9% of situations. The issue is a comprehensive policy marketed most likely between the years 1998-2007 has a 100% rate increase. The OP has no palatable options. Do you realize how ridiculously high premiums are today vis-a-vis policies sold 7-10 years ago? Compound that issue with age changes. It is impossible to start over with a new and better long term care plan. Even with a 100% rate increase. These are the facts.

 

[rayluk]

The point is to think outside the box beyond traditional recurring premium policy. In this case, they may consider taking reduced benefit on current policy and pair it with a single pay life policy with LTC rider, if they can qualify, and if they have asset they can reallocate. Of course, simply replace policy typically won't make sense.

 

[Arthur Rudnick]

previously posted by rayluk

The point is to think outside the box beyond traditional recurring premium policy. In this case, they may consider taking reduced benefit on current policy and pair it with a single pay life policy with LTC rider, if they can qualify, and if they have asset they can reallocate. Of course, simply replace policy typically won't make sense.

And you received your LTC training where?

 

[rayluk]

Now, do we really need to make this personal? Or should we share your opinion objectively... I would not mind learning if you have something valuable to share. Unless, we all think we know everything and we are always right.