The New York Times (free registration) reports that Congress is putting the long term care insurance industry “under scrutiny.†The House Committee on Energy and Commerce is investigating long term care insurers Conseco and the Penn Treaty American Corporation.
It seems that certain long term care insurers are making policyholders jump through hoops to have their claims paid. Congressman John Dingell of Michigan told the paper that “We have two companies that seem to be engaging in questionable practices, and we have every reason to think we will turn up other companies engaged in questionable practices. Now that we’re aware this is occurring, we’re going to shine a light on it that won’t be extinguished.â€
With people living longer and baby boomers entering long term care, whatever issues Conesco and Penn Treaty American Corporation have with paying claims likely will get worse. The investigation is coming at the right time.