Long-Term Care Insurance:

Actions Needed to Reduce Risks to Consumers

T-HRD-92-44: Published: Jun 23, 1992. Publicly Released: Jun 23, 1992.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed its recent studies of long-term care insurance. GAO noted that: (1) many consumers are vulnerable to considerable risks in purchasing long-term care insurance because states have not adopted optional standards drafted by a national insurance industry association; (2) insurance companies have adopted the standards more quickly than states, but most policies reviewed did not meet the standards, particularly regarding disclosure and inflation; (3) the standards do not sufficiently address such features of long-term care insurance as policy terminology, definitions, and eligibility criteria; (4) consumers face considerable financial risks from insurance companies' periodic adjustments of prices, which can result in price increases that make it difficult for consumers to retain their policies; (5) without certain standards, consumers are limited in their policy upgrade options; and (6) insurance companies do little to prevent the sale of long-term care insurance to consumers that can not afford it.

Nov 21, 2016

Aug 10, 2016

Jul 14, 2016

May 26, 2016

Apr 14, 2016

Apr 11, 2016

Mar 21, 2016

Feb 8, 2016

Jan 27, 2016

Nov 16, 2015

Looking for more? Browse all our products here