Group LTCI and Federal Legislation

1
Group LTCI and Federal Legislation

• Session 36
• Tuesday, February 28, 2006
• Session Producer
• Jeremy Pincus, Principal
• The Forbes Consulting Group, Inc.

2
PANEL

• Robert Blancato, President, Matz, Blancato
  Associates
• John Greene, Director of Federal Affairs,
  National Association of Health Underwriters
• David Martin, Corporate Secretary and General
  Director, LTC Contracts Legislative Services,
  John Hancock
• Roy Gosselin, CLU, Assistant Vice President, Long
  Term Care Division, MetLife

3
AGENDA

• Overview of Legislative Activity (Blancato)
• Long Term Care Insurance
• Medicaid Reform
• Recommendations from WHCOA

4
AGENDA

• Expectations for Group LTCI Industry (Greene)
• Near Term
• Long Term

5
AGENDA

• Preparing for changes to group and multi-life
  LTCI products
• (Martin Gosselin)
• Partnership Expansion
• Section 125
• Others

6
Additional Insight

• The following slides submitted by
• John Cutler

7

• Unfortunately, John Cutler is not able to
  participate at the ILTCI in person. John,
  however, has provided significant insight
  throughout the preparation for this session and
  has given permission to share his insight into
  the mood in Washington and its effect on GLTCI.

8

• Health-based federal legislative proposals are
  distinguished from retirement security issues
  which is the other way the Congress and
  Administration often look at LTCi

9

• LTC Partnerships YES, we finally have language
  that reverses the Waxman amendment and allows
  the Partnerships to expand into all the states

10

• LTC Partnerships the provisions of law are in
  S. 1932 but will still need the development of
  regulations by CMS (in consultation with NAIC)
• Technical corrections possibility via Congress,
  as well

11

• Administration views including potential CMS
  regulatory solution to uniformity/portability
  will be important, especially if it can be done
  via the Medicaid waiver authority and not through
  the state insurance departments

12

• FLTCIP experience relevant here in that we
  negotiated with the four states to no avail. We
  both wanted uniformity but we wanted uniform
  products across the states and they wanted it
  inside of their state by all of the different
  carriers

13

• Other parts of Reconciliation Bill of interest
  Impact of estate planning, asset protection,
  look-back period changes the environment in which
  you are selling insurance

14

• Other parts of Reconciliation Bill of interest
  National Long Term Care Information Clearinghouse
  would be set up by HHS (likely CMS and AoA in
  concert)

15

• Other players that will impact the future of
  Medicaid should be on your radar screen
  principally the Administrations Medicaid
  Commission and the National Governors Association
• And dont forget Medicare-related ideas

16

• Other health-related notions like HSAs also will
  have some impact on how long term care insurance
  is delivered

17

• And Section 125 could well pass one of these days
  cheaper than the above-the-line deduction and
  more in tune with the way Congress looks at group
  benefits

18

• Possible next step by Congress -- National
  regulatory standards or maybe even a new federal
  regulatory agency as has been done in interstate
  banking (and favored by ACLI)

19
What Will the Future of Group Long-Term Care Look
Like?

• Employers will be mad that employees were sold
  non-compound products and do not have sufficient
  coverage when they get to time of claim (and come
  to the employer for redress) this will be the
  next big fight with the regulators