---
title: Bipartisan Policy Institute discusses LTC Financing Reform
description: Bipartisan Policy Instiute discusses LTC finacng refrom.
---

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Apr 8, 2014 • [LTCI Partners](https://www.ltcipartners.com/blog/author/ltci-partners)

## Bipartisan Policy Institute discusses LTC Financing Reform

- [For financial professionals](https://www.ltcipartners.com/blog/topic/for-financial-professionals)

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Two Democrats and two Republicans - Tom Daschle, Alice Rivlin, Bill Frist and Tommy Thompson - are leading a bipartisan effort to put a focus on LTC financing.  You can view the initial 75-minute video presentation which includes remarks by the Genworth CEO below.* (Note:  The video was recorded off a live streaming session and there are video problems at the 40 minute mark - but audio works fine.)*

The initiative is through bipartisanpolicy.org and they've created a white paper which can be downloaded [here ](http://bipartisanpolicy.org/sites/default/files/BPC%20Long-Term%20Care%20Initiative.pdf)  

  

One topic the white paper discussed was how to reform LTC Insurance - and the role it plays. Here is an excerpt from the report.

*No one would argue that the private long-term care insurance (LTCI) market, as currently *  
*structured, is a viable solution to address the needs of the diverse population in need of *  
*LTSS. Among other financial challenges, such as the current low-interest-rate environment, *  
*LTCI has struggled to find a viable risk pool. As with traditional health insurance coverage, *  
*the current voluntary system for private long-term care insurance has encountered adverse *  
*selection, driving up premium costs, and resulting in strict medical underwriting by insurers. *  
*The Affordable Care Act (ACA) addressed medical underwriting in the health insurance *  
*market by requiring individuals without other qualified coverage to purchase coverage or *  
*pay an assessment to assure a viable risk pool. While a potential policy approach for LTC, *  
*BPC does not believe that guaranteed issue paired with a requirement to purchase coverage *  
*is a solution that can be pursued in the post-ACA political environment. Likewise, recent *  
*experience with the enactment and repeal of the CLASS Act might suggest that a voluntary *  
*public option would have little support among policymakers in the current environment. *  
*However, a reformed private long-term care insurance market can be part of the solution in *  
*financing LTSS, and BPC seeks input on how to restructure the market. *

 

---

*• What is the role of the private long-term care insurance market? *  
*• What reforms should be enacted to encourage carriers to remain in the market and *  
*encourage additional carriers to enter? *  
*• How should products be structured to achieve this goal?*

 

- *Should products be structured and regulated similar to Medigap, with limited choices, **or should the market be left flexible to address purchaser choice and market **innovation? *

*• How should products be made available to individuals? Through the current system *  
*of brokers and sales representatives, through employers, through retirement (IRA, *  
*401[k], etc.) account servicers, through health insurance exchanges, or through *  
*other options? *  
*• Should LTC insurers be expected to better manage services, similar to health *  
*insurers, as opposed to paying claims or establishing per-diem payments? *  
*• Could a non-insurer provider-sponsored model work for LTSS, and if so, how could *  
*solvency issues be assured? *  
*• Are additional consumer protections needed, and if so, what would they include? *  
*• What impact has existing consumer protections had on product design, availability, *  
*and affordability? *  
*• In a political environment that is trending toward fewer deductions and preferential *  
*tax treatment, can or should the current structure of state regulation with certain *  
*federal minimum standards for tax-preferred policies be maintained? *  
*• Would a voluntary structure work if framed to be similar to employer-sponsored *  
*retirement-savings options and disability insurance (i.e., auto-enrollment with an *  
*opt-out)? *  
*• If so, how would one address the issue of affordability for those who cannot afford *  
*coverage? *  
*• Could some form of reinsurance improve the viability of the LTCI market, in general, *  
*and the viability of policies with catastrophic (lifetime) coverage, in particular? *  
*• How could reforms that increase the role of private LTCI in financing LTSS reduce the *  
*incidence of spending down to Medicaid eligibility for individuals and families and *  
*reduce public spending on Medicaid?*

 This will be interesting to see what comes out of this organization.

## Written by [LTCI Partners](https://www.ltcipartners.com/blog/author/ltci-partners)

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