Menu Search Account

LegiStorm

Get LegiStorm App Visit Product Demo Website
» Get LegiStorm App
» Get LegiStorm Pro Free Demo

Long-Term Care Insurance: Actions Needed to Reduce Risks to Consumers

  Premium   Download PDF Now (13 pages)
Report Type Reports and Testimonies
Report Date June 23, 1992
Report No. T-HRD-92-44
Subject
Summary:

While the National Association of Insurance Commissioners (NAIC) has developed model standards for selling long-term care insurance policies, consumers are still vulnerable for several reasons. First, many states and insurance companies have not adopted all NAIC standards. Second, several features of long-term care insurance with important consequences for consumers are poorly addressed by the standards. Third, low-income individuals have purchased policies even though such policies are expensive and the people may already be covered by a program like Medicaid. Companies that GAO reviewed do little to prevent the sale of this insurance to low-income individuals. GAO believes that additional standards are necessary. If states do not adopt the NAIC standards, Congress may want to pass legislation setting minimum federal standards for long-term care insurance.

« Return to search Government Accountability Office reports