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Long-Term Care Insurance: Risks to Consumers Should Be Reduced

HRD-92-14 Published: Dec 26, 1991. Publicly Released: Dec 26, 1991.
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Highlights

Pursuant to a congressional request, GAO reviewed long-term care insurance policies, focusing on: (1) the extent to which state standards and long-term care insurance policies meet the National Association of Insurance Commissioners (NAIC) standards; (2) whether such standards and policies adequately address consumer protection issues; and (3) whether minimum federal standards are needed.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
If states do not wish to adopt NAIC standards, Congress may wish to consider enacting legislation that sets minimum federal standards for long-term care insurance.
Closed – Implemented
The Health Insurance Portability and Accountability Act, signed into law on August 21, 1996, provides tax breaks for long-term care insurance policies that meet minimum federal standards. Most of the standards set forth in the Act are based on those developed by the National Association of Insurance Commissioners (NAIC).

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Topics

Consumer protectionEligibility criteriaHealth care cost controlHealth insuranceHealth insurance cost controlInsurance companiesInsurance premiumsInsurance regulationState programsLong-term care insurance