FOR IMMEDIATE RELEASE 
June 15, 2009 
Contact: Jason Moon  517-335-1700

LANSING - With health care costs rising and longer life expectancies, funding long-term care needs remains an increasing concern for millions of Michigan residents. The Office of Financial and Insurance Regulation (OFIR) today provided tips to consumers looking to help them make more informed decisions about long-term care insurance. OFIR Commissioner Ken Ross is also featured in a statewide public service announcement (PSA) concerning long-term care insurance that will begin airing soon.

“Deciding to purchase long-term care insurance requires a hard look at family health history and personal finances,” Ross said. “Sorting out all the options can be confusing, so we’ve developed tips for consumers to consider before purchasing long-term care insurance.”

OFIR’s Tips Regarding Long-Term Care Insurance:

• Long-term care insurance isn’t for everyone. If you are currently receiving Social Security or expect to have minimal or no retirement savings or assets, you may qualify for government assistance and probably shouldn’t purchase long-term care insurance.
• Research individual insurance companies to see whether they have a history of raising rates for long-term care coverage. A licensed insurance agent can give you an insurance company’s rate increase history. For a list of companies authorized to write long-term care insurance in Michigan, visit: http://www.michigan.gov/documents/dleg/LTC_cos_230366_7.pdf
• After checking with your financial advisor or accountant for guidance on whether long-term care insurance is appropriate for your specific financial situation—SHOP AROUND.  A variety of policies are offered by a number of companies, so spend some time shopping around for the most appropriate coverage at the best price.
• Make sure you understand what a long-term care insurance policy covers and just as importantly, what it doesn’t. If you have concerns about a company, contact OFIR toll-free at 877-999-6442.
• Pre-existing conditions, conditions that you have before you apply for the insurance coverage, may be excluded from coverage. In addition, for some policies, age 60 is a trigger for a rate increase. Thus, it may be beneficial to purchase your policy before your late 50’s.
• If you can, don’t rely on Medicare or Medicaid to cover your long-term care needs. Medicare will usually pay for a small percentage of nursing home costs. Medicaid pays for long-term care services but only if you meet federal poverty guidelines, and the choice of care facilities can be very limited.

In the PSA, Ross reminds consumers that unbiased assistance about long-term care choices is available from OFIR. It was produced by the National Association of Insurance Commissioners (NAIC) and has been sent to more than a dozen television stations in Michigan

The theme of the PSA is the “long-term care insurance game.” As players move game pieces around the board, they draw situation cards that have serious consequences. The call to action is that long-term care insurance is NOT a game — and that consumers with questions should call OFIR’s toll-free hotline at 877-999-6442.

The PSA video is available at: http://www.michigan.gov/documents/dleg/MI_LTC_3_5_282473_7.wmv

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