News for the August Digest

Long-Term Care Insurance: States Protect, Educate Consumers
Four members of the National Association of Insurance Commissioners (NAIC) testified today before the Oversight and Investigations Subcommittee of the U.S. House Committee on Energy and Commerce at a hearing titled, “Long-Term Care Insurance: Are Consumers Protected for the Long Term?” Wisconsin Insurance Commissioner Sean Dilweg, Florida Insurance Commissioner Kevin McCarty, New York State Insurance Superintendent Eric Dinallo and Washington State Insurance Commissioner Mike Kreidler described the efforts of state insurance regulators to ensure that long-term care insurance remains affordable over the life of a policy and that benefits delivered by policies remain meaningful when claims are filed.

Kerry-Grassley Bill Increases At-Home Care For Those In Need
As millions of Americans face significant challenges when it comes to caring for loved ones who needs significant support, Sens. John Kerry (D-Mass.) and Chuck Grassley (R-Iowa) today introduced the Empowered at Home Act.” The bill seeks to increase access to home and community based services by giving states new tools and incentives to make these services more available to those in need. “Far too many elderly or disabled Americans can’t get the help they need in their home and community,” said Sen. Kerry. “Home- and community-based services are high-quality, cost-effective, and help many people live independent lives, but Medicaid continues to favor nursing homes. It’s a problem when the nation’s largest purchaser of long-term care services is tilted towards nursing homes rather than home and community based services.

Adding Long-Term Care Benefit to Medicare Is Best Way to Ensure Affordability for Families, Say Health Care Opinion Leaders
Adequate financing for long-term care, improving the quality of long term care services, and developing an adequate, skilled workforce are some of the urgent challenges facing long-term care in the future, say four of five respondents to the latest Commonwealth Fund/Modern Healthcare Health Care Opinion Leaders Survey. Nearly four of five (79%) respondents favor or strongly favor adding a long-term care benefit to Medicare, financed by a premium, to pay for care. More than two-thirds (69%) of respondents to the survey believe it is very important (41%) or important (28%) that the health reform plans of the presidential candidates address the quality and financing of long-term care.

New long-term care plans protect life savings
There’s a new way in Missouri and Kansas to shield your life savings from the continuing rise in nursing home costs. Beginning in August, Missouri consumers who buy state-approved long-term care policies from companies participating in the new program won’t have to spend family savings down to near-poverty levels to get state Medicaid help if their care costs more than their insurance pays. The program, called Long Term Care Partnerships, has been available to Kansas consumers since April. About 16 other states have similar public-private pacts, and about 18 more are considering them. Backers say the plans provide an additional safety net for consumers and, by encouraging more people to buy insurance, save taxpayers a bundle.

Hancock Joins Fall Prevention Study
LifePlans Inc. has picked John Hancock Life Insurance Company to help with a study on ways to improve older Americans’ health. Researchers at LifePlans, Waltham, Mass., will be working with Hancock, Boston, a unit of Manulife Financial Corp., Toronto, to develop and test strategies for keeping older people from falling. Researchers estimate fall injuries involving Americans ages 65 and older cost the country about $35 billion per year, Hancock says. The U.S. Department of Health and Human Services hired LifePlans to conduct fall prevention research in an effort to improve older Americans’ lives and reduce the amount of federal and state dollars going to treat fall injuries.

Genworth Financial Reports Second Quarter Net Operating Income Of $0.49 Per Diluted Share - Loss From Continuing Operations of $0.25 Per Diluted Share
Genworth Financial, Inc. today reported a loss from continuing operations for the second quarter of 2008 of $109 million, or $0.25 per diluted share, compared with income of $321 million, or $0.72 per diluted share, in the second quarter of 2007. Net operating income for the second quarter of 2008 was $212 million, or $0.49 per diluted share, compared to net operating income of $351 million, or $0.78 per diluted share, in the second quarter of 2007.

DHS taking over senior care program
The state Department of Human Services is taking over a program that allows the elderly who need nursing home care to remain in their homes. DHS had been paying Tulsa-based Long Term Care Authority $5 million to administer the ADvantage Waiver program but the two could not reach agreement on a new contract. Lance Robertson with DHS says the state agency plans to keep the program in Tulsa and hopes to hire current employees to continue running it. Long Term Care Authority Chairwoman Linda Johnston says the agency will now focus on its original plans of being a think tank and innovator for issues of long-term health care.