Moody’s recently painted a predictably glum future for the long-term care insurance (LTCi) industry, calling it “uncertain...as it may be difficult for firms to profit from the product.”
Laura Bazer, a Moody’s vice-president, described the challenges facing the 40-year old product line. "The relative newness of LTCi and the long-tailed and complex product structure...make it difficult to price...profitably," Bazer said.
Neither Medicare, Medicaid, the VA, nor any other “pay-as-you-go” funding mechanism is prepared to absorb the Age Wave. (Shall we even mention CLASS, which counted its “reserves” as Affordable Care Act revenue?)
For some reason, observers are positively confounded and hung-up on the number of carriers writing new LTCi business.