Delaware Insurance Commissioner probes long-term care insurance rate hikes
The Delaware Insurance Department launched an investigation Thursdayinto whether insurers exceeded set policy rate increases for a type ofinsurance widely held by senior citizens.
Insurance CommissionerMatt Denn said some companies promised customers one annual rate andlater increased prices as much as 40 percent for long-term careinsurance, which covers a wide range of services, including costlystays in nursing homes and assisted-living facilities.
Long-termcare insurance providers are required by law to promise a set rateincrease on the front of a policy and stick by it, Denn said. Companiescan be fined as much as $10,000 for overcharging policyholders. Dennsaid his office will review all rate increases in long-term carepolicies over the last two years.