Prudential to discontinue individual long-term care insurance policies

Share this article:

Insurance stalwart Prudential Financial announced Wednesday that it is exiting the long-term care insurance business.

Prudential, the second largest insurance company in the United States, joins the ranks of other top LTC insurers, including MetLife and Unum in leaving the sector. Prudential will instead focus on providing group LTC insurance while it discontinues sales of individual LTC policies, the company said in a statement. Prudential company says it promises to honor all existing LTC policies and contracts.

Insurance industry analysts worry that as more companies exit the LTC insurance market, consumers will have fewer LTC options. This, in turn, could put pressure on Medicaid, which accounts for roughly 40% of all LTC services. According to the Department of Health and Human Services, more than 40% of people over 65 will need nursing home care.

It is unclear when Prudential will officially cease selling individual LTC policies.

 

Share this article:

More in News

A small team of workers responds best in emergencies, expert says

A small team of workers responds best in ...

Long-term care providers should consider a "flat" crisis management approach that relies on a core group of staff members, experts advised Wednesday at the LeadingAge annual conference.

Nursing homes have better pain and catheter management if leaders have more ...

Nursing homes led by administrators and directors of nursing with higher levels of education and certification have better outcomes on some key quality measures, according to recently published findings.

Court green-lights charges that a healthcare network underused observation stays

A whistleblower can continue to pursue charges that a Nevada healthcare network routinely admitted people as hospital inpatients when they should have been placed in observation status, a federal appeals court recently ruled.