Long Term Care Insurance in Houston Rates Need to be State-Approved

by | Dec 4, 2015 | Insurance


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The demand for Long Term Care Insurance in Houston has increased, and that has caused a strain on insurance institutions that took on more than they could potentially handle. Prices are spiking across-the-board as the industry discovers what it takes to keep LTC reasonable as well as profitable.

What could families expect from their LTC prices in the future? There are some sweeping changes occurring now, but there are some common predictions that are shaping the industry. A certain price increase in the past may not necessarily dictate a price increase in the next few years.

Filing with the State

Insurance companies must register their price increase in LTC with the state regulators. The system is in place to protect families from monopolies and unfair price hikes that take advantage of a certain situation. State regulators have complied and collaborated alongside insurance providers both small and large. There are some states that are actively pushing back against policy companies that are facing decreased income from their LTC policies.

The Right Time Period

Importantly, it takes months to receive approval about a proposed price hike to Long Term Care Insurance in Houston. The price increases are also confined to a certain time period. For example, the companies request rates for policies from 2005 to 2010. The companies will focus on raising older policies. New policyholders can also receive an approved rate that will stand for a period of time (usually a year or 24 months).

All of the above may seem like unnecessary red tape, and that is partly true. But, it speaks to a bigger point. Visit website for more details. Just because a person faced a price increase in the recent past, they do not need to expect another in the future. It actually seems that a recent price increase may stall any increases in the next 48 months. Companies are often losing money on LTC policies, but they make it elsewhere. That greatly benefits families who are seeking LTC care while still looking for reasonable prices for the long-term. Nothing is set in stone, but price increases may be slowing down.

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