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Pallone & Waxman Seek Justification for Rate Hikes
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Washington, D.C. - U. S. Rep. Frank Pallone, Jr., chairman of the House Energy & Commerce Health Subcommittee, and U.S. Rep. Henry Waxman, chairman of the House Energy & Commerce Committee, on Wednesday sent the attached letter to the insurance companies listed below as part of the investigation into the dramatic rate hikes for long-term health insurance:
American General Life Insurance Company, Penn Treaty American Corporation, Physician’s Mutual Insurance, Lincoln Financial Group, Conseco/Senior Health Insurance Company, MetLife of Connecticut, MedAmerica Insurance Co., and Allianz Life Insurance Company of North America.
September 29, 2010
Dear :
The Committee on Energy and Commerce and its Subcommittee on Health are examining reports that premiums for some long term care insurance plans are increasing by as much as 30% this year in New Jersey.
Consumers deserve to know the justification for these substantial rate increases. Some long-time policy holders faced with these record increases may be unable to pay for their coverage and could therefore lose access to their long term care insurance benefits despite paying premiums for years.
To assist the Committee with its examination of these premium increases, we request that you provide the following information and documents related to the New Jersey market:
1. A table listing all proposed premium increases from January 1, 2005 through the present for long term care insurance products offered by American General Life Insurance Company, or any of its subsidiaries, including in the table the amount of the proposed premium increase, the company requesting the increase, and a detailed explanation of the reasons for the increase, and the amount of increase ultimately approved by the New Jersey Department of Banking and Insurance.
2.Examples of all marketing, sales or any other materials concerning long term care insurance products provided to potential customers between January 1, 2005 and the present.
3. All documents submitted to the New Jersey Department of Banking and Insurance, or any other regulatory agency, relating to proposed rate increases for long term care insurance products from January 1, 2005 through the present.
Please produce the requested information by Monday, October 18, 2010. An attachment to this letter provides additional information about responding to Committee document requests.
Sincerely,
Henry A. Waxman Frank Pallone
Chairman Chairman
Subcommittee on Health
cc: The Honorable Joe Barton
Ranking Member
The Honorable John Shimkus
Ranking Member
Subcommittee on Health |
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