Why does the FLTCIP require underwriting?
The Long-Term Care Security Act, which established the FLTCIP, recognized that underwriting would be necessary. The law states, “Nothing in this chapter shall be considered to require that long-term care insurance coverage be guaranteed to an eligible individual.” Underwriting is necessary to ensure the long term health of the program. The premiums charged for insurance coverage must be competitive with private sector policies. If we guaranteed standard coverage to all individuals who applied, we would have to add the expected costs of those in poor health to the premiums charged for coverage under the FLTCIP.
