10/25/2012

FOR IMMEDIATE RELEASE

CONTACT:         Adam Sachs-781-446-5006

Governor Deval Patrick Signs Long-Term Care Insurance Standards Bill into Law

Discusses Long-Term Care Insurance Standards Bill

Boston, MA ― Governor Deval Patrick signed S2359 into law today in Massachusetts, capping a long effort by the National Association of Insurance and Financial Advisors (NAIFA) Massachusetts to strengthen state regulations pertaining to long-term care insurance.

The new law has several provisions pertaining to long-term care insurance.  The law establishes guidelines for long-term care insurance consistent with those set forth in the National Association of Insurance Commissioners (NAIC) Long Term Care Insurance Model Act and allows Massachusetts to join 46 other states who have already adopted the NAIC LTCi Model Act. In addition, rate stabilization language would provide expanded consumer protection.  Also, the new law amends the amount of coverage required in the Mass Health/Medicaid Lien Exemption. This changes the amount of coverage necessary to provide lien protection from "upon entry to a nursing home" to "when the policy was purchased". The real benefits of the bill are that families can keep their loved ones at home longer, it reduces dependency on Medicaid and it provides better options for advisors recommending long-term care insurance.

“NAIFA is especially thankful for the leadership of Senator Chandler throughout this process,” said NAIFA Massachusetts Government Relations Chair, Adam Sachs. “We are so pleased to have been able to work so closely together and achieve a result that will truly help the citizens of Massachusetts and the Commonwealth itself.”

NAIFA Massachusetts is an organization that has nearly 800 members statewide who are licensed insurance agents and financial advisors who focus their practices on one or more of the following: long term care insurance, disability insurance, life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. Its mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of our members.

This bill was sponsored by State Senator Harriette Chandler (D), who has been recognized as NAIFA’s “Legislator of the Year” in Massachusetts and it was Co-Sponsored by Representative Ronald Mariano (D) in the House of Representatives. Read a summary of the legislation here.

About NAIFA: About NAIFA: NAIFA comprises more than 700 state and local associations representing the interests of approximately 50,000 agents and their associates nationwide. NAIFA members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. The Association’s mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members.