James Ryan

James Ryan, president of Lenox Long Term Care, an industry broker, called Darras' statements "a great parallel." The industry is now experiencing what happened in the disability market about 20 years ago, he said.
...
However, there is a difference in that long-term-care carriers didn't make the mistake disability carriers made, said Ryan. Long-term-care insurers "gave themselves an out" by being able to raise rates, while disability insurers didn't have that option, he said.

James Ryan, president of Lenox Long Term Care, offers suggestions.Copyright (c) 2005 ROO Media Pty Ltd.All rights reserved.http://www.thestreet.com/video/index.html?channel=Personal+Finance
&clipid=1373 10359707Wed, 30 May 2007 23:30:00 PST

"You don't want to make those decisions in a bubble," says James Ryan, president of Lenox Long Term Care, a broker in New York City.

James Ryan, president of Lenox Long Term Care, an industry broker, called Darras' statements "a great parallel.
...
However, there is a difference in that long-term-care carriers didn't make the mistake disability carriers made, said Ryan. Long-term-care insurers "gave themselves an out" by being able to raise rates, while disability insurers didn't have that option, he said.

James Ryan, president of Lenox Long Term Care, a New York-based industry broker, said many of the problems are coming from policies issued before 1996. Some of the first-generation policies were "disasters" because policy language was vague, with no standardized "benefit triggers," he said.

The Health Insurance Portability & Accountability Act of 1996, however, clarified benefit triggers on tax-qualified plans. If someone has such a policy, Ryan said he easily knows if that person's claim will be approved or denied by asking if the policyholder needs help with bathing or dressing, for example, for a period of 90 days. If they do, "I know that's going to be an approved claim," he said.
...
Overall, carriers writing long-term-care business today are writing very different business than what they wrote 10 years ago, said Ryan. Among other factors, products are more expensive, he said, noting rates have risen anywhere from 20% to 35%.

Today, he said he meets with people in their 50s or even 40s who want to buy policies because they're experiencing their parents' long-term-care issues. But 10 years ago, the buyers were 65 and older. A 50-year-old, though, most likely won't file a claim until 20 years down the road, meaning they're paying into the policy much longer, thus better for carriers, he said.

James Ryan, president of Lenox Long Term Care, a New York-based industry broker, said many of the problems are coming from policies issued before 1996. Some of the first-generation policies were "disasters" because policy language was vague, with no standardized "benefit triggers," he said.

The Health Insurance Portability & Accountability Act of 1996, however, clarified benefit triggers on tax-qualified plans. If someone has such a policy, Ryan said he easily knows if that person's claim will be approved or denied by asking if the policyholder needs help with bathing or dressing, for example, for a period of 90 days. If they do, "I know that's going to be an approved claim," he said.

Nevertheless, there are "serious problems" in the long-term-care insurance industry, said Washington state Insurance Commissioner Mike Kreidler, chairman of the National Association of Insurance Commissioners' market conduct and consumer protection committee. Part is due to the industry's "inadequate" perception of how the market would function, he said.
...
Overall, carriers writing long-term-care business today are writing very different business than what they wrote 10 years ago, said Ryan. Among other factors, products are more expensive, he said, noting rates have risen anywhere from 20% to 35%.

Today, he said he meets with people in their 50s or even 40s who want to buy policies because they're experiencing their parents' long-term-care issues. But 10 years ago, the buyers were 65 and older. A 50-year-old, though, most likely won't file a claim until 20 years down the road, meaning they're paying into the policy much longer, thus better for carriers, he said.

by Jim Ryan
...
Jim Ryan is president of Lenox Long Term Care, a division of Lenox Advisors, New York.He can be reached at jryan@lenoxadvisors.com