In 2003, the Iowa Insurance Division (IID) foresaw the need to protect Iowans from uncontrollable long-term care insurance rate increases. Therefore, the IID enacted a Rate Stability Regulation effective February 1st, 2003. (Iowa Administrative Code 191—39.26 & 39.28)
Policies purchased in Iowa before February 1, 2003 are not protected by this regulation.
Policies purchased in Iowa after February 1, 2003 are protected by this regulation.
Those long-term care policies that have had premium increases, over 98% of them were issued before February 1, 2003. In other words, nearly every Iowan who purchased LTC insurance after February 1st, 2003, is paying the exact same premium today that they were when they first purchased their policy.
Why didn’t the staff of the Des Moines Register mention Iowa’s Rate Stability Regulation (and its success) in their editorial?
Scott A. Olson
P.S. Iowa as well as 40 other states (and the District of Columbia) have enacted a Rate Stability Regulation in order to protect consumers who purchase long-term care insurance today.