TRS to Stop Offering Long-Term Care Plans
The TRS plans to stop offering long-term care insurance plans when the system’s contract with Genworth Life Insurance Co. ends on Aug. 31, 2021, TRS Chief Health Care Officer Katrina Daniel told TRS board members (webcast).
TRS has already given the company a required 31-day deadline to stop marketing new plans to members, she added. TRS first began offering long-term care plans under a contract executed with Genworth in 2009.
Daniel said Genworth has become the only major provider of long-term care insurance in the nation. She listed these reasons for the decision to recommend that the system stop offering these plans (which are described in this brochure):
- Issues with Genworth, including the fact the company has pending with the Texas Department of Insurance a request for a significant rate increase — and because the company underwent a staff restructuring recently that affected its account with TRS “quite a bit.”.
- The fact that the plans have not been popular with TRS members. About 7,200 TRS members have purchased long-term plans via TRS since the program’s inception, and only about 4 or 5 members typically purchase the plans each month.
Daniel also noted that the state’s employee retirement system (ERS) and the California public employees retirement system (CalPERS) have already stopped offering long-term care plans.
Daniel said that TRS members who bought policies via the system’s liaison with Genworth will continue to have individual policies — and individual relationships — with the company, but could be subject to increases in premiums and changes in benefits once TRS’ contract with the company ends.