Existing policyholders will not be affected.
In an announcement released to agents and distributors today, MedAmerica president, Bill Naylon cited the continuing difficult economy and environment for LTC insurance.
Sales of all NEW policies - both long-term care and MedAmerica's "Transitions" short-term care products - will end February 15, 2016.
The decision has no immediate impact on existing policyholders - myself included!
It is our opinion at Comfort Long Term Care that it is NOT in the best interest of our clients to replace their LTC (or STC) coverage with MedAmerica at this time, if ever. MedAmerica remains well-capitalized with a full, binding commitment from its parent company - a billion-dollar upstate NY Blue Cross/Blue Shield - to back all of its liabilities.
The news media is sure to make this sound like the entire LTC insurance industry is collapsing, but it is not. This is a continued natural progression of the consolidation that has been underway for several years. The same thing happened with individual disability insurance in the mid-1990s. There are now just 10 or so companies selling disability insurance, yet it remains profitable for those companies and vital for working-age clients.
Please Contact Us with any questions, if you are approached about replacing your coverage, or if you would like to review your coverage through MedAmerica.
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