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Letter: Insurance hike is unjustified

March 04, 2009

Dear Editor,

Most insurance companies are reliable, and sometimes a reasonable increase in insurance premiums is justified. Even the most reasonable person would agree, however, that three increases over a six-year period, cumulatively totaling more than a 100 percent hike in premiums, would be unjustified, harmful and unconscionable.

That is what is being done to thousands of seniors and pre-retirees in Kentucky who bought long-term care insurance years ago from Life Investors Company of America, now called Transamerica.

State insurance regulators are supposed to protect the people of Kentucky from such practices by carefully screening requests for rate increases. It is pretty clear, however, that the Kentucky Department of Insurance doesn't see it that way. It apparently has never seen a rate increase that it doesn't like.

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Most long-term care insurance companies have had just one, modest increase. Transamerica's increases are unjustified when compared with the rest of the industry. Why won't the insurance commissioner and the governor do what they are supposed to do?

Recently, state and federal officials have joined with financial planners in encouraging those approaching retirement to protect themselves from the ravages of an extended long-term care need by buying insurance. Those of us who had the foresight to do just that need the governor and state insurance regulators to stand up to those insurance companies that are attempting to rip off seniors.

They should do their jobs instead of helping the bad apples in the insurance industry make more money at the expense of financially strapped retirees. If they don't, all Kentucky taxpayers eventually will be paying for seniors forced into poverty after dropping their long-term insurance plans.

Bob WagonerExecutive DirectorKentucky Retired Teacher Association

Donna FegengushPresident, Boyle CountyRetired Teachers Association

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