Conseco, the Indiana based insurer and one of the nation's largest sellers of long term care insurance, has transferred its long term care policies to a state trust fund in Pennsylvania. The move puts 140,000 of its policyholders at risk of having their premiums increase, their benefits decrease and their claims subject to policy limits.

Why the transfer?

According to news reports, Conseco transferred the long term care polices to the Senior Health Insurance Co. of Pennsylvania, a state trust fund, because it was losing money on the policies. Conseco's transfer of the policies has angered many as, according to insurance rating company A.M. Best, the fund will likely increase policyholders' insurance premiums, decrease their benefits and subject their claims strictly to policy limits. It is estimated that nearly 140,000 policyholders could be affected by the transfer.

Long term care insurance policies were sold in record numbers several years ago; however, insurance companies didn't realize how much health care costs would rise in the coming years. Companies like Conseco - who have been receiving premiums from policyholders for years - now have to start paying on claims from those who need long term care. However, policyholders are finding that getting paid isn't that easy.

LTC insurers simply don't want to pay

For the roughly eight million long term care policy holders in the United States, getting their long term care claims paid may be an uphill battle - because insurers simply don't want to pay. A recent news article told the story of a 95-year old Texas woman who was denied her long term care benefits - even though she couldn't walk or take her medications without help. The reason for the denial? Because the woman could remember her name. Therefore, her insurance company said that she wasn't "cognitively impaired" and didn't qualify for benefits. Her insurance company? Conseco.

If your long term care insurance company has denied your valid benefits, it may have acted in bad faith. Contact an experienced long term care insurance attorney to discuss your situation and evaluate your options.