Insurance fraud: "If they wait long enough... the policyholders will die."

The story in today's New York Times about long-term care insurance is a bombshell, evoking the heart-rending predicaments of frail 80-somethings paying years of long-term care insurance premiums only to be denied coverage for nursing home care when they are ailing. I recommend reading the whole article, but if you don't have time, this sentence, from the former senior executive at the National Association of Insurance Commissioners, pretty much sums it up:

"The bottom line is that insurance companies make money when they don't pay claims... They'll do anything to avoid paying, because if they wait long enough, they know the policyholders will die."

The article details the hours on the phone and reams of paperwork insurance companies demand, only to deny care. Knowing that most people won't sue, insurers prefer to settle out of court rather than risk that the details of their operations be revealed in the course of a lawsuit. On the other end, as DMI fellow Andrew Friedman so powerfully writes, the front-line workers actually doing the work of caring for the elderly also get squeezed in an effort to cut costs.

Understand the importance of honest news ?

So do we.

The past year has been the most arduous of our lives. The Covid-19 pandemic continues to be catastrophic not only to our health - mental and physical - but also to the stability of millions of people. For all of us independent news organizations, it’s no exception.

We’ve covered everything thrown at us this past year and will continue to do so with your support. We’ve always understood the importance of calling out corruption, regardless of political affiliation.

We need your support in this difficult time. Every reader contribution, no matter the amount, makes a difference in allowing our newsroom to bring you the stories that matter, at a time when being informed is more important than ever. Invest with us.

Make a one-time contribution to Alternet All Access, or click here to become a subscriber. Thank you.

Click to donate by check.

DonateDonate by credit card
Donate by Paypal

Don't Sit on the Sidelines of History. Join Alternet All Access and Go Ad-Free. Support Honest Journalism.