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Unum Proposes Long-term Disability Rate Hikes, Seniors Furious

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Chattanooga, TNYou can’t help but think that Unum,or Unum Provident puts profits above people when its sales rise but at the same time the insurance provider proposes disability rate hikes up to 114 percent.

Unum’s total revenue slid slightly to $2.6 billion in 2014 from $2.61 billion in the first quarter of 2013. Last month the Times Free Press reported that Unum Group boosted its second quarter net income by 10 percent from a year ago to $236.8 million, or $1 per share. “Our focus going forward remains on continuing to profitably grow our business through disciplined pricing, underwriting and expense management - principles that continue to serve us very well," wrote CEO Tom Watjen in a letter to employees. Does “disciplined pricing” mean rate hikes to seniors?

In Florida alone, the giant health insurer has more than 45,000 long-term care policy holders. With Unum’s proposed increases ranging from 75 percent to 114 percent under different plans, it would seem a slam dunk that profits will grow. In all fairness to Unum and other insurance companies, 12 million Americans currently need long-term care. By 2050, that number is expected to reach 27 million. But how consumers are going to pay their premiums to guarantee long-term disability benefits is unclear.

A recent study by Genworth, a financial security and insurance company, determined that approximately 70 percent of Americans reaching age 65 will require long-term care services at some time in their lives, but only 11 percent have a long-term care insurance policy.

According to mypalmbeachpost.com, a woman from West Palm Beach broke down in tears about the proposed rate hikes. She said that consumers are getting scammed because they bought a policy with the belief that premiums would not increase. And insurance agents reassured them that they could count on “secure long-term care benefits after years of paying and planning ahead.”

Unum isn’t alone. MetLife has also adopted this policy (although not as greedy as Unum as their hikes range from 21 percent to 95 percent). Both insurers are defending their decision because of rising costs as people live longer, and people are relying on their policies longer should they need long-term disability benefits.

Only nine states have not adopted long-term care insurance rate stability regulation. And most state regulations are based on a model recommended by the National Association of Insurance Commissioners, which don’t allow big increases in premiums that people in, say, Florida are expected to pay. If you live in Pennsylvania, rate hikes increases up to 130 percent were proposed until the insurance commissioner came up with a plan involving four insurance providers: consumers could minimize their premium increase for changes to their policy terms or benefits.

If you live in one of the nine states that doesn’t regulate long-term care insurance, you might want to seek legal help.

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READER COMMENTS

Posted by

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I SIGNED OPTIONAL LTD INS W UNUM WHILE NURSING AT ST MARYS HOSPITAL. I BECAME DISABLED & NOT ALLOWED TO RETURN TO NURSING DUE TO DISABILITY. OBTAINED UNUM LTD AFTER 6 MTHS W AMT BASED ON NOT ACTUAL HRS WORKED EVEN @ 85% OF THAT AMT. WHEN I RECEIVED SS DISABILITY W ATTY HELP, UNUM DIDNT PAY FOR ATTY AND THEN KEPT MTHLY PAYMENTS UNTIL LAWSUITS FORCED REASSESSMENT. I WAS TOLD I HAD TO REPAY EXCESS OF $24,000 ! THEREFORE I RCVD MTHLY CKS BUT MONIES APPLIED 100% TO "OVERAGE" UNUM CLAIMED PAID OUT. AT $12,000 WAS TOLD I HAD TO OFFICIALLY RETIRE STOPPING UNUM LTD. UNUM PUT THAT AMT THEY CLAIMED OVERPAID ON MY CREDIT REPORT, DESTROYING MY CREDIT SINCE!! OVER $12,000. I FEEL THIS WAS TOTALLY WRONGLY REPRESENTED WHEN I BOUGHT EXTRA LTD INS AND SUBSEQUENTLY FILED LTD CLAIM BASED ON INITIAL PART TIME MONEY WHEN I ACTUALLY WORKED OVERTIME NEARLY EACH PAY PERIOD.

Posted by

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Do I have To pay back pay to unum I don't recall signing anything

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