Senior Issues (B) Task Force
March 30, 2008

The Senior Issues (B) Task Force met on Sunday, March 30, 2008.

During this meeting, the Senior Issues Task Force:

• Accepted the 3/25/08 Draft Long Term Care Data Call & Analysis Report. The Report was an analysis of the data received from 23 long-term care insurance companies that responded to a joint long-term care insurance data call by the Senior Issues (B) Task Force and the Market Analysis (D) Work Group. A previous confidential draft of the Data Call & Analysis Report was shared with regulators and interested parties and comments were requested. America’s Health Insurance Plans (AHIP) and the American Council of Life Insurers (ACLI) submitted a joint comment letter. These comments were reviewed and certain claim data was audited, resulting in the 3/25/08 draft. The Task Force is bringing this Report to the Health Insurance (B) Committee for its review and requests that the B Committee consider holding an interim conference call to accept the report, at which time it will become publicly available.

• Discussed possible next steps that the Senior Issues Task Force could take based on the results Long Term Care Data Call & Analysis Report. The Report had revealed a number of inconsistencies in the ways that insurers define certain terms and this impacts the claims data reported in the Exhibit E. AHIP agreed to present an overview of the claim reporting process and claim definitions to the Task Force at the 2008 Summer National Meeting as a first step toward the development of consistent definitions for reporting claims data in the Exhibit E. Iowa has legislation that, among other things, establishes an external review process for long term care insurance consumers. The Task Force agreed that a small subgroup would review the Iowa legislation and consider whether the Long term Care Insurance Model Act and Regulation should be revised to include similar provisions.

• Received a request from Commissioner Holland (OK) to review the issue of closed blocks of business in long term care insurance. The Task Force agreed to consult with the Life and Health Actuarial Task Force and report back at the Summer National Meeting.

• Received an Update on the implementation of the long-term care Partnership Program. Since the last National Meeting, Pennsylvania and Oklahoma had their State Plan Amendment approved by CMS. Michigan, Texas and Wisconsin submitted their SPAs to CMS for approval. New technical assistance grants were made available to 6-8 states through funding from the Robert Wood Johnson Foundation and the Center for Health Care Strategies.

• Received a report from Scott Holeman (NAIC Staff) regarding the NAIC’s Long Term Care Public Service Announcement and the results of the NAIC Baby Boomers and Medicare Survey.

• Received a federal update on pending changes to modernize the NAIC Medicare Supplement Model Regulation. Congress has not yet passed authorization to changes approved to the Model Regulation, but may consider such legislation this summer as part of a larger Medicare package.

• Discussed implementation issues relating to pending changes to modernize the NAIC Medicare Supplement Model Regulation. This included discussion of the effective date of changes, transition issues, and the state implementation process.

• Received an update from the Accident and Health Working Group on work on the Medicare Supplement refund formula, as well as language the Senior Issues Task Force sent to the Working Group for the Medicare Supplement Compliance Manual regarding New or Innovative Benefits.

• Received a federal update on possible legislation regarding marketing and sales of Medicare private plans (including Medicare Advantage plans and Medicare Part D prescription drug plans). Congress is continuing to examine this issue closely, and the Senate Finance Committee held a hearing earlier this year inviting Director McRaith (IL) to testify.

• Received an update from the Medicare Private Plans Subgroup. The Subgroup is working on a white paper, exploring the issues of marketing and sales for Medicare Advantage and Medicare Part D prescription drug plans. The Subgroup is likely to finish their work around June.

• Discussed the emergence of plans being marketed to supplement Medicare Advantage plans.

• Received an update on implementation of an information-sharing Memorandum of Understanding (MOU) between state Departments of Insurance and CMS. All but three states have now signed an MOU with CMS, and CMS has recently provided states access to their electronic health plan management system.

• Received a report from CMS on a number of Medigap-related issues.

Action Items:

• Accepted the 3/25/08 Draft Long Term Care Data Call & Analysis Report.