Long-term care benefit
Prudential announcement and impact on UD's long-term care benefit
3:52 p.m., Aug. 22, 2012--The Prudential Insurance Company of America recently announced that it has discontinued sales of new group long-term care insurance products.
The potential impact to University of Delaware employees and retirees is detailed in the questions and answers that follow:
Monitoring and planning
Q. How does this impact employees or retirees who are currently enrolled in the University’s group long-term care plan?
A. The terms and conditions of coverage provided under the existing Prudential group long-term care insurance certificate will not change.
Q. Will coverage be renewable?
A. This coverage is guaranteed renewable so long as premiums are paid on time, and benefits are not exhausted.
Q. Will premiums change?
A. Premiums may change on a class basis, subject to regulatory review.
Q. What customer support will be available?
A. Certificate holders will continue to receive customer service and claims support.
Q. How will premium payments be made after Prudential discontinues sales?
A. Prudential will continue to support premium payment through payroll deduction for active employees.
Q. What options will continue to be available?
A. Based on coverage elected, contractual options such as periodic inflation protection and automatic inflation protection will remain in effect.
Q. How does this impact University employees or retirees who are not currently enrolled in the University’s group long-term care plan?
A. Prudential will continue to enroll new hires and late entrants in group long-term care insurance contracts, as long as enrollment forms are received by June 30, 2013. Prudential will not accept new enrollments (from current or newly-hired employees) that are received by Prudential after June 30, 2013.
A copy of Prudential’s press release can be found at this link.
Prudential is in the process of sending notification letters to current long-term care certificate holders to alert them to this change in business strategy.