Migliaccio & Rathod LLP is investigating whether long-term care insurance companies have underpaid policyholders who purchased automatic 5% compound inflation protection, including policyholders in Iowa, Minnesota, and Nebraska.
Some long-term care insurance policies provide for annual benefit increases calculated as a percentage of the previous year’s benefit amount. Under a 5% compound inflation provision, the amount available for covered care may increase substantially over 15 or 20 years. These increases may apply to daily, monthly, or lifetime benefits depending on the specific contract.
Migliaccio & Rathod is investigating whether insurers incorrectly applied compound inflation formulas, failed to include required annual increases, or calculated benefits using lower amounts than those promised under qualifying policies.
Policyholders May Have Experienced:
- Receiving long-term care benefits calculated using an outdated coverage limit;
- Having annual 5% compound increases omitted from their benefit calculations;
- Receiving benefit increases calculated using simple rather than compound growth;
- Having daily, monthly, or lifetime benefit limits calculated incorrectly;
- Paying additional care expenses because their insurer applied a lower benefit limit; or
- Difficulty determining whether the insurer applied all required annual increases.
Potential Claims May Include:
- Failure to apply contractual compound inflation benefits;
- Incorrect calculation of long-term care insurance coverage limits;
- Breach of insurance contract;
- Improper underpayment of covered long-term care benefits; or
- Violations of applicable insurance laws.
Signs You May Be Affected:
- You purchased a long-term care insurance policy in Iowa, Minnesota, or Nebraska;
- Your policy expressly includes automatic 5% compound inflation protection;
- You maintained the policy through multiple scheduled annual increases;
- You received benefits for qualifying long-term care services;
- Your insurer calculated payments using benefit limits that may not reflect the required compound increases; or
- You have the original policy, inflation-protection provisions, benefit schedule, and claim statements.
If you believe you experienced this issue, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call.