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ABOUREZK LAW FIRM, CONGRESS INVESTIGATE PENN TREATY


ABOUREZK LAW FIRM INVESTIGATES PENN TREATY - CONGRESSIONAL INQUIRY INTO LONG TERM CARE INSURANCE

Congress is currently investigating the questionable practices by some long-term care insurers. A New Yorks Times article published in March 2007 prompted the House committee inquiry.
Long-term care insurance covers everything from nursing homes to assistance at home. During the 1990s, long-term care insurance was one of the industry's fastest-growing products. Companies like Conseco and Penn Treaty aggressively solicited clients who were not in the best health at rates far below that of their competitors to win more business, according to former agents.

In late May 2007, the House Committee on Energy and Commerce sent letters to two large long-term care insurers -- Conseco Inc. and Penn Treaty American Corp. -- requesting documents relating to claims-handling policies and practices. "We have two companies that seem to be engaging in questionable practices, and we have every reason to think we will turn up other companies engaged in questionable practices," said Rep. John Dingell (D-MI), chairman of the House Committee on Energy and Commerce.
In 2007, Abourezk Law Firm investigated Penn Treaty as part of a client claim against the insurance company. Our investigation revealed that Penn Treaty began re-evaluating claims when it determined that policyholders in nursing homes started living longer than expected. Our efforts also uncovered a program that Penn Treaty initiated in 2005 called "The Blitz." Elderly people in nursing homes, whose claims had already been approved by Penn Treaty, were those who were targeted in "the blitz." As part of "the blitz", these approved long term care claims were re-evaluated to see if the person still "qualified" under the policy. In many cases, even though Penn Treaty determined that the policyholder did indeed still qualify, they cut the person off from benefits anyway.

For more information:
www.usatoday.com/money/perfi/eldercare/2007-06-27-elder-long-term-care_N.htm

www.energycommerce.house.gov/Press_110/110nr36.shtml

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