States raise concerns with new insurance program in healthcare law

When long-term-care insurance first became available, Keiser said, companies charged low rates to boost sales. Then they ended up without enough cash on hand to cover their claims, raised premiums to compensate and lost the healthy customers whose money they needed most.

He said hes afraid the same thing will happen to CLASS.

“This will be a perfect case of adverse selection,” Keiser said.

He wants HHS to reach out to the states that have some experience controlling premiums for long-term-care coverage.

“It would be great if they just would involve … the states a lot more,” he said.