Why TRS Changed LTC Insurers
Aetna Life Insurance Company (Aetna) has made a business decision to exit the nationwide group long term care insurance market. This means Aetna will not continue to offer group long term care insurance, but will continue to service existing insureds under the terms of their Aetna coverage. Aetna has been the insurer for the TRS Group Long Term Care Insurance Program since 2000 and this decision by Aetna was not expected. As was announced in the March 2009, TRS-News, following a competitive bidding process the TRS Trustees selected Genworth Life Insurance Company (Genworth) to replace Aetna . Aetna is cooperating with TRS and Genworth to facilitate a smooth transition for current Aetna insureds and provide opportunities for individuals wishing to obtain long term care insurance. All current insureds have been mailed personalized information packets that explain their options. More information will be made available on this Website in the future, but for now, we would like to remind everyone of the following key points:
- No current enrollee in Aetna's long term care insurance will be required to change or drop their Aetna coverage;
- Current insureds who choose to remain with Aetna will still have the rates for their current level of benefits guaranteed to October 1, 2012, but after August, 2009, they will need to pay their premiums directly to Aetna; and
- Individuals who choose to transfer their long term care insurance from Aetna to Genworth will have an opportunity to do so through July 15, 2009, under the terms of their individualized transfer offer that has been mailed to their homes by Genworth.
You can get additional information and ask questions via Aetna's toll-free number 1-877-894-2462 or Genworth's toll-free number 1-866-659-1970.
A Message from Aetna
While the Teacher Retirement System of Texas (TRS) has been making group long-term care insurance available through Aetna Life Insurance Company (Aetna) for several years. TRS is now introducing a new group long term care insurance plan underwritten by Genworth Life Insurance Company (Genworth) effective September 1, 2009.
For those of you who are currently enrolled in the plan offered through Aetna, you have a one-time opportunity to replace your Aetna coverage with coverage offered through Genworth. Since Aetna decided to stop selling long term care insurance, Aetna won't be making plan enhancements, nor will they develop new product offerings in the future. The Aetna plan will close, which means no new enrollment for employees or eligible family members. Aetna will cease deducting premium from your payroll/pension after the last deduction in August, 2009 and you will be direct billed should you stay with the Aetna plan. All existing members have the right to continue their coverage with Aetna under the terms of their Certificate of Insurance.
The following Questions and Answers provide additional information regarding the Aetna coverage:
Is my Aetna LTC coverage (policy/certificate) still valid?
Yes, provided that any required premiums are paid, your Aetna coverage will remain in effect until you terminate it, exhaust your benefits, or transfer your coverage to Genworth.
Will my Aetna coverage continue to increase under the inflation protection provision?
If you have the auto inflation feature in place, coverage will continue to increase subject to the terms of your Certificate of Insurance. If you do not have auto inflation, you will continue to receive periodic offers to increase your Aetna coverage subject to the terms of your Certificate of Insurance.
Will I still receive a benefit from Aetna if/when I ever go into claim?
Aetna will continue to pay LTC claims for eligible members who maintain their coverage with Aetna in accordance with the terms and conditions of their Certificate of Insurance.
Are the Aetna rates changing?
The current Aetna rates are guaranteed through 9/30/2012. Aetna cannot increase premiums on your coverage alone. However, Aetna reserves the right to adjust rates on a class basis in the future. Aetna does not have the ability to increase rates at its discretion. Any rate increase must be justifiable, and would need to be approved by the various state insurance departments before it could be implemented.
Will TRS still be the Policyholder for the Aetna coverage?
No. Upon the case closing to new enrollments, the Group Policy will be assigned to the Aetna Group Long Term Care Trust. Under the Trust, Aetna will continue to administer your coverage in accordance with the terms of the Group Policy.
Should I cancel my Aetna coverage?
Whether or not you cancel your coverage with Aetna is a personal decision. Your Aetna coverage remains in effect until you terminate it, exhaust your benefits or transfer it to Genworth. If you decide to cancel your Aetna coverage, no premiums will be returned to you.