11 Long term health insurance companies, including the three biggest [Genworth Financial, Conseco, and Penn Treaty), have been asked by Congress why so many policies of the elderly are being "mishandled."
According to the New York Times there are procedures "that make it difficult, if not impossible, for some policy holders to be paid." Some people suspect that the companies are more interested in profit than in the well being of the policy holders. It has even been claimed that the companies have no intention of honoring their health policies, they only want the money and deliberately reject claims on bogus charges.
Complaints by the elderly have risen 92% in the last six years, and when independently reviewed the majority of claim denials have been overturned and the companies had to pay.
"This is a pattern of ERROR not typically found in other lines of health- related insurance" according to the National Association of Insurance Commissioners. The joke is the use of the word "Error". There is no "error", in my opinion, but a deliberate abuse of the elderly to make them suffer and die so the companies can make big bucks. But that's the free market for you.
[ Based on a report in the NYT 10-3-07, reported by Charles Duhigg]