Davenport, Iowa – In the wake of his wife’s death, State Representative Ken Croken is taking action to address problems with long-term care insurance. Kathryn McKnight, a devoted nurse and Croken’s wife, passed away in 2021 after a prolonged battle with breast cancer. Following her death, Croken encountered significant difficulties when trying to collect on her long-term care insurance policy.
Despite the policy’s value being around $2,000, Croken found himself entangled in a frustrating and protracted process with the insurance company, ultimately unable to collect on the claim. This personal ordeal has inspired him to hold a public forum in collaboration with the Iowa Insurance Division to gather and address residents’ experiences with long-term care insurance.
“I don’t regret not having more claims for my long-term care insurance. I was honored to spend the last years together with her,” Croken shared. “But this shouldn’t happen to another family, especially a family whose long-term care insurance is a crucial part of their financial plan.”
Long-term care insurance is designed to cover services related to chronic conditions, often not covered by standard health insurance, such as care in nursing homes or assisted living facilities. However, the rates for these policies can increase over time, leading to consumer dissatisfaction and financial strain.
According to Broker World Magazine, over 75,000 people purchased individual long-term care insurance policies in 2021. Despite the challenges with long-term care insurance, Croken noted that he had no issues claiming the life insurance policy on his wife.
Sonya Sellmeyer, a consumer advocate for the Iowa Insurance Division, highlighted that most complaints they receive regarding long-term care insurance are related to rate increases. “It depends on the policy,” Sellmeyer explained. “There might be an option to get some of their premiums back, get a paid-up policy, or reduce their benefits. There are usually several options available in response to rate increases.”
Consumers can file complaints against insurance companies on the Iowa Insurance Division’s website. The division also assists in answering questions and facilitating communication between consumers and their insurance companies.
The public forum, led by Sellmeyer and Croken, is scheduled for 9 a.m. on September 21 at the Davenport Public Library’s Eastern Branch, 6000 Eastern Ave. The event will feature an open-mic format, allowing attendees to share their stories and concerns about long-term care insurance.
Croken, a Democrat, intends to draft legislation on long-term care insurance based on the issues raised during the forum. Potential legislative measures could include capping rate increases or requiring insurance companies to refund consumers under certain conditions.
“If people are abandoning their policies due to a rate increase, a responsible legislator would have to say, ‘Well okay, but you have to give them back the money they’ve given you plus interest,’” Croken stated. “That’s not truly abandoning the policy; that’s being driven away from the policy.”
Sellmeyer emphasized the importance of consumers understanding their policies before purchasing. “Before you buy one of these contracts, you’ve got to understand what you’re buying,” she advised.
Croken, who was financially stable, recognized that many others relying on these insurance policies might not be. He encouraged anyone with experiences related to long-term care insurance to attend the forum and share their stories.
Reflecting on his own experience, Croken expressed his doubts about the efficacy of long-term care insurance. “The reason I’m doing this is to try to protect my children from a financial disaster and therefore allow me to sleep better at night knowing that I’ve taken steps to protect them,” he said. “But now I’m wondering, did I take steps to protect them, or did I simply shortchange their inheritance?”
