by KYW's Salil Gutt

A page one story in the Wall Street Journal reported on something worrisome. As a means to cut Medicaid bills which provides free health care to the poor, states are establishing partnerships with long term care insurance companies. Fifteen states now have joint marketing arrangements to sell long term care insurance to people who can ill afford it.

A spokesman for the insurance industry crowed it was the best thing to ever happen to the industry. Judging from the experience of subsequent customers it was probably the worst thing to ever happen to them. The insurance industry reverted to its old games once the policies were sold. Namely dramatic annual premium increases and arbitrary denying of claims. Precisely the reasons why even many economically better off people are wary of buying long term care insurance.

One man saw his monthly premiums increase from $114 to to $410 within three years and now regrets buying the policy. An 87-year-old woman told the Joumal how it was a battle to get her insurer to pay benefits at all.  In short, this is a product to avoid for those who cannot afford the high monthly premiums.