MedAmerica is withdrawing from the long-term care insurance and the short-term care insurance marketplace effective February 16, 2016.
MedAmerica first entered the long term care insurance marketplace in 1988. MedAmerica currently provides long term care insurance coverage for approximately 120,000 policyholders.
Bill Naylon, company president stated "While we believe there is a growing and undeniable social need for financing long-term care, economic circumstances have impacted the entire long-term care industry...Unfortunately these circumstances, particularly the low interest rate environment, have left MedAmerica no choice but to exit the marketplace."
In-force long term care insurance policies will continue without interruption and MedAmerica will continue to provide exceptional customer service, Naylon says.
MedAmerica joins a growing list of underwriters since 2008 that have chosen to exit the traditional long term care insurance marketplace due to the low interest rate environment including Met Life, Prudential, Allianz, Guardian, CNA, Great American, CUNA and American General.
LifeSecure recently ceased writing individual policies to focus only on group LTC insurance.
For years MedAmerica was popular with agents and consumers alike for its innovative Simplicity long term care insurance policy that provided the flexibility of 100% cash benefits and world-wide coverage. Many long-time agents agents, myself included, consider the Simplicity policy to be the most robust long term care insurance policy ever offered in the marketplace.
MedAmerica, you will truly be missed.