CDI Warns of False & Misleading Long-Term Care insurance Marketing tactics

long-term care insurance, woman selling something, looking in peep hole

The California Department of Insurance (CDI) has received several complaints regarding misleading marketing and communications by some long-term care insurers and agents in connection with the work of the California Long-Term Care Insurance Task Force (Task Force) and recently issued an alert. These misleading communications falsely assert that a new payroll tax will be imposed in the near future, and that consumers should rush to buy long-term care insurance before the end of 2023.

The Department condemns these tactics and will take all steps it deems appropriate to curtail these ploys, up to, and including, legal action. These tactics are not only unfair to the insurers and agents who are acting honestly and ethically, they are also illegal.

What you need to know

  • The Legislature has not created a public LTC insurance program
  • No payroll tax is being implemented at this time
  • There is no enactment date or deadline to buy LTC insurance before a state-imposed deadline
  • California law protects consumers from misleading statements by insurers and agents
  • Any communication that states that a public LTC program will be enacted on January 1, 2024, or on
    any other specific date, is untrue and a presumed knowing violation of the law.

For more information, read CDI’s full alert. It describes what the California Long-Term Care Insurance Task Force does, outlines prohibited conduct for insurance agents, and how to file for CDI’s assistance.

Karen Joy Fletcher

Our blogger Karen Joy Fletcher is CHA’s Communications Director. With a Masters in Public Health from UC Berkeley, she is the online “public face” of the organization, provides technical expertise, writing and research on Medicare and other health care issues. She is responsible for digital content creation, management of CHA’s editorial calendar, and managing all aspects of CHA’s social media presence. She loves being a “communicator” and enjoys networking and collaborating with the passionate people and agencies in the health advocacy field. See her current articles.