This is to formally inform you that effective July 1, 2013, the Prudential Life Insurance Company of America (Prudential) will no longer issue new long-term care (LTC) insurance policies to eligible Verizon employees and retirees and Verizon will no longer offer eligible employees and retirees the opportunity to purchase LTC insurance after this date.
Prudential?s decision to discontinue issuing new LTC policies is part of the shift in the LTC market. The LTC market has recently undergone significant pricing increases and consolidation. The majority of major long term care insurance carriers have announced they will no longer provide LTC policies to new group plans and have stopped accepting new entrants into existing group plans. This includes MetLife and John Hancock (4th quarter 2010), CNA (3rd quarter 2011), UNUM (1st quarter 2012) and now Prudential. After working with Towers Watson to understand the LTC market after Prudential?s announcement, we have determined that we are unable to secure a provider of LTC insurance that is able to offer LTC coverage that is appropriate or reasonably priced.
As a result, the Verizon Long-Term Care Insurance Plan for Mid-Atlantic Associates (the LTC Plan) will be closed to new entrants effective July 1, 2013 and Verizon will not continue to make available to eligible employees and retirees the opportunity to purchase LTC insurance after this date. Prudential will continue to accept new enrollment applications until midnight EST on June 30, 2013.
If employees and retirees are currently enrolled in LTC coverage with Prudential, no action is required on their part should they wish to continue coverage. Under the terms of the current Prudential group policy with Verizon, as long as policyholders continue to timely make the required premium contribution and their benefits are not exhausted, their LTC coverage will continue. However, please be advised that the rate guarantee for Verizon LTC policyholders will expire on December 31, 2016, and as a result, their rates for coverage may materially increase and policyholders may be required to pay a higher premium if they continue coverage after that date.
Eligible employees and retirees may enroll no later than June 30, 2013 by calling Prudential at 1-888-989-4778. Customer Service Representatives are available Monday through Friday, 8:00 am to 8:00 pm EST. Employees may also enroll on line at www.prudential.com/gltcweb/verizon. If eligible employees or retirees try to submit new enrollment application in the LTC Plan after June 30, 2013, they will no longer be eligible and will be denied coverage. If employees, retirees or their family members are currently enrolled in coverage under the LTC Plan with another provider, such as MetLife, John Hancock or Mutual of Omaha, no action is required should they wish to continue coverage.
Attached is copy of the employee and retiree communication which they will receive by May 24, 2013. If you have any questions, please call the local.