Indiana Long Term Care Insurance Program Quarter Report April 1, 2012 through June 30, 2012

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1 Indiana Long Term Care Insurance Program Quarter Report April 1, 2012 through June 30, 2012 Completed on August 10, 2012

2 QUARTERLY SUMMARY REPORT INDIANA QUARTER TO DATE Applications Received: ,710 Applications Denied: ,091 Applications Pending & Withdrawn: N/A 783 Policies Purchased: ,823 Policies Dropped (voluntarily & for unknown reasons*): 98 6,641 Policies Not Taken Up: (dropped within 30 day free look period) 11 2,610 Total Policies In Force (active): N/A 41,055 Policyholders Who Received Service Payments: 460 1,372 * Does not include drops reported as deaths, rescissions or exhausted benefits.

3 INDIANA LONG TERM CARE INSURANCE PROGRAM Statistical Summary Period: April 1, 2012 June 30, 2012 Report Prepared August 10, 2012 The Indiana Long Term Care Insurance Program (ILTCIP) is an innovative public/private partnership between the Indiana Medicaid Program and private long term care insurance companies, designed to help Indiana residents finance their potential long term care without fear of impoverishment. The Program began operation on May 17, 1993, with state approval of the first eight participating insurers. Actual marketing of Indiana Partnership policies by these companies began later that summer. This report presents information for the quarter ending June 30, 2012, in the form of quarterly-specific and cumulative statistics since the Program's inception. Highlights from this quarter include the following: Policies purchased during this quarter were 297! Cumulatively, 63,710 applications have been submitted with over 52,823 policies purchased! Comprehensive policies continue to be the primary type of policy being purchased. For example, % of all policies purchased in Q2 12 were comprehensive while 0.00% were for nursing home only. Cumulatively, the number of comprehensive policies purchased has increased from 92.17% of all sales in (Q2 11) to 92.76% of all sales in (Q2 12). 60% of policies purchased during Q2 12 qualify for Total Asset Protection. Cumulatively, 78.46% of all policies purchased qualify for Total Asset Protection % of all policies purchased have been by first time purchasers. The average age of policy purchasers is Age range of purchasers is 18 to 89. Cumulatively, 75% of all policyholders were age 65 or under at the time of purchase.

4 Indiana Long Term Care Insurance Program: Statistics for Quarter Ending June 30, 2012 In Comparison To Cumulative Program Statistics Quarter ending Cumulative as of Total Policies Purchased Total Policies Dropped * Policies Not Taken Up During 30 Day Free Look , Died 57 (33.14%) Voluntarily 28 (16.28%) Unknown 70 (40.70%) Not Taken Up 11 (6.40%) Converted 0 (0.00%) Exhausted Benefits 6 (3.49%) Rescission 0 (0.00%) Non-Forfeiture 0 (0.00%) 11,576 Died 2,102 (18.86%) Voluntarily 2,851 (24.63%) Unknown 3,790 (32.74%) Not Taken Up 2,610 (22.55%) Converted 79 (0.68) Exhausted Benefits 94 (0.81%) Rescission 2 (0.02%) Non-Forfeiture 48 (0.41%) Policies in Force N/A 41,055 *Does not include exhausted or rescissions. This information was based on quarterly and cumulative policies in force. Nursing Home and Home Care Policies. Nursing Home Only Policies 297 (100.00%) 0 (0.00%) 38,083 (92.76%) 2,965 (7.22%) First Time Purchasers Upgrades or Replacements 289 (97.31%) 8 (2.69%) 39,289 (95.70%) 1,758 (4.20%) Individual Group Certificates Organization Sponsored 281 (94.61%) 0 (0.00%) 16 (5.39%) 39,014 (95.03%) 266 (0.65%) 1,767 (4.30%) Male 128 (43.10%) 17,763 (43.27%) Female Married Not Married Unknown Civil Union or Domestic Partner 169 (56.90%) 259 (87.21%) 38 (12.79%) 0 (0.00%) 0 (0.00%) 23,285 (56.72%) 33,295 (81.10%) 7,393 (18.01%) 352 (0.86%) 18 (0.04%)

5 Indiana Long Term Care Insurance Program Fact Sheet For Quarter 2, 2012 PARTICIPATING COMPANIES: Allianz Individual American Republic Individual: Tax Qualified Bankers Life and Casualty Individual: Tax Qualified Central States of Omaha Individual: Tax Qualified CNA Individual/Group: Tax Qualified Genworth Individual: Tax Qualified Hartford Life Individual: Tax Qualified John Hancock Individual: Tax Qualified Massachusetts Mutual Insurance Company MedAmerica Individual & Group: Tax Qualified Metropolitan Life - Individual: Tax Qualified Monumental Life Individual: Tax Qualified Mutual of Omaha Penn Treaty Network America - Individual Prudential Ins. Co of America Tax Qualified Senior Health Ins. Co. of PA Tax Qualified State Farm Individual: Tax Qualified Transamerica Individual: Tax Qualified United Teachers Associates Insurance Company 19 companies provided data during Quarter 2, 2012.

6 Age Distribution of Partnership Policyholders at Time of Purchase Age Range Average Age Policy Category Low High Individual Policyholders Group Certificate holders Organization Sponsored All Insured Age Distribution of Policyholders (Policies in Force) Age Category Percentage of Policyholders % % % % % % % %

7 Nursing Home Per Diem Amounts (Policies in Force): Average Amount: $ Mode: $ (10% of all purchasers) Home Care Per Diem Amounts (Policies in Force): Average Amount: $ Mode: $ (9% of all purchasers) Elimination Periods (Policies in Force): Nursing Homes: Home and Community Care: 0 days 1,454 (3.54%) 0 days 15,366 (37.43%) 9 days 1 (0.01%) 10 days 5 (0.01%) 15 days 43 (0.10%) 14 days 175 (0.43%) 20 days 1,057 (2.57%) 15 days 29 (0.07%) 30 days 5,364 (13.07%) 20 days 892 (2.17%) 45 days 641 (1.56%) 30 days 4,208 (10.25%) 50 days 1,668 (4.06%) 45 days 636 (1.55%) 60 days 1,326 (3.23%) 50 days 24 (0.06%) 90 days 18,779 (45.74%) 60 days 1,016 (2.47%) 100 days 9,745 (23.47%) 90 days 11,335 (24.61%) 120 days 2 (0.01%) 100 days 3,720 (9.06%) 180 days 967 (2.36%) 180 days 731 (1.78%) 365 days 2 (0.01%) 365 days 2 (0.01%) Riders: Non-Forfeiture 179 (0.44%) Restoration of Benefits 520 (1.27%) Spousal Benefit Enhancement 958 (2.33%) Other Riders 1,550 (3.78%)

8 Asset Protection Type at Initial Policy Purchase By Policy Effective Date Quarter Cumulative at Time of Purchase Policies Purchased by Quarter 297 Policies Purchased by Cumulative 52,823 Total Asset Protection by Quarter 178 Total Asset Protection by Cumulative 41,268 Dollar for Dollar by Quarter 119 Dollar for Dollar by Cumulative 11, Asset Protection Type at Initial Purchase Total Asset Protection Dollar for Dollar *Total Asset Protection became available & grand fathered in those policies with coverage at initial purchase equal to or greater than state-set-dollar amount for 1998.

9 Maximum Policy Amount of Policies in Force: Range: $21,977 - $6,504,300 (plus 3,865 lifetime policies) Average amount: $207,175 (not including lifetime policies) Maximum Benefit Amounts Selected By All Purchasers (Policies in Force) Maximum Benefit Amount at All Purchasers Time of Purchase Approx: Up to $40,000 (1 yr) 325 (0.79%) $40,001 - $80,000 (2 yrs) 1,461 (3.56%) $80,001 - $120,000 (3 yrs) 2,254 (5.49%) $120,001 - $160,000 (4 yrs) 3,131 (7.63%) $160,001 - $200,000 (5 yrs) 10,949 (26.67%) $200,001 or greater (6 yrs +) 19,073 (46.46%) (excluding lifetime) Lifetime Policies 3,865 (9.41%) 9% 1% 4% 6% 46% 7% 27% Up to $40,000 $40,001-$80,000 $80,001-$120,000 $120,001-$160,000 $160,001-$200,000 $200,001 or greater Lifetime

10 Policyholders in Benefit Information as of June 30, 2012 Benefit Status Number of policyholders, to date, who have received benefit payments. Number of policyholders in benefit as of Quarter 2, Number of policyholders that received benefits and have died. 500 Number of policyholders, to date, who have exhausted their benefits and applied to Medicaid 1, (94 Exhausted) Asset protection earned by policyholders to date. $79,371, Asset protection earned to date that will not be accessed $23,234, (policyholders who have died) Service Utilization Type of Service* (other than case management) QTY % of Total Claimants by Type of Service ** Nursing Home Care % Home Health Aide hourly care Home Health Aide daily care % 13.48% Attendant Care % Other Institutional 0 0% Hospital Bed Hold % Assisted Living % Adult Day Care % Personal Care % Alternate Level of Care % *These categories are not mutually exclusive; therefore, percents shown will not total 100. **This is the cumulative status of all claimants. The status and percent (%) will change as the claimant s status changes.

11 CLAIMANT PROFILE Cumulative Aggregate of All Policyholders Who Used Benefits As of June 30, 2012 Gender Female 67.27% Male 35.64% Marital Status Not Married 39.07% Married 56.92% Unknown 4.45% Average Age At The Time Of Policy Purchase 71 Average Age At The Time Of Claim 79 Age Range At Time Of Claim Range = Mean = 79.8 Median = 80.2 Policy Type Owned: Nursing Home Only 26.68% Nursing Home & Home Care 78.28% Average time elapsed between purchase date and claim date was 108 months (9 years)