Two long term care (LTC) experts have lambasted the Treasury because, they claim, it is simply passing the buck on the important issue of care for the elderly.
The criticism came after Stuart Bayliss, a director at Fees Assured, and Paul Harvey, managing director of the Kent-based Care Consultancy, met with Baroness Sue Catchpole, the official in charge of LTC regulation at the Treasury, following an invitation to discuss an issue raised in Harvey’s contribution to the June edition of Health Insurance.
After researching LTC bonds sales past, present and future, Harvey found that some of the bonds “were disastrously short of projections” and “catastrophic market conditions combined with an increase in product charges, resulted in a potential calamity for clients”.
Bayliss and Harvey told Baroness Catchpole that LTC policies must represent value for money with no hidden surprises such as poor performing investments, disputed claims, and increasing premiums.
But the Treasury has simply passed the issue to the FSA because, it says, LTC bonds are investment products, not insurance.