It is with great disappointment that I inform you that the MedAmerica Companies will be discontinuing sales of our long term care insurance and short term care insurance products, effective February 15, 2016. Regulatory approval of this action will be required in all 50 states.
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, as evidenced by a 22% decline in 2015 industry sales, according to LIMRA. Unfortunately, these circumstances, particularly the low interest rate environment, have left MedAmerica with no choice but to exit the marketplace.
Going forward, we will focus our resources on providing the best possible service to our existing insureds, following through on our commitments, and delivering on our mission to provide financial protection, and comprehensive, caring support for families who are navigating a long term care event. Coverage for all of the approximately 120,000 insureds we service will continue without interruption. You can rest assured your clients will still receive the pristine service you have come to expect from MedAmerica.
For complete details on how this action will impact you, please click the links below. We will be mailing a copy of this notice to each agent and agency to provide the required 30 day notice (90 day notice in Pennsylvania) of contract and appointment termination. All producer contracts with MedAmerica and all state appointments, with the exception of Pennsylvania, will be terminated on February 15, 2016. The termination date in Pennsylvania will be April 15, 2016. Please be advised that the last application sign date in all states, regardless of the contract and appointment termination date, is February 15, 2016.
On behalf of all of us here at the MedAmerica Companies, please accept my sincere gratitude for the many years of partnership. We truly appreciate your business, support, and commitment to MedAmerica over the past 28 years.