Legal battle escalates over long-term care insurance policies sold to Iowans

The Iowa Capital Dispatch reports a long-running dispute between insurance commissioners in Iowa and Pennsylvania has escalated, with Iowa regulators arguing that hundreds of elderly Iowans are now being put at risk due to a company's willful violation of a court order.

A 2022 injunction barred SHIP from off ering any rates, riders or policy documents to any Iowa policyholders that had not been previously authorized and approved by the Iowa insurance commissioner.

In January 2025, SHIP informed the Iowa insurance commissioner the company had filed a request with the commonwealth court of Pennsylvania to begin implementing a court-approved "rehabilitation plan" for the company.

According to newly filed court papers in the case, SHIP "did not back down" and now intends to "unilaterally modify all Iowa SHIP policies" between May 31 and Oct. 28.