More on long-term care insurance
When you choose a long-term care policy, your premiums are based on some decision that you make about the care you want. For instance, you will probably be able to set the elimination period to end after 20, 30, 90 or even 120 days - or may be able to choose a zero day elimination period. The longer the elimination period, the cheaper the rates will be - but you have to remember that you are responsible for covering the days of service before the insurance kicks in. Often times, when policies were taken out a long time ago, the client has forgotten the fine print - and it can come as a shock when they have to pay for services for a period of time before the insurance company picks up the bill. Many people actually cannot afford to do that - and so they never take advantage of their policies.
Also, you need to be clear about what will happen when you make a claim. Will your monthly payments stop automatically, or will you still have to make them while you are receiving care?
Another fine print item is the duration of care. There is usually a maximum term allowed under the policy - a cap if you like - so that the benefits may be used up and you still need the same, if not more, care.
One thing that can catch people out is the daily amount benefit in their policies. You may have a policy that entitles you to up to $100 per day - but that does not mean that you will automatically get $100 per day as soon as you need help. Like home insurance, there is often a "loss adjuster" involved, who takes a look at the Plan of Care, and sometimes doctor's notes, and decides how much the company will pay per day. They will let you know in writing how much that will be, but communication from insurance companies can be slow and you may have already engaged services at the full rate. You will then be responsible for anything that the insurance company does not pay for.
If your needs change, you will typically need a re-assessment by the in-home care company to be submitted to the insurance company for approval.
It is a good idea to sign an "assignment of benefits" form as soon as you decide to have a home care agency work for you. Your long term insurance company will have their own form, but you can usually also use the company's form also. An assignment of benefits form will allow the in-home care company to invoice the insurance company on your behalf, and receive payments for their services directly. Alternatively, you can have the insurance company make payments to you instead - but you must remember to forward these on to the company that provided your services. In either case, you will be personally responsible for any services provided that are not covered by the insurance company. And that could be significant - if bathing assistance is a required ADL on your care plan, and you decline a bath, you will be responsible for the cost of that whole visit if the insurance company does not pay.
So, in conclusion, if you expect a long-term care policy to cover you for in-home care services, make sure you know exactly what the policy covers. Any reputable in-home care agency should be able to help you with reviewing your policy as part of their service.
Also, you need to be clear about what will happen when you make a claim. Will your monthly payments stop automatically, or will you still have to make them while you are receiving care?
Another fine print item is the duration of care. There is usually a maximum term allowed under the policy - a cap if you like - so that the benefits may be used up and you still need the same, if not more, care.
One thing that can catch people out is the daily amount benefit in their policies. You may have a policy that entitles you to up to $100 per day - but that does not mean that you will automatically get $100 per day as soon as you need help. Like home insurance, there is often a "loss adjuster" involved, who takes a look at the Plan of Care, and sometimes doctor's notes, and decides how much the company will pay per day. They will let you know in writing how much that will be, but communication from insurance companies can be slow and you may have already engaged services at the full rate. You will then be responsible for anything that the insurance company does not pay for.
If your needs change, you will typically need a re-assessment by the in-home care company to be submitted to the insurance company for approval.
It is a good idea to sign an "assignment of benefits" form as soon as you decide to have a home care agency work for you. Your long term insurance company will have their own form, but you can usually also use the company's form also. An assignment of benefits form will allow the in-home care company to invoice the insurance company on your behalf, and receive payments for their services directly. Alternatively, you can have the insurance company make payments to you instead - but you must remember to forward these on to the company that provided your services. In either case, you will be personally responsible for any services provided that are not covered by the insurance company. And that could be significant - if bathing assistance is a required ADL on your care plan, and you decline a bath, you will be responsible for the cost of that whole visit if the insurance company does not pay.
So, in conclusion, if you expect a long-term care policy to cover you for in-home care services, make sure you know exactly what the policy covers. Any reputable in-home care agency should be able to help you with reviewing your policy as part of their service.
Thanks for sharing.please be advised that long term care insurance is not for everyone, but everyone MUST prepare for long term care because of the certain risks associated with it.
Reply to this
the idea of buying long term care insurance does not fit everyone because there are people who need it, while others do not. it's important that you assess your needs plus your budget. you may find more tips here http://www.completelongtermcare.com/resources
Reply to this