Medicare Supplement – Insurance Quotes

Long Term Care Insurance Policy Premiums are determined by the type of policy chosen, daily benefit amount to be paid, your age, number of years the policy will pay benefits, choice of inflation protection and the number of days after you qualify for the benefits before the company will start to pay benefits. If you have a pre-existing condition some companies will insure you for a higher premium. The combination of these factors decides your LTCI premium.

Various LTCI companies calculate the cost of benefits you choose in a varying manner. This reason alone can make a significant difference between premiums for similar benefits. For instance, a company calculates the premium based on every $10 of the daily benefit you choose. If for each $10 of daily benefit the company charged $95, the premium would be $950 per year for a daily benefit of $100. With a similar package of benefits costing $150 with another company, the premium would rise to $1500.

The method and amount of inflation protection chosen will also influence your LTCI premium. For those in their 40s and 50s not expecting to need care for several years this nearly doubles their cost. Your probability of developing health conditions which make you ineligible to apply for new benefits increases with age but your ability to change LTCI policy diminishes as you age.

Over the years your LTCI premiums can increase. At the time of buying a LTCI policy your agent provides you with a personal worksheet which explains the rate increases the company has had since 1990. The California Department of Insurance website lists the rate increases for every company that sells LTCI. Increasing future premiums became difficult for LTCI companies when California passed legislation in 2000.

When it became mandatory in 2006 for all companies filing for premium increases over a certain amount to offer a choice, policy holders got to choose between stop paying their premium and keep the benefits equal to the total amount of premiums already paid. The sum of premiums that has already been paid will finance only a small amount of care. If you were unable to pay because of a premium increase, you will not lose all your benefits.

By reducing some of the policy benefits you can negotiate with your company for lower premiums. If you have received premium increase notice or you need to lower your premium contact your local Health Insurance Counseling and Advocacy Program (HICAP) office.

Learn more about long term care insurance. Stop by Maria Smith’s site where you can find out all about long term care health insurance and what it can do for you.

Costs rising out of long term care services are paid by Long Term Care Insurance. Help needed to carry out daily activities like eating, bathing, dressing and using the bathroom etc. when you have a physical disability or cognitive impairment such as dementia caused by Alzheimer’s disease is called Long Term Care. Traditional health insurance, Medicare or Medicaid do not pay for such care. This kind of care is not received in a hospital nor is it intended to cure you. You may need this kind of care for the rest of your life and can receive it in your own home, a nursing home or assisted living facilities.

Health services for those who are 65 or older is provided by Medicare which is a Federal Health Insurance program. Those who are under 65 but have certain disabilities, and those dealing with end stage renal disease requiring dialysis or a transplant are also covered by Medicare. Those suffering from ALS or Lou Gehrig’s disease are also eligible for Medicare. Only specific short term skilled care such as inpatient hospital stays, inpatient skilled nursing facility stays, hospice care and home health care are paid by Medicare. It also pays for some out patient medical services such as doctor visits, diagnostic tests, preventive care and prescription drugs. For a limited time only specialized care in a hospital is provided by Medicare.

A state based program supplemented by Federal Funds is called Medicaid. Medi-Cal is the Medicaid Program in California. According to your state’s guidelines Medicaid aims to provide health care services to people with low-income and asset levels. You must meet your state’s poverty criteria in order to be eligible for Medicaid. It generally means you need to expend all but $2000 of your assets. A welfare program kicking in only after a person’s assets are gone is Medicaid!

Eligible Medicare recipients can buy a form of private supplemental health insurance policy called Medigap which increases the amount of health insurance. Humana, Blue Cross and Blue Shield etc. are private health insurance companies who provide Medigap insurance. The 12 standardized Medigap Policies have the same benefits regardless of which private company sells it to you. Some or all of Medicare’s coinsurance and deductibles can be paid by Medigap Policies. Some costs such as emergency medical care in foreign countries which are not covered by Medicare are covered by Medigap policies.

In summary, Long Term Care costs are covered only by Long Term Care Insurance. To protect your assets and to safe guard yourself and your family in the event you need long term care, seek Long Term Care Insurance.

Maria Smith often writes about long term care insurance.