| Dental Plans Applications |
| Anthem Blue Cross of California |
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| Blue Shield |
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| Delta Dental MorganWhite |
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| Golden West |
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| Kaiser Permanente |
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| Standard Life MorganWhite |
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How Much Do Insurance Policies Pay for Long-Term
Care?
1. The Daily Maximum
When you buy a policy you choose the amount you want the company to
pay for each day of your care. Most companies allow you to select as
little as $50 daily or as much as $500 daily. When you need care, companies
pay the daily benefit you selected or the actual cost, whichever is
less. Some benefits may be paid as a percentage of another. For instance,
a policy may pay $100 a day for care in a nursing home, 80 percent of
that amount for assisted living in a Residential Care Facility for the
Elderly (RCFE), and 50 percent for home care. Policies sold after October
1, 2001 must pay a minimum of 70% of the daily nursing home benefit
for RCFE care, except for Home Care Only policies that don't cover this
kind of care.
Selecting the Daily Maximum
Because you will be responsible for all expenses not paid by your insurance
policy, you need to decide how much of the daily cost of care you can
pay yourself. Estimate the daily cost of long-term care in your community
and subtract the amount you can afford to pay for each day of your care.
For instance if the cost in your community is $150 a day and you can
afford to pay a co-payment of $50 a day, you will need the insurance
company to pay $100 a day, or $3,000 each month.
To help the benefits of your policy keep up with the
annual increase in the cost of care due to inflation, every insurer
is required to offer you Inflation Protection. Although Inflation Protection
will increase your premium costs, without it you may not be able to
afford to pay the difference between the cost of care when you need
the long-term care services in the future and the amount of benefits
your policy will pay. Remember that long-term care costs are likely
to increase in the future. Unless you choose to add inflation protection,
your benefits will remain static and you will have to pay out-of-pocket
for the future increases in the cost of care.
Example: The average statewide cost
of nursing home care in California in 2002 is $141 a day or $51,465
a year. A policy that pays $141 a day would pay 100% of the daily charges
for care in an average cost nursing home today. However, in approximately
fourteen years, the average cost of care is estimated to double - a
day of care will cost $282 and a year of care $102,930. Without inflation
protection, the difference between the cost of care and the benefit
will grow each year. In less than 14 years a $141 daily benefit may
cover as little as 50 percent of the cost of care.
2. The Maximum Lifetime Benefit
When you buy a long-term care policy, you choose the maximum dollar
amount the policy will pay benefits over your lifetime. The approximate
number of years you want the policy to pay benefits will determine the
Maximum Lifetime Benefit. Policies are available with Maximum Lifetime
Benefit amounts that pay benefits for approximately, one, two, three,
four or five years or for your lifetime. The longer the period of coverage,
the higher the premium. Your Lifetime Maximum Benefit is computed by
multiplying the Daily Maximum benefit you select by the approximate
number of days you want benefits to be paid. For example, the Lifetime
Maximum Benefit will be $36,500 if you select a Daily Maximum benefit
of $100 and want the policy to pay benefits for one year (365 days).
While everyone would like to buy Lifetime coverage
or Unlimited benefits, not everyone can afford to do so. A policy that
pays for a few years can provide valuable coverage, and for some people
that will be all they will need. Don't pass up long-term care insurance
just because you can't afford lifetime coverage.
Selecting the Maximum Lifetime Benefit
No one can predict how many days or years of long-term care a person
will need, or the reason they will require care. Some people can afford
lifetime coverage, others have so little money they would quickly qualify
for Medi-Cal. Choosing the right amount of benefit depends on the premium
you can afford, and the assets you would otherwise have to spend. Since
the premium for Lifetime coverage is not affordable for many people,
here is one method of selecting the Maximum Lifetime Benefit. Choose
the period that is roughly proportional to your current non-housing
assets that you might otherwise have to use to pay for your care. (Remember
that the value of your house is not counted when applying for Medi-Cal).
Long Term Insurance
| Bluecross Long Term |
California Long Term Insurance
| Kaiser Long Term |
Long Term PPO plans|
Long Term Medical plans | Long
Term Dental Insurance |
Long Term Group
Insurance | Long Term Blueshield
| Long Term Health Insurance
|
Long Term Health
plans | Long Term Health net
| Long Term Pacificare | Long
Term Medical Quote |
Long Term Aetna
PPO plans | Long Term Insurance
Quote | Long Term HMO plans
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Long Term Life
Insurance | Long Term Dental
plans
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| Standard Health Plans Applications |
| Aetna |
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| Anthem BC Life and Health Insurance Company Tonik |
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| Anthem Blue Cross of California |
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| Blue Shield of California |
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| Health Net of California |
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| Health Net of California Farm Bureau |
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| Kaiser Permanente |
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| Temporary Health Plans Applications |
| Anthem BC Life and Health Insurance Company |
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| Assurant |
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| Health Net of California |
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| Health Plans |
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