Friday, August 05, 2005
Knowing when to say when
["Long-Term-Care Insurance," NCPA Daily Policy Digest, 5 August 2005.]
A recent column from The New York Times is the subject of this entry from today's NCPA Daily Policy Digest. While clearly too few people are covered by long-term health policies, it is still important to act as a wise consumer when weighing the purchase of a plan:
Only 10 percent of people over 65 own long-term-care insurance policies while others say they are intimidated by high costs and the bewildering array of benefit levels, deductible periods and other features, says the New York Times.
These policies protect against improbable events and require a lifetime commitment to one insurer; the good news is that many policies now cover home care, assisted living, respite care and hospice care.
But studies show that only a small percentage of policyholders need care for long periods -- four years or more -- so specialists are recommending policies for which the holder pays a larger share of the costs.
- Only 3.6 percent of claims were for care that lasted for four years and 4.3 percent were for more than five years.
- In 76.7 percent of claims, care lasted less than two years.
- About a third of all policyholders had policies that provided benefits for seven years to a lifetime.
Shorter benefit periods make sense in the four states that offer so-called "partnership policies" that shelter a limited amount of assets, and there are alternatives for married couples, such as joint benefits. Buyers can also save by opting for a longer deductible.
Though the one place not to skimp is inflation protection; only 40 percent of new policyholders buy such protection, says the Times.
[Stephen Moses, "Nursing home system in need of reform," The Pittsburg Morning Sun, 22 May 2005.
Stephen A. Moses, "Project Proposal: Controlling Medicaid Long-Term Care Costs," The Flint Hills Center, January 2004.]
["Long-Term-Care Insurance," NCPA Daily Policy Digest, 5 August 2005.]
A recent column from The New York Times is the subject of this entry from today's NCPA Daily Policy Digest. While clearly too few people are covered by long-term health policies, it is still important to act as a wise consumer when weighing the purchase of a plan:
Only 10 percent of people over 65 own long-term-care insurance policies while others say they are intimidated by high costs and the bewildering array of benefit levels, deductible periods and other features, says the New York Times.
These policies protect against improbable events and require a lifetime commitment to one insurer; the good news is that many policies now cover home care, assisted living, respite care and hospice care.
But studies show that only a small percentage of policyholders need care for long periods -- four years or more -- so specialists are recommending policies for which the holder pays a larger share of the costs.
- Only 3.6 percent of claims were for care that lasted for four years and 4.3 percent were for more than five years.
- In 76.7 percent of claims, care lasted less than two years.
- About a third of all policyholders had policies that provided benefits for seven years to a lifetime.
Shorter benefit periods make sense in the four states that offer so-called "partnership policies" that shelter a limited amount of assets, and there are alternatives for married couples, such as joint benefits. Buyers can also save by opting for a longer deductible.
Though the one place not to skimp is inflation protection; only 40 percent of new policyholders buy such protection, says the Times.
[Stephen Moses, "Nursing home system in need of reform," The Pittsburg Morning Sun, 22 May 2005.
Stephen A. Moses, "Project Proposal: Controlling Medicaid Long-Term Care Costs," The Flint Hills Center, January 2004.]
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