| When a good friend of mine inquired where he | | | | thousands of insurance agents and brokers |
| could obtain information about medical insurance | | | | advertising on the Internet. Most of them will |
| for his out-of-state, elderly mother, I told him to | | | | provide instant on-line quotes and even |
| try the Internet. | | | | applications for the potential insured. I highly |
| He reported back to me about a week later, in | | | | discourage a layperson to purchase insurance in |
| desperation: "I am giving up, I am too confused." | | | | this fashion. A little knowledge can be dangerous. |
| He had taken on an overwhelming project with his | | | | The federal government has mandated to all |
| widowed mother, living in another state. As the | | | | states through legislation, the standardized senior |
| only child, and following the sudden death of his | | | | health insurance policy guidelines, which are |
| father, it was his responsibility to care for his | | | | governed and regulated by each state insurance |
| mother. | | | | department. There are plans for almost every |
| In this world of technology, the family unit is | | | | level of health. Some are designed and priced for |
| often living in different geographical areas and the | | | | a less than healthy individual. Others are for a |
| family members are usually quite involved with | | | | person with minimal health concerns. The whole |
| their own lives, careers, and families. In addition, | | | | concept of insurance is to provide protection for |
| when both parents are alive, often one or both | | | | "unanticipated" sickness or injury, especially |
| parents are quite independent and do not require | | | | catastrophic expenses, which would devastate a |
| a lot of assistance. As time goes on things, of | | | | person's net worth. The more small expenses a |
| course, change, and sometimes change very | | | | person is willing or able to pay (self-insure), the |
| suddenly. There can be a crisis, with regard to the | | | | lower the rate. I recommend this strategy when |
| health care needs of one or both aging parents. | | | | evaluating your insurance options. Another |
| With our baby boomers facing this problem in | | | | consideration when reviewing various insurance |
| ever increasing numbers, and with the information | | | | plans is to look at the company itself. How long |
| highway in full bloom, there is a definite need for | | | | has the company been selling this type of |
| planning. Protecting your parent's assets and health | | | | insurance? Do they have a lot of complaints filed |
| is a huge and daunting undertaking, which requires | | | | with the local department of insurance? Are the |
| a tremendous amount of education and practical | | | | rates stable? Does it pay claims on time? Service? |
| application. Our seniors face many diverse | | | | Most agents talk about the rating. These ratings |
| responsibilities upon reaching age 65. To name just | | | | are as follows: A+, A, A? B+, B, B? C+, C, C? or |
| a few: Estate planning, taxation, Medicare, social | | | | "not rated." Do not be fooled by rating alone. It is |
| security, wills, insurance, and various other legal | | | | good to have a high rating, but it is far better to |
| and financial matters. All of these different areas | | | | have a company that has longevity, stability, |
| require expertise from accountants, lawyers, | | | | innovation, service, and expertise. The problem is |
| estate planners, insurance agents, home brokers, | | | | that some companies enter into a market and |
| financial advisors, and others. | | | | quickly leave without explanation. This does not |
| The Internet is a good starting point for most | | | | give security to the policyholder. The most |
| people to find resources for questions and | | | | important consideration should be a review of the |
| solutions for your problems. There is, however, | | | | profit/loss ratio for that product. This will establish |
| no replacement for good solid intelligent advice | | | | stability, and longevity in the market. An insurance |
| from an expert. Twenty years ago, insurance for | | | | company with a moderate profit in a particular line |
| elders was sold by "senior insurance specialists," | | | | of business will remain in that market. On the |
| with just a handful of companies in each state. | | | | other hand, a company with losses will make |
| The programs were most often Medigap or | | | | changes and possibly even withdraw. This is |
| Medicare supplemental policies, which covered the | | | | information not normally available to Internet |
| expenses not covered by Medicare, including | | | | users. Before entering into an insurance contract , |
| hospital and doctor deductibles, durable medical | | | | the senior person, the family, and other advisors |
| devices, and non-approved Medicare costs. | | | | must be realistic, and a careful evaluation of the |
| Ironically these specialists did not sell a lot of | | | | entire picture must be examined. The age, the |
| nursing care policies, even though Medicare paid a | | | | health of the senior, the financial resources, the |
| national average of less than 2% of these | | | | personality and attitude of the senior, and most |
| expenses. With the advent of "financial and estate | | | | importantly the desires of the senior, should all be |
| planning" and more insurance companies entering | | | | considered. Early planning is important, as |
| this market, a more broad and diversified product | | | | qualification becomes increasingly more difficult as |
| line became available to agents, brokers, planners, | | | | the applicant's health declines. The senior health |
| and seniors. Part of this new diversification was | | | | care market is complex. I will offer some words |
| the "home health care plan," sold by itself, and in | | | | of advice to attempt to alleviate potential pitfalls. |
| conjunction with senior health insurance products. | | | | *C hoose a well-informed, seasoned, and service |
| The appeal of the "home health care policy" was | | | | oriented agent or broker to assist your decision |
| that a senior could stay at home and still receive | | | | making process. The professional can offer |
| medical and custodial benefits, allowing a person to | | | | invaluable information, but do not be afraid to ask |
| recuperate in the comfort of their own home. | | | | a lot of questions and even get a second opinion. |
| This was the answer to a huge problem. The last | | | | *Do not wait until your parent or loved one is |
| place an older person wanted to go was a | | | | sick, or injured. Plan ahead and take the time |
| "retirement home," or "rest home," or, God forbid, | | | | needed to cover all the options. *C hoose an |
| the "nursing home." It appeared that seniors could | | | | experienced insurance company. A Company that |
| now rely on this new innovation without worry of | | | | has been in the marketplace for a significant time |
| having to move out of their home environment in | | | | and has maintained a balance of rates and |
| the event of a health problem. As with most | | | | benefits and sound risk selection with moderate |
| things," if it is too good to be true." ... The home | | | | rate increases over time is your best bet. *T he |
| health care policy is no exception. The problem is, | | | | plan should be flexible, with a broad range of |
| there is not enough coverage for a lengthy illness | | | | options and benefit selections to the insured. |
| or recuperation time. The fact is, the new trend is | | | | There should be no tricks, or complicated |
| toward an "all in one" type facility, allowing for a | | | | language for the coverage. An incredibly low rate |
| variety of levels of care all in one location. In | | | | is a red flag for trouble in the future. *Do not |
| other words a senior could start off with little or | | | | rush or be rushed by an over aggressive sales |
| no health care concerns in an independent, less | | | | person. This policy will not be inexpensive and will |
| expensive area, and then go to an assisted living, | | | | need to be read and reviewed for a clear |
| or nursing care facility, all within the same | | | | understanding of the contents. This is one |
| compound. A "nursing home" requires a nurse on | | | | advantage to the Internet. You are allowed to |
| the premises 24 hours per day, assisted living is | | | | read indefinitely before you act. |
| just eight hours. The advantages to this are | | | | A long-term care program, with or without |
| financial. The patient or senior is only charged | | | | insurance coverage, will only work if the senior |
| according to the care level required during the | | | | has input into the care selection process. If there |
| time he or she is admitted to that facility. Another | | | | are any questions about the accreditation of a |
| benefit is it alleviates a lot of planning because the | | | | facility please call the "Continuing Care |
| care is delivered, as it is needed. The medical | | | | Accreditation Commission at 202-783-7286. |
| attention is available to all residents regardless of | | | | By William H. Pritchett This article is free for |
| their current health. Some people are offered a | | | | republishing |
| lifetime package , which covers their care for the | | | | Source: |
| rest of their life, regardless of their current age. It | | | | In 1984, William Pritchett, Jr. developed the first |
| also allows for social outlets to an otherwise | | | | Home Health Care plan of its kind, which |
| somewhat isolated group. On-line shopping | | | | revolutionized the insurance industry in this |
| services have become a huge business. It is | | | | market. The program was developed to allow |
| definitely here to stay and many insurance policies | | | | seniors to recuperate in the comfort of their own |
| are purchased from Internet quotes and on-line | | | | ho.me as an alternative to assisted living facilities. |
| applications. There are literally hundreds of | | | | This idea has grown into an entire industry. |