Alert
Close

Watch the NASCAR race on Saturday at the Bristol Motor Speedway. Join the Drive to End Hunger!

HIGHLIGHTS

Open

2014 NATIONAL EVENT

Health & Wellness
AARP Auto Buying Program

DRIVER SAFETY

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

Contests and
Sweeps

Safe Driving in 2014 Sweepstakes

Learn how AARP Driver Safety can help you stay safe—and enter for a chance to win $1,000. See official rules. 

Download the ipad App

AARP-iPad-ePub-app

KEEP BRAIN ACTIVE!

AARP Games - Play Now!

LEARNING centers

Get smart strategies for managing health conditions.


Arthritis

Heart Disease

Diabetes

Most Popular

Viewed

share your Thoughts

What does the health care law mean to you? Your story is important. We read and learn from every story and it helps us in our educational efforts. We may even use your comments (with permission) to brief legislators, inspire readers and more. Please share your story with us. Do

Oregon

Long-Term Care Decisions Due Sooner

New law allows consumers to challenge claim denial

People with long-term care insurance are getting a break.

Under a state law that went into effect July 1, insurers must promptly pay undisputed claims for long-term care, such as bills for assisted living and home health aides. Consumers may appeal denials to an independent third party.

Sign up for the AARP Health Newsletter.

Before the changes went into effect, there was nothing a consumer could do — short of a lawsuit — about a rejected claim or when a decision to pay the claim was drawn out for months, said Kevin Jeffries, consumer liaison for the Oregon Insurance Division.

In 2010 and 2011, one in eight long-term care claims filed by Oregon residents was rejected.

Before the law, policyholders or their families had to continue paying the bills or drop home health care services or move out of the care facility, Jeffries said.

"You can imagine the stress and strain," he said.

Here's how the law works: Insurance companies must pay any undisputed claim within 30 days. If the insurer denies a claim, the consumer must first appeal directly to the insurance company.

If the claim is denied a second time, the consumer is entitled to a review by an independent organization. The consumer can choose from among five organizations that meet state qualifications. The insurance company must pay for the review and is bound by the results.

AARP backed changes

AARP was among the organizations that pushed for adoption of the new law.

"This is one piece of a broader puzzle," said Jerry Cohen, AARP Oregon state director. "How [else]does anyone start to plan ahead and count on, in this case, an insurance policy that's really going to be of value when you need it?"

The law applies to long-term care policies sold or renewed after July 1. A policy that was sold or renewed before July 1 will not be subject to the law until its next renewal date.

Ron Fredrickson, manager of the consumer advocacy team at the Oregon Insurance Division, said he hopes the prospect of an outside review will cause insurance companies to apply greater scrutiny before denying a claim.

The demand for long-term care services is bound to grow, with the U.S. population age 85 and older expected to increase by 69 percent over the next 20 years, according to the AARP Public Policy Institute (PPI) (pdf).

By 2032, PPI projects, Oregon's 85-plus population will grow by 73 percent.

But few people have long-term care policies; Fredrickson said just 6 percent of Oregonians 45 or older have a policy.

Next: Pricey premiums. »

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Woman trying on glasses in optometrists shop

Members save up to 60% on eye exams and 30% on glasses at JCPenney Optical.

Prescription medication spilling out of bottle

Members get a free Rx card from AARP® Prescription Discounts provided by Catamaran.

AngiesList

Members can save 25% to 45% on their Angie's List membership.

Caregiving walking

Caregiving can be a lonely journey, but AARP offers resources that can help.