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Longterm care insurance is it a scam?
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Medicare & Insurance
Longterm care insurance is it a scam?
Share Medicare dos and don’ts, including eligibility and supplemental insurance.
I have been looking into Longterm Care insurance and I have been deeply disturbedby what I have found out. According to a fraud investigator for the State of New York, only 75% of people who signup fo
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Forums » Health » Medicare & Insurance » Longterm care insurance is it a scam?
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Longterm care insurance is it a scam?
posted at June 1, 2012 12:46 AM EDT
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Posts: 2
First: June 1, 2012 Last: June 4, 2012 |
I have been looking into Longterm Care insurance and I have been deeply disturbedby what I have found out. According to a fraud investigator for the State of New York, only 75% of people who signup for Longterm care insurance will ever collect anything. According to him, most elderly lose thier insurance when they are late or miss a payment in the 10th to 13th year. He says that he's seen elderly lose their coverage while they are still in the hospital. (Bills have a tendancy to get neglected during hospitalization). Has anyone got a story?
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Re: Longterm care insurance is it a scam?
posted at June 1, 2012 7:46 AM EDT
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Posts: 475
First: December 21, 2011 Last: May 24, 2013 |
That sounds about right to me. According to an article I read several years ago in Consumer reports, insurance companies are counting on people dropping out due to increases in premiums or finding they don't have enough funds. People who have paid in usually lose everything they've already paid. Also, remember insurance companies want a guaranteed profit, so premium increases are VERY likely. Response to Longterm care insurance is it a scam?: I have been looking into Longterm Care insurance and I have been deeply disturbedby what I have found out. According to a fraud investigator for the State of New York, only 75% of people who signup for Longterm care insurance will ever collect anything. According to him, most elderly lose thier insurance when they are late or miss a payment in the 10th to 13th year. He says that he's seen elderly lose their coverage while they are still in the hospital. (Bills have a tendancy to get neglected during hospitalization). Has anyone got a story? Posted by fireter |
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Re: Longterm care insurance is it a scam?
posted at June 1, 2012 10:52 AM EDT
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Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
In Response to Longterm care insurance is it a scam?: I have been looking into Longterm Care insurance and I have been deeply disturbedby what I have found out. According to a fraud investigator for the State of New York, only 75% of people who signup for Longterm care insurance will ever collect anything. According to him, most elderly lose thier insurance when they are late or miss a payment in the 10th to 13th year. He says that he's seen elderly lose their coverage while they are still in the hospital. (Bills have a tendancy to get neglected during hospitalization). Has anyone got a story? Posted by fireter You could probably say that about life insurance too. And if it is a problem with people keeping up with their bills during some calamity, it probaly wouldn't just be this bill that would be a concern. Long Term Care insurance is like any other insurance in the "understanding" all the rules scenario. If you don't want to give $$$$$$$ to an insurance company for some sort of a future use, then you can always self-insure: put away the money, invest it wisely so that it is there for a specific event IF and WHEN it may occur. That's my story - I try to cover the bases as good and as high as I can. |
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Re: Longterm care insurance is it a scam?
posted at June 4, 2012 6:18 AM EDT
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Posts: 12532
First: February 29, 2008 Last: May 17, 2013 |
In Response to Longterm care insurance is it a scam?: I have been looking into Longterm Care insurance and I have been deeply disturbedby what I have found out. According to a fraud investigator for the State of New York, only 75% of people who signup for Longterm care insurance will ever collect anything. According to him, most elderly lose thier insurance when they are late or miss a payment in the 10th to 13th year. He says that he's seen elderly lose their coverage while they are still in the hospital. (Bills have a tendancy to get neglected during hospitalization). Has anyone got a story? Posted by fireter I live in an over--55 community. I only know of one person in 12 years that went to a nursing home and died within 3 months but don't know the finances involved. THere is a 97 year old that has home-help care at least in the daytime..she had a mild heart attack recently and is at home now. I was quite friendly with a woman that paid for longterm care for many years but died in the hospital from pneumonia. My own family of around 26 people (at one time was 26 ) only one person went to a nursing home who was my mother. She was there about 4 months and medicare paid for some of it and she had healthcare insurance but no-long term care but it wasn't that costly. I guess if you are rich and can afford it.....why not buy it. I personally don't believe it's worth the sacrifice to pay for it ...if you aren't rich. . |
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Re: Longterm care insurance is it a scam?
posted at June 4, 2012 4:04 PM EDT
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Posts: 2
First: June 1, 2012 Last: June 4, 2012 |
In Response to Re: Longterm care insurance is it a scam?: That sounds about right to me. According to an article I read several years ago in Consumer reports, insurance companies are counting on people dropping out due to increases in premiums or finding they don't have enough funds. People who have paid in usually lose everything they've already paid. Also, remember insurance companies want a guaranteed profit, so premium increases are VERY likely. Response to Longterm care insurance is it a scam? : Posted by Labrat64 Not rich gail! Far from it. I am 62 an am not married. I have one son who can barely support himself. I don't want to be a burden. We had a saying "better fast and violent than log and drawnout". I always thought that I would die young. Ooops! Too late. When my dad died in 2007 we went through hell fighting with medicare and the state and the hospital. Two years after his death medicare finally paid. There won't be anybody to fight for me. |
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Re: Longterm care insurance is it a scam?
posted at June 4, 2012 8:44 PM EDT
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Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
In Response to Re: Longterm care insurance is it a scam?: In Response to Re: Longterm care insurance is it a scam? : Not rich gail! Far from it. I am 62 an am not married. I have one son who can barely support himself. I don't want to be a burden. We had a saying "better fast and violent than log and drawnout". I always thought that I would die young. Ooops! Too late. When my dad died in 2007 we went through hell fighting with medicare and the state and the hospital. Two years after his death medicare finally paid. There won't be anybody to fight for me. Posted by fireter Think you were responding to another poster but longterm care insurance can cover many types of long-term care not just a nursing home (now they want to be called "Skilled Nursing Facilities). Actually SNF only take you if there is no place else for you to be cared for if you are a private payer since they are overwelmed with those that are there either for a short while under the Medicare covered "Rehab" OR those that must be there because they have very limited assets according to the rules and MEDICAID is paying for their personal care in the SNF. Longterm care also pays a certain $$$$$ amount that you pick to cover a per diem amount for in-home care, Assisted Living facilities and Memory care units. MEDICAID does not cover any Assisted Living or inclusive memory care units. My mother is in a Memory care unit - she came from an Assisted Living Facility. I was paying about $ 3200 a month for the Assisted Living facility; now I pay about $ 4200 a month for the memory care unit where there is much more care. There are only (3) reasons that she would have to go to a SNF where I would be paying between $ 6500 - $ 7500 per month. The reasons are because of the care necessary: 1. She cannot be bedridden 2. She cannot have a feeding tube 3. She cannot be on IV therapy My mother may die tomorrow or she may live another 5 - 10 years, who knows. The VA has a program called Aid and Attendance which might help with the charges but you still have to spend down your assets to (currently) about $ 80,000 to apply (that asset figure can change). I own my home free and clear so if I ever have to go somewhere else (god-forbid) I guess my kids could sell it to pay the expenses that my liquid money cannot not cover. But by the time all us baby boomers start getting real old and need more personal care help, the whole system could change cause a whole lot of them are not even prepared for retirement much less some outside force taking care of their personal care needs. I read a recent article somewhere that said that a whole lot of seniors think that Medicare pays for long term care -  . Long term care is not for the rich; nor is it for the poor; it is mostly good for those who have or will have modest to comfortable assets(not just money). I cannot give you a specific figure because that varies. |
Forums » Health » Medicare & Insurance » Longterm care insurance is it a scam?
