Long Term Care Insurance & Home Care

If you or a loved one has long-term care insurance (LTC), you may discover that the benefits provided under this program can help pay for home care services. The claim requirements are all done electronically for easier and faster processing, and Care Indeed can even assist you during this process. Consultation with your current insurance provider is recommended to ensure you or your loved one's plan includes coverage for home care services.

What is long-term care insurance?

Long-term care insurance helps to target a wide range of services that may not be covered under a regular health insurance plan, including activities of daily living, light cleaning, bathing, and getting in and out of bed.

Additional benefits of long-term care insurance

Employer-based health coverage will not pay for daily, extended care services. On the other hand, Medicare may cover a short period of in-home care, but only under strict and limiting conditions. Long-term care insurance is designed to help offset care costs when you have a chronic condition, illness, or disability such as Alzheimer's or Parkinson's disease. Many policies will reimburse you for provided care received in a variety of places such as: -An assisted living facility -A nursing home -Your home

How Care Indeed Can Help

Care Indeed works with many LTC providers to assist clients with reimbursement and coordination of care costs. Upon setting up your care plan with us, you will be asked to provide your policy number, provider name, and preference for how you would like to process reimbursements.

There are two payment options for clients with LTC to choose from based on your family's preferences.

Direct Reimbursement:

If you chose this method, Care Indeed would invoice you for your care services, and you would pay us directly. Care Indeed will then submit your care logs to the provider on your behalf. Upon review, your provider will then reimburse you for hours covered under your plan.

Care can start immediately with this method, as your insurance company's reimbursement will be processed after services. Although Care Indeed will be able to submit and coordinate care logs on your behalf, visibility is limited in terms of communicating with your provider regarding other account activities or status related to your claims.

Assignment of Benefits (AOB):

The Assignment of Benefits, or AOB, is a signed authorization agreement between you and your provider. The AOB allows your insurance to pay Care Indeed directly for the care provided once we have submitted the care logs.

Once Care Indeed is authorized to work directly with your provider, all approved hours will be paid directly by your insurance company, depending on your plan. Any additional hours not covered will be invoiced and sent to you by Care Indeed. You can pay for the remaining balance either by an authorized credit card or another agreed-upon payment method.

How do I apply for long-term care insurance?

Similar to other insurance policies, you will need to fill out an application with the company of your choice. The application will request basic contact information and policy-specific medical questions. Most long-term care policies have a maximum payout amount that would limit daily and lifetime payouts received under the policy. Based on this, you will want to select a plan that best fits your needs based on the tradeoff of coverage offered and the policy's premium. Once the application is filed and approved, you will receive your effective policy and begin paying premiums towards your coverage.

When is it too late to apply?

While it is truly never "too late" to apply for long-term care insurance, the premium starts to increase as you age. Additionally, the longer you wait to apply, the more likely you are to be denied. Of applicants aged 70+, 45% of applicants have their applications denied, compared to less than 18% denied for those younger than 55. At a certain age, the premiums charged may begin to outweigh the insurance policy's benefits. There is a significant benefit to purchasing long-term care insurance early in life rather than later.

When can I file a claim?

Though there is no designated filing time, the best moment to file a claim is when you or a loved one is showing signs of needing care. Most long-term care insurance policies involve "elimination periods" or waiting time frames before payouts. Additionally, this elimination period can last anywhere from 30 to 90 days, meaning the payments for home care services will have to come out of pocket until the insurance policy reimburses it.

Additional factors contributing to the cost

Many factors can affect the cost of long-term care insurance for you or your loved one other than simply aging. Some additional factors that play a role in your cost of premium include: -Current Health -Marital Status -Insurance Company Chosen -Type of Coverage Chosen

We're here to help! Call us at (650) 352-4007 if you would like to discuss your options.