| When a good friend of mine inquired where he | | | | provide instant on-line quotes and even |
| could obtain information about medical insurance | | | | applications for the potential insured. I highly |
| for his out-of-state, elderly mother, I told him to | | | | discourage a layperson to purchase insurance in |
| try the Internet.He reported back to me about a | | | | this fashion. A little knowledge can be |
| week later, in desperation: "I am giving up, I am | | | | dangerous.The federal government has mandated |
| too confused." He had taken on an overwhelming | | | | to all states through legislation, the standardized |
| project with his widowed mother, living in another | | | | senior health insurance policy guidelines, which are |
| state. As the only child, and following the sudden | | | | governed and regulated by each state insurance |
| death of his father, it was his responsibility to | | | | department.There are plans for almost every |
| care for his mother.In this world of technology, | | | | level of health. Some are designed and priced for |
| the family unit is often living in different | | | | a less than healthy individual. Others are for a |
| geographical areas and the family members are | | | | person with minimal health concerns. . The whole |
| usually quite involved with their own lives, careers, | | | | concept of insurance is to provide protection for |
| and families. In addition, when both parents are | | | | "unanticipated" sickness or injury, especially |
| alive, often one or both parents are quite | | | | catastrophic expenses, which would devastate a |
| independent and do not require a lot of assistance. | | | | person's net worth. The more small expenses a |
| As time goes on things, of course, change, and | | | | person is willing or able to pay (self-insure), the |
| sometimes change very suddenly. There can be a | | | | lower the rate. I recommend this strategy when |
| crisis, with regard to the health care needs of one | | | | evaluating your insurance options.Another |
| or both aging parents.With our baby boomers | | | | consideration when reviewing various insurance |
| facing this problem in ever increasing numbers, | | | | plans is to look at the company itself. How long |
| and with the information highway in full bloom, | | | | has the company been selling this type of |
| there is a definite need for planning.Protecting | | | | insurance? Do they have a lot of complaints filed |
| your parent's assets and health is a huge and | | | | with the local department of insurance? Are the |
| daunting undertaking, which requires a tremendous | | | | rates stable? Does it pay claims on time? Service? |
| amount of education and practical application. Our | | | | Most agents talk about the rating. These ratings |
| seniors face many diverse responsibilities upon | | | | are as follows: A+, A, A-, B+, B, B-, C+, C, C-, or |
| reaching age 65. To name just a few: Estate | | | | "not rated".Do not be fooled by rating alone. It is |
| planning, taxation, Medicare, social security, wills, | | | | good to have a high rating, but it is far better to |
| insurance, and various other legal and financial | | | | have a company that has longevity, stability, |
| matters. All of these different areas require | | | | innovation, service, and expertise. The problem is |
| expertise from accountants, lawyers, estate | | | | that some companies enter into a market and |
| planners, insurance agents, home brokers, financial | | | | quickly leave without explanation. This does not |
| advisors, and others.The Internet is a good | | | | give security to the policyholder.The most |
| starting point for most people to find resources | | | | important consideration should be a review of the |
| for questions and solutions for your problems. | | | | profit/loss ratio for that product. This will establish |
| There is, however, no replacement for good solid | | | | stability, and longevity in the market. An insurance |
| intelligent advice from an expert.Twenty years | | | | company with a moderate profit in a particular line |
| ago, insurance for elders was sold by "senior | | | | of business will remain in that market. On the |
| insurance specialists", with just a handful of | | | | other hand, a company with losses will make |
| companies in each state. The programs were | | | | changes and possibly even withdraw. This is |
| most often Medi-gap or Medicare supplemental | | | | information not normally available to Internet |
| policies, which covered the expenses not covered | | | | users.Before entering into an insurance contract, |
| by Medicare, including hospital and doctor | | | | the senior person, the family, and other advisors |
| deductibles, durable medical devices, and | | | | must be realistic, and a careful evaluation of the |
| non-approved Medicare costs. Ironically these | | | | entire picture must be examined. The age, the |
| specialists did not sell a lot of nursing care policies, | | | | health of the senior, the financial resources, the |
| even though Medicare paid a national average of | | | | personality and attitude of the senior, and most |
| less than 2% of these expenses. With the advent | | | | importantly the desires of the senior, should all be |
| of "financial and estate planning" and more | | | | considered.Early planning is important, as |
| insurance companies entering this market, a more | | | | qualification becomes increasingly more difficult as |
| broad and diversified product line became available | | | | the applicant's health declines. The senior health |
| to agents, brokers, planners, and seniors.Part of | | | | care market is complex. I will offer some words |
| this new diversification was the "home health care | | | | of advice to attempt to alleviate potential pitfalls. |
| plan", sold by itself, and in conjunction with senior | | | | *Choose a well-informed, seasoned, and service |
| health insurance products. The appeal of the | | | | oriented agent or broker to assist your decision |
| "home health care policy" was that a senior could | | | | making process. The professional can offer |
| stay at home and still receive medical and | | | | invaluable information, but do not be afraid to ask |
| custodial benefits, allowing a person to recuperate | | | | a lot of questions and even get a second opinion. |
| in the comfort of their own home.This was the | | | | *Do not wait until your parent or loved one is |
| answer to a huge problem. The last place an older | | | | sick, or injured. Plan ahead and take the time |
| person wanted to go was a "retirement home", | | | | needed to cover all the options. *Choose an |
| or "rest home", or, God forbid, the "nursing | | | | experienced insurance company. A Company that |
| home." It appeared that seniors could now rely on | | | | has been in the marketplace for a significant time |
| this new innovation without worry of having to | | | | and has maintained a balance of rates and |
| move out of their home environment in the | | | | benefits and sound risk selection with moderate |
| event of a health problem.As with most things," if | | | | rate increases over time is your best bet. *The |
| it is too good to be true".... The home health care | | | | plan should be flexible, with a broad range of |
| policy is no exception. The problem is, there is not | | | | options and benefit selections to the insured. |
| enough coverage for a lengthy illness or | | | | There should be no tricks, or complicated |
| recuperation time. The fact is, the new trend is | | | | language for the coverage. An incredibly low rate |
| toward an "all in one" type facility, allowing for a | | | | is a red flag for trouble in the future. *Do not |
| variety of levels of care all in one location. In | | | | rush or be rushed by an over aggressive sales |
| other words a senior could start off with little or | | | | person.This policy will not be inexpensive and will |
| no health care concerns in an independent, less | | | | need to be read and reviewed for a clear |
| expensive area, and then go to an assisted living, | | | | understanding of the contents. This is one |
| or nursing care facility, all within the same | | | | advantage to the Internet. You are allowed to |
| compound.A "nursing home" requires a nurse on | | | | read indefinitely before you act.A long-term care |
| the premises 24 hours per day, assisted living is | | | | program, with or without insurance coverage, will |
| just eight hours. The advantages to this are | | | | only work if the senior has input into the care |
| financial. The patient or senior is only charged | | | | selection process. If there are any questions |
| according to the care level required during the | | | | about the accreditation of a facility please call the |
| time he or she is admitted to that facility. Another | | | | "Continuing Care Accreditation Commission at |
| benefit is it alleviates a lot of planning because the | | | | 202-783-7286. H. Pritchett is a senior healthcare |
| care is delivered, as it is needed. The medical | | | | specialist and owner of Empire HomeCare |
| attention is available to all residents regardless of | | | | Resources, Inc., an internet company devoted to |
| their current health.Some people are offered a | | | | the support and care of seniors and the diabled. |
| lifetime package, which covers their care for the | | | | He is also the founder of B.R.A.C.E., a non-profit |
| rest of their life, regardless of their current age. It | | | | foundation for the correction of deformites for |
| also allows for social outlets to an otherwise | | | | the financially disadvantaged. He is also a board |
| somewhat isolated group. On-line shopping | | | | member of Great Republic Life Insurance |
| services have become a huge business. It is | | | | company specializing in LTC policies. He and his |
| definitely here to stay and many insurance policies | | | | father James Pritchett introduced the first home |
| are purchased from Internet quotes and on-line | | | | health care insurance policy in the United States in |
| applications.There are literally hundreds of | | | | 1983. He is the author of "caring for a Family |
| thousands of insurance agents and brokers | | | | Member at Home", and the producer of several |
| advertising on the Internet. Most of them will | | | | caregiver videos for stroke victims. |