Long term health care insurance is a specific kind of health insurance, designed to help cover some of the costs that are incurred when a person needs long term health care. You may need this type of insurance if you, or a family member, needs hospice care, assistance with day to day activities, or has Alzheimer’s or other serious illnesses or diseases.
Long term health care insurance may cover some medical bills that Medicare does not cover. The cost of this insurance will vary depending on provider, and also on which type of policy you choose. You will need to select a daily benefit amount, which can range anywhere from $50.00 to $500.00 per day. You will be expected to pay out of pocket for whatever medical care costs exceed that amount on a given day. Some plans will allow you to select a monthly amount instead, which will give you more flexibility about how things are paid for.
Another feature you need to look for is how much will be covered for care that is given in the home, or at a nursing home, hospice, or other care facility. You can select the same amount to be covered at each place. Or, you can choose to have 50% or 75% of the costs of home care to be covered, (which will result in significantly less coverage for care that was given at a facility). You choose the Maximum Lifetime Benefit you want the policy to provide. (This will affect the cost of the policy). This might be called “lifetime” or “unlimited” coverage. You can get a “Comprehensive” policy, that covers a wider range of care settings and services, or a “facility care only” type of policy, (which doesn’t cover the cost of care provided in the home).
This type of health insurance typically covers care and services given in your home (from medical care and personal care, to meal preparation and housekeeping), adult day health care centers, hospice care, respite care, accredited residential care facilities, nursing homes, and special care facilities for people with Alzheimer’s. It does not cover care or services provided by a family member (unless that person is a regular employee of the organization providing the care). It will not cover services provided outside of the United States, services resulting from an act of war, or care from a government facility. Suicide attempts and intentionally self inflicted injuries are not covered, and neither are services for alcohol or drug addiction.
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