Long-term Care Insurance Survival Tips

Long-term care may be expensive. The rates would usually depend on the kind of benefit which you prefer to receive when you are under a state of long-term care.

But long-term care comes in handy for almost everyone since Medicaid does not include this service in their coverage. Moreover, long-term care is quite different from the typical medical care that you receive in the hospital or private medical treatment. With long-term care being expensive, the State of Michigan, particularly the Michigan Department of Labor and Economic Growth laid down several rules to regulate long-term care within the state.

Several insurance companys in Michigan offer long-term care policies which provides either only for home health care or for facility care (Michigan Department of Labor). Michigan Department of Labor said that State laws require a policy sold as a long-term care policy to provide home health care benefits at a minimum coverage amount of one-half the coverage amount of nursing home care. An example, according to the Michigan Department of Labor and Economic Growth, is if a long-term care policy provides a coverage amount of $100.00 per day for nursing home care then that policy must provide a coverage amount of a minimum $50.00 per day of home care. Additional policy requirements include 'intermediate and basic care in a coverage amount not less than the amount of coverage for skilled care (Michigan Department of Labor).' The Department said Intermediate/basic/custodial nursing care is care that includes assistance in activities of daily living that can be provided by persons without medical skill in a licensed intermediate or skilled nursing care facility. On the other hand, skilled care is 'that requires daily attendance, monitoring, evaluation and/or observation by licensed skilled nursing care facility (Michigan Department of Labor).'

Another proviso is that 'the policy cannot limit or exclude coverage due to any illness, any health care provider, any geographical location (except Mexico and Canada), any treatment, medical condition or accident (Michigan Department of Labor).' The Department states that the only exception to such provision is the necessity of long-term care as a result of an automobile accident, in which case, the individual’s no-fault auto insurance provision would become effective.

As for the period to enjoy the trial coverage, a period of thirty days, called the 'free look period,' where an individual may experience the benefits of the coverage and should he decide to forego with the policy, he is under no obligation and 'will receive a total refund of any premiums he paid (Michigan Department of Labor).'

Another particular proviso is when a company that 'previously offered group employees a long-term care policy but then, terminates the benefit, must offer employees individual long-term coverage with similar benefits of the prior group coverage (Michigan Department of Labor).'

In case of a cancellation of policy by a policy holder, it is mandated by the state law that the company must 'provide a pro-rated refund of premiums paid for the current year (Michigan Department of Labor).'

Pre-existing conditions, such as mental or nervous disorders, alcoholism or drug addictions and illness arising from war/armed forces, illegal activities and suicide, the policy coverage can be limited (Michigan Department of Labor). However, there can be no such limitation whatsoever in 'Alzheimer’s or related diseases (Michigan Department of Labor).'

Since the industry of long-term care insurance has been regulated in the state of Michigan, it has been relatively easier to avail of such coverage with more convenience and features to benefit the plan holder. It is worth the investment and a try but you have to be keen in your selection of the right long-term care insurer for you.

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