Insurance | FJG/FYI
An Important Consideration When Reviewing A Potential LTC Policy
What should you look for when considering
a long term care (LTC) insurance policy for
your employees? A very important—and
often overlooked—benefit to the employee
is the Home Health Care (HHC) feature.
As you review LTC products, you’ll often
notice a reduced benefit for the HHC
feature—often stated at 50%. As this is the
most critical component of an LTC plan,
according to employees (1), the coverage
amount should be the maximum available
(at least 100% HHC benefit; some
coverages go up to 130%) to allow them to
have their health needs managed at home
for as long as possible, versus in a nursing
care facility.
Unfortunately, HHC expenses are often presented as lower than those of a nursing care facility. Though this is true in some instances (normally the comparison shows HHC for 8 hours per day), it is often the case that HHC expenses are dramatically higher than those of a nursing care facility, especially when 24-hour HHC coverage is required (1).
Additionally, one must factor in the future
of HHC. With the miniaturization of
medical equipment such as oxygen tanks,
we have already seen how people canreceive health services at home that were
formerly only available in a facility—and
can increase their mobility as well! As home
health equipment continues to become
more sophisticated and maneuverable, and
HHC services more widely available, we
will see a trend towards an increase in home
medical service usage.
You can help your employees with their future needs now by structuring their LTC policy to provide maximum available HHC cost coverage, potentially giving them the medical care they need in the comfort of their own home.
(1) Employee Benefit News. Financial, EAP Counseling Can Improve Fiscal, Physical Health. March 1, 2007.