Long Term Care Insurance Essay
Long Term Care Insurance: what is it? How does it Work? Individual / Group? Policy types and characteristics? ADL triggers? Consumer utilization? Taxation?
Answer:
Long Term Care Insurance is a kind of insurance product that sold in the USA, UK and Canada. The main purpose of it is to help or provide the cost of long–term care that is spent in a predetermined period. This kind of insurance covers generally care not covered by health insurance, Medicaid and Medicare. Persons of all age group can use it because age is not a determining factor when talk about the need for long-term care
The policies of long term care insurance are very different in term of other insurance policies that’s why at the individual level it is difficult to examine the individual policy. According to this policy, …show more content…
the definition of care is when a person does not perform the activities of his or her daily living without any helper like he or she does not eat. Take bath, dressing, toileting, transferring and movement. In simple words, when a person is handicapped or seriously injured, or having any mental problem it needs special care. The level of ADLs criterion is very from company to company. The other difference lies between physical assistance or look after or supervision of any activity. But some common examples of extra care are:
• Doctors advice about any specific care
• Necessity of medical care
• When mental and cognition activities are impaired
• Need of prior hospitalization (at least three days, it is rarely included in new policies)
According to statistics at 1 in 3 Americans are relying on some kind of long term care currently and as life expectancy continues this number is increased over the period of time. LTC insurance is bought as a stand-alone insurance. It can be taken in conjunction with term life insurance that is called “rider” or add-on. Many people who are around and over 50 usually purchase it because generally they realize that it is the cost of their parents’ care (Lipson, 2002).
Usually individuals take this type of insurance is especially for those who needs long-term care but generally they are not sick in term of traditional sickness, but they are unable to do their basic activities of daily routine.
The Affordable Care Act (ACA) handle this type of insurance care under the law of Community Living Assistance Services and Supports Act (CLASS), under this law a voluntary long term care insurance system is established that makes this act vast so the coverage of this policy becomes more affordable for a huge numbers of Americans.
If anyone takes long term care insurance then you should care of these aspects:
• He or she pays monthly premiums (the amount of it is increased over the period of time).
• If individual buy this policy, it is useful when you are young and enjoys a sound healthy (in this condition the amount of premium costs will decrease and you just pay premiums for a longer time period).
• If you're age increased then you pay higher premium costs (it may exclude from coverage).
Type of policies
In USA these two types of long term care policies are offered
• Traditional policies: these are very common policies that are offered like automobile insurance (its premiums, are paid on continues basis) If this policy is unused then no premiums are returned.
• Combination or Hybrid policies: these policies are the Combination life and long term care insurance. In this type, the Premiums are normally paid on a one-time basis (the period of it is two to ten years). If anyone cannot use it then premiums returned in the shape of a tax-free life insurance benefits.
ADL Triggers
The Bathing or washing, Dressing, eating, and feeding oneself through plate, cup, table, or by a feeding tube, or intravenously, ¬ unable to maintain control of bowel or bladder function, the ability to perform activities of personal hygiene, including caring of a catheter or colostomy bag, toileting," getting to and from and getting on and off the toilet, performing associated personal hygiene functions. Transferring, moving into and out of a bed, chair, or wheelchair and etc. (Richard A. Dulisse,
2003).
Consumer Utilization
People use health care services due to many reasons:
• They want to cure the illnesses and try to improve health conditions,
• They want to mend their breaks and tears,
• They want to prevent or delay their future health care issues,
• They want to reduce their sufferings of pain
• They want to increase their quality of life
• They want to gather information about their health status and other prognosis.
Health care utilization can be adapted or inappropriate, of high or low quality so people used consumer utilization to investigate their health related issues (Robert F. Rich, 2005).
Taxation
As age increased the chances of long-term care is also increased and it can help to cover long-term care expenses. The major tax that you should pay is income tax. This type of insurance policy just gives the coverage only for long-term care services like services of necessary diagnostic, therapeutic, preventive, curing, mitigating, treating and rehabilitative. This policy also provides maintenance or personal care services (Poterba, 2007).
Bibliography
Lipson, B. (2002). Choosing the Right Long-Term Care Insurance. NewYork: John Wiley & Sons.
Poterba, J. M. (2007). Tax Policy and the Economy. London: MIT Press.
Richard A. Dulisse, K. S. (2003). Essentials of Long-Term Care Insurance. NewJersey: American College.
Robert F. Rich, C. T. (2005). Consumer Choice: Social Welfare and Health Policy. London: Transaction Publishers.
Answer:
Long Term Care Insurance is a kind of insurance product that sold in the USA, UK and Canada. The main purpose of it is to help or provide the cost of long–term care that is spent in a predetermined period. This kind of insurance covers generally care not covered by health insurance, Medicaid and Medicare. Persons of all age group can use it because age is not a determining factor when talk about the need for long-term care
The policies of long term care insurance are very different in term of other insurance policies that’s why at the individual level it is difficult to examine the individual policy. According to this policy, …show more content…
the definition of care is when a person does not perform the activities of his or her daily living without any helper like he or she does not eat. Take bath, dressing, toileting, transferring and movement. In simple words, when a person is handicapped or seriously injured, or having any mental problem it needs special care. The level of ADLs criterion is very from company to company. The other difference lies between physical assistance or look after or supervision of any activity. But some common examples of extra care are:
• Doctors advice about any specific care
• Necessity of medical care
• When mental and cognition activities are impaired
• Need of prior hospitalization (at least three days, it is rarely included in new policies)
According to statistics at 1 in 3 Americans are relying on some kind of long term care currently and as life expectancy continues this number is increased over the period of time. LTC insurance is bought as a stand-alone insurance. It can be taken in conjunction with term life insurance that is called “rider” or add-on. Many people who are around and over 50 usually purchase it because generally they realize that it is the cost of their parents’ care (Lipson, 2002).
Usually individuals take this type of insurance is especially for those who needs long-term care but generally they are not sick in term of traditional sickness, but they are unable to do their basic activities of daily routine.
The Affordable Care Act (ACA) handle this type of insurance care under the law of Community Living Assistance Services and Supports Act (CLASS), under this law a voluntary long term care insurance system is established that makes this act vast so the coverage of this policy becomes more affordable for a huge numbers of Americans.
If anyone takes long term care insurance then you should care of these aspects:
• He or she pays monthly premiums (the amount of it is increased over the period of time).
• If individual buy this policy, it is useful when you are young and enjoys a sound healthy (in this condition the amount of premium costs will decrease and you just pay premiums for a longer time period).
• If you're age increased then you pay higher premium costs (it may exclude from coverage).
Type of policies
In USA these two types of long term care policies are offered
• Traditional policies: these are very common policies that are offered like automobile insurance (its premiums, are paid on continues basis) If this policy is unused then no premiums are returned.
• Combination or Hybrid policies: these policies are the Combination life and long term care insurance. In this type, the Premiums are normally paid on a one-time basis (the period of it is two to ten years). If anyone cannot use it then premiums returned in the shape of a tax-free life insurance benefits.
ADL Triggers
The Bathing or washing, Dressing, eating, and feeding oneself through plate, cup, table, or by a feeding tube, or intravenously, ¬ unable to maintain control of bowel or bladder function, the ability to perform activities of personal hygiene, including caring of a catheter or colostomy bag, toileting," getting to and from and getting on and off the toilet, performing associated personal hygiene functions. Transferring, moving into and out of a bed, chair, or wheelchair and etc. (Richard A. Dulisse,
2003).
Consumer Utilization
People use health care services due to many reasons:
• They want to cure the illnesses and try to improve health conditions,
• They want to mend their breaks and tears,
• They want to prevent or delay their future health care issues,
• They want to reduce their sufferings of pain
• They want to increase their quality of life
• They want to gather information about their health status and other prognosis.
Health care utilization can be adapted or inappropriate, of high or low quality so people used consumer utilization to investigate their health related issues (Robert F. Rich, 2005).
Taxation
As age increased the chances of long-term care is also increased and it can help to cover long-term care expenses. The major tax that you should pay is income tax. This type of insurance policy just gives the coverage only for long-term care services like services of necessary diagnostic, therapeutic, preventive, curing, mitigating, treating and rehabilitative. This policy also provides maintenance or personal care services (Poterba, 2007).
Bibliography
Lipson, B. (2002). Choosing the Right Long-Term Care Insurance. NewYork: John Wiley & Sons.
Poterba, J. M. (2007). Tax Policy and the Economy. London: MIT Press.
Richard A. Dulisse, K. S. (2003). Essentials of Long-Term Care Insurance. NewJersey: American College.
Robert F. Rich, C. T. (2005). Consumer Choice: Social Welfare and Health Policy. London: Transaction Publishers.