Thursday, June 16, 2022

Which Of The Following Is True Regarding Medicare Supplement Policies

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What Are My Medicare Part A Costs

True Facts from Medicare and You | Medicare Supplement Insurance Policies

Many people get Medicare Part A without a premium if theyve worked the required amount of time under Medicare-covered employment, generally 10 years or 40 quarters and paid Medicare taxes while working . However, your Part A coverage may still include other costs, even after Medicare has paid its share. This may include deductibles, copayments, and/or coinsurance, which can all change from year to year. Your costs may depend on the type of service youre getting and how often.

Medicare Part A cost-sharing amounts are listed below.

Inpatient hospital care:

  • $0 coinsurance for the first 60 days of each benefit period
  • $371 a day for the 61st to 90th days of each benefit period
  • $742 a day for days 91 and beyond per each lifetime reserve day of each benefit period
  • After lifetime reserve days are used up: You pay all costs

Skilled nursing facility care:

  • $0 for days 1 to 20 for each benefit period
  • $185.50 a day for the 21st to 100th days
  • Days 101 and beyond: all costs

What Consumer Protections Apply To Long

California has a long list of consumer protections some of which are listed here.

Renewability: Every individual long-term care policy must be guaranteed renewable.

Guaranteed Renewable means that the insurer may not cancel your coverage unless you do not pay premiums on time. Your coverage may not be cancelled because of your age or your health but the company retains the right to increase premiums if the CDI approves the increase.

Group Coverage Renewability: If you purchase a long-term care certificate through a group, you have the right to either continuation or conversion if your coverage terminates.

Conversion means you will be issued an individual policy containing identical or equivalent coverage regardless of your health or your age. The premium will be calculated on your age at the time the group certificate was issued.

Duty of Honesty, Good Faith and Fair Dealing: Every long-term care insurer and insurance agent owes every applicant and policyholder a duty of honesty, good faith and fair dealing. Among other things, this duty means that advertisements and other marketing materials may not be misleading.

Applicants must be given fair and accurate comparisons of policies. No excessive insurance or inappropriate replacement policies may be sold. High pressure tactics are expressly forbidden. Insurance agents must receive special training in order to sell tong-term care insurance.

Conditions To The Payment/reimbursement Of Benefits

You will need to meet certain “conditions” after the “benefit triggers” have been met before benefits will be available.

Plan of Care: This is a plan written by your doctor or a medical team that establishes your need for care, describes the kind of care you need and the frequency of the required services. The Plan of Care is a familiar document to your doctor, hospital discharge planners, home health agencies and other health care providers who know about long-term care services. Many policies also require that the Plan of Care be updated periodically to reflect any change in your need for care.

Elimination Periods: The elimination period is the period of time you must wait after you qualify for care and are eligible to receive benefits before the company will begin paying or reimbursing you for your covered care. You choose the length of the Elimination Period when you buy the policy. The most common options are 0 days, 30 days, 90 days or 100 days. Some policies only make you meet the Elimination Period once during the life of the policy others apply it again after you have gone for a certain period of time without needing care. In some situations the elimination period will be satisfied by a day of either in-home care or institutional care. The premiums are usually higher for short elimination periods and lower for longer ones. Be sure to ask your long term care insurance agent to explain these very important differences.

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Before Buying Individual Long

  • Has this company increased premiums on policies it has sold to other consumers in California or in other states? Study the personal worksheet or our website.
  • How long has this company been selling long-term care insurance?
  • What Nursing Homes, Residential Care Facilities/Residential Care Facilities for the Elderly and Home Care providers, are near my home and covered by the policy?
  • What are my choices for: Daily Maximum, Lifetime Maximum, Elimination Period and Inflation Protection?
  • If the policy requires an Elimination Period, do I have to meet it only once or more than once during my lifetime?
  • May I hire anyone I choose to provide Personal Care and Homemaker Services under this policy? If not, what are the qualifications that care providers must meet? Policies approved for sale in California must cover independent providers for Personal Care and Homemaker Services.

If the policy waives the premium:

  • How is it waived?
  • Does the waiver apply to all the benefits or only to nursing home care?
  • What happens to any premiums I have already paid?

What Services Do Insurance Policies Cover

Insurance for Senior Citizens and Special Needs Flashcards ...

Insurance policies describe what they will cover, what kind of care they will cover, who can provide the care and conditions that need to be met before a company will pay/reimburse the cost of benefits. Described below are the services required in a long-term care insurance policy approved under current California law. Be aware however, that California law has changed many times over the years and that insurance policies sold in previous years may have different requirements than are shown here.

Facility Coverage: In California, most skilled, intermediate and custodial care is received in nursing homes that are licensed as “skilled nursing facilities”. All long-term care policies except Home Care Only cover this kind of care.

Policies sold after October 2001 are required to include a benefit to cover care in an RCF/RCFE. Some insurance policies sold before October 2001 may also include this benefit. RCF/RCFEs are not nursing homes but living arrangements wherein a person can also receive personal care or supervision. Some RCF/RCFEs are large retirement homes while others are small group homes.

Home Care Coverage: Every long-term care insurance policy called “Home Care Only” or “Comprehensive Long-Term Care” must include at least the following 6 Home Care benefits and other consumer protections which should make it easier to receive care at home.

  • 1. Home Health Care is skilled nursing care or other professional services in your residence.
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    Medicare Supplement Insurance Plans Are Standardized

    Medicare Supplement insurance plans are standardized, mean that that each plan of the same letter must offer the same basic benefits, regardless of which insurance company sells it. The cost of plans, however, can vary among different insurance companies. Medicare Supplement plans are standardized differently in Massachusetts, Minnesota, and Wisconsin.

    All Of The Following Statements About Medicare Supplement

    all of the following statements about medicare supplement insurance policies are correct except is a tool to reduce your risks, there will be a reduction in benefits b, while a Medigap policy only supplements your Original Medicare benefits, if requested, the following items are true with respect to the filing:n You do not need more than one Medicare supplement policy/certificate, You pay the private insurance company a monthly Premium for your Medigap policy, the elimination period will be longer than normal c

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    What Is Inflation Protection

    Inflation Protection is intended to help maintain the value of the benefits you purchase today so they will keep up with future increases in the cost of care. In the past, long-term care costs in California have increased at an annual rate of more than 5%.

    Protecting against the rising cost of care is one of the most important choices you will make. Inflation protection increases the Daily Maximum, the Maximum Lifetime Benefit and other benefit amounts. If you purchase individual long-term care insurance, your insurer must offer you at the time you purchase the policy the option to purchase an inflation protection feature. Your insurer must offer inflation protection which is no less favorable than the following options: Increases benefit levels annually so that the increases are compounded annually at least 5% or a Benefit Increase Option.

    While the premiums are designed to remain level, insurance companies may apply for rate increases that, if approved by the CDI, will increase your premium in the future.

    2. Benefit Increase Option. This option allows you to pay an additional premium to increase the benefit coverage amounts at stated intervals during the life of the policy . There are usually a limited number of increase options offered to you over the life of the policy. If you decide not to exercise this option one or more times when it is offered, you will lose any chances to increase your benefits in the future.

    You Cant Combine Medicare Supplement Insurance Plans With Certain Types Of Health Insurance

    Are Medicare Supplement (Medigap) Plans C and F Ending in 2020? | Compare Medigap Plans Here

    Medicare Supplement insurance plans are meant to work with Original Medicare . It may be illegal for an insurance company to sell you a Medicare Supplement insurance plan if you have another type of insurance, such as Medicare Advantage or Medicaid. If you have a Medicare Advantage plan, you can only apply for a Medicare Supplement insurance plan if you are planning to return to Original Medicare.

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    Can I Afford Long

    Remember that after retirement, income often does not keep pace with inflation. As you age you may have unexpected medical expenses such as prescription drugs or other medical costs that may not be covered by your medical insurance. The loss of a spouse can also result in reduced income. Select a premium you can comfortably afford. Take into consideration that your premium may increase during the years you own the policy. When talking to a long term care insurance agent about long-term care insurance, it is important for you and your agent to understand your financial circumstances so that he or she can tailor a plan best suited to your needs.

    Insurance Companies Price Their Medicare Supplement Insurance Plans Differently

    Medicare Supplement insurance plans come with a monthly premium and insurance companies can set their monthly premiums differently. There are three types of pricing:

    • Community-rated/no-age-rated: The premium is not based on your age
    • Issue-age-rated/entry-age-rated: The premium is based on the age you are when you buy the plan
    • Attained-age-rated: The premium is based on your current age and goes up as you get older

    There can be big cost differences among insurance companies for the same coverage, so you may want to compare prices before enrolling in a plan.

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    Frequently Asked Questions About Medicare Supplement Insurance

    by Christian Worstell | Published April 26, 2021 | Reviewed by John Krahnert

    Medicare Supplement Insurance is an optional type of insurance that can be used in combination with Original Medicare . A Medicare Supplement Insurance plan helps pay for out-of-pocket expenses that are associated with Original Medicare, such as deductibles, coinsurance and copayments, as well as other costs.

    Below are some frequently asked questions related to Medicare Supplement Insurance.

    How Much Does Long

    GP 428 Quiz 1

    The cost of care in the future will be much higher than it is today. California nursing home rates increased at an average rate of over 5% per year during the past twenty years and are likely in the future to continue to increase by at least 5% per year. A 5% annual increase means a year of care that costs $50,000 today will cost twice that amount in 14 years, or $100,000 a year.

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    What Does Medicare Supplement Insurance Cover

    Each Medicare Supplement Insurance plan provides either full, partial or no coverage for each of the following nine basic benefit areas:

  • Medicare Part A coinsurance and hospital costs
  • Medicare Part B copayments and coinsurance
  • The first three pints of blood needed for a transfusion
  • Medicare Part A hospice care copayments and coinsurance
  • Medicare Part A coinsurance for skilled nursing care facility
  • Medicare Part A deductible
  • Medicare Part B excess charges
  • Foreign travel emergency care
  • Each of the 10 types of Medigap plans are standardized across the country in terms of coverage. In other words, a plan type sold by a company in one area of the country must offer the exact same combination of benefits as the same plan type sold by a different company in another part of the country.

    *Coverage for Medicare Supplement Insurance is standardized differently in Minnesota, Wisconsin and Massachusetts.

    How Do I Know If I Am Eligible For Medicare Supplement Insurance

    In order to be eligible for a Medicare Supplement Insurance plan, you must meet each of the following requirements:

  • You must be enrolled in both Part A and Part B of Medicare
  • You must be at least 65 years old or live in a state that allows Medigap coverage for people under 65 who have end-stage renal disease or a qualifying disability*
  • You must live in a state that sells the plan you are interested in purchasing. Not all plans are available in every state
  • *The states that are required to offer Medigap plans for people under the age of 65 include: CA, CO, CT, DE, FL, GA, HI, IL, LA, ME, MD, MA, MI, MN, MS, MO, NH, NJ, NY, NC, OK, OR, PA, SD, TN, TX, OK, VT, WI.

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    How Do I Choose A Qualified Long

    Here are some important things to determine about your prospective agent.

    A qualified long-term care insurance agent should be able to help you sort through the company and benefit choices. Much of the decision making process revolves around your age, health conditions and financial suitability. In order to assist the agent in finding the best long-term care insurance policy for your needs, you need to find a long term care insurance agent you can trust and have a candid conversation with him or her regarding all of these matters.

    A good long term care insurance agent will not just sell you a policy but will be there to help you when you have questions, need to make changes or have a claim. Make sure that the agent you are working with has a good history and track record in providing on-going services to his or her clients. Don’t be shy about asking for references. You can also check out a long term care insurance agent by selecting the “Check License Status” link at the top of this page.

    Before the agent leaves you should be provided with the following documents:

    • Outline of coverage
    • The Buyer’s Guide “Taking Care of Tomorrow”
    • The name, address and phone number of your local HICAP office

    You should get these documents even if you don’t agree to buy a policy that day.

    Long Term Care Insurance

    ðBest Medicare Supplement Plans In Alabama – Alabama Supplemental Insurance

    The California legislature requires the Insurance Commissioner to annually prepare a Consumer Rate Guide for long-term care insurance. This website consists of an overview of long-term care insurance, the types of benefits and policies you can buy, both as an individual and as a member of a group, information on what to consider before purchasing a policy and the premium rate history of each company that sells long-term care insurance in California.

    This website will help answer some of your questions about long-term care insurance. It explains why people may need long-term care and how this type of insurance can help cover the cost for care. Long-Term Care policies most often pay for benefits on a reimbursement basis which means that the payment will be made to you after you have received the covered care and/or incurred the costs and submitted a claim. However, there are some policies that will pay a cash benefit. It is important to understand the coverage provided and how benefits will be paid/reimbursed before you purchase a long-term care insurance policy. When you receive your policy, be sure to read it and ask questions if there is anything in the policy that you don’t understand. The Rate Guide explains how long-term care insurance is structured and what benefits you can buy. A qualified long-term care insurance agent or the Health Insurance Counseling and Advocacy Program can help you with these questions and many others.

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    Choosing An Insurance Company

    An insurance company’s financial standing and track record are important in choosing a long-term care insurance policy. Consumers should consider the rate increase data included in this rate guide along with several other important factors.

    Financial Standing

    A company’s size and ratings are important factors to take into consideration when making your long-term care insurance choice.

    Underwriting Philosophy

    Don’t be discouraged by a company that carefully evaluates your health. Long-term care insurance companies that use firm and consistent underwriting standards should, over the long run, have more stable premiums. This is because they are careful about the risks they accept and likely to have more predictable claims results. It is important that the company carefully reviews your health history, the results of your telephone interview and/or a face-to-face assessment and then makes an offer of insurance based on those results. “Easy-issue” offers mean that a company may be issuing insurance to people who already have serious health conditions and will definitely need long-term care. Such a practice can in turn lead to higher premiums for everyone who bought insurance from that company.

    Group Self-Insured Plans

    You Get What You Pay For

    Longevity in the Long-Term Care Insurance Business

    Final Thoughts

    How Do I Sign Up For Medicare Part A

    If you need to manually enroll in Medicare Part A, you can do so through Social Security or the Railroad Retirement Board . You can sign up in a few different ways:

    • Online: Visit the Social Security website to apply for Medicare Part A and/or Part B.
    • : Call Social Security at 1-800-772-1213 . Representatives are available Monday through Friday, from 7AM to 7PM.
    • In-person: Visit your local Social Security office to apply.
    • If you worked for a railroad, contact the RRB to apply at 1-877-772-5772. . You can call Monday through Friday, 9AM to 3:30PM, to speak to an RRB representative.

    You may be subject to a late-enrollment penalty if you do not enroll in Medicare Part A when you are first eligible to do so. If you do not automatically qualify for Medicare Part A, you can do so during your Initial Enrollment Period, which starts three months before you turn 65, includes the month you turn 65, and lasts for three additional months after you turn 65.

    If you dont sign up during your Initial Enrollment Period, you may be able to sign up during the General Enrollment Period that takes place every year from January 1 to March 31 your coverage would start on July 1.

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