Long-Term Care Insurance: Buying the Right Stuff
Murphy Law Firm, Inc. — Tempe, Arizona
Before you purchase any type of long-term care insurance, talk to an experienced lawyer.
At Murphy Law Firm, we help people to avoid making the mistake of purchasing the wrong type of long-term care insurance. If you are considering this option or have an existing policy already — contact us for an initial consultation to make certain that whatever policy you have is the right one for your needs.
Purchasing Long-Term Care Insurance for the First Time
The biggest problem most people face in long-term care planning is the high cost of long-term care insurance. Questions to ask before purchasing long-term care insurance include:
- What services are covered?
- When does the policy take effect?
- How much will be benefits be?
- Is there a lesser rate for home care?
- How long will the benefits last?
- Are there different benefits for assisted living versus nursing home care?
- Are a certain number of days required between stays?
- Will the plan cover the entire cost or only a portion?
- Are preexisting conditions excluded from coverage?
If you expect to be on a fixed income in your advanced years, as most people are, the most important question to ask is whether or not the premium rates you pay can be raised and if so, when and for what reasons.
If You Already Have Long-Term Care Insurance
Always look for the date of when the policy was issued. The critical date is August 21, 1996, which is the date that the Health Insurance Portability and Accountability Act of 1996 (HIPAA) was signed into law. HIPAA significantly restricted the conditions that insurers could impose to trigger coverage, but this only applies to policies issued after the enactment of HIPAA.
In our experience, any policy issued prior to August 1996 is highly suspect and should be reviewed very closely by someone knowledgeable in long-term care insurance. Most pre-August 1996 policies are not worth paying for. There are two ways to handle this: Either a rider should be added to your current policy or you should try to purchase a new policy, if at all possible.
Major Credit Cards Accepted — Se Habla Español
Serving Maricopa County and Pinal County Since 1992
Contact elder law attorney Thomas Murphy at our Tempe, Arizona, law offices to schedule an initial consultation.
Relevant Resources
ALTCS Alert: AHCCCCS to Begin Issuing Liens on the Homes of Nursing Home Patients
Arizona Health Care Cost Containment System (AHCCS) Verification Checklist - Single Person
Arizona Health Care Cost Containment System (AHCCS) Verification Checklist - Married
