Long Term Care Insurance
Long-term care insurance pays the cost of nursing home care or home health services to policyholders who are no longer able to care for themselves. It may also pay for care in assisted living facilities and adult day care centers. The care covered by long-term care insurance policies include providing assistance with the activities of daily living, which includes activities such as bathing, dressing, and eating.
Long-term care insurance provides a wide-range of medical and support services, including:
- Daily care for degenerative conditions
- Medical attention for prolonged illnesses
- Assistance for those with cognitive disorders
While typically providing for older individuals, long-term care policies may also give coverage for long-term care which is needed as a result of accidents or illnesses that tend to affect younger individuals, such as multiple sclerosis.
Assistance for a Growing Number of People
This year, about 9 million Americans over the age of 65 will need long-term care services. By 2020, that number will increase to 12 million. 40% of people currently receiving long-term care are adults aged 18 to 64 years old, according to the U.S. Department of Health and Human Services.
Long-term care insurance has been one of the fastest-growing types of insurance sold in recent years. There are over 100 insurance companies now sell long-term care policies. Unfortunately, years ago, insurance agencies oversold polices at a price that wouldn’t support future benefit payments.
Now that policyholders are aging and need to claim their benefits, some insurance companies are engaging in bad faith practices in order to maximize their own profits. Sadly, senior citizens are left financially destitute when their claims are denied, and they must pay the crushing cost of nursing home care out of their own pockets.
Fight Bad Faith Practices
Unlike many other types of insurance premiums, long-term care insurance premiums can increase. As policyholders grow older, premium costs can increase at an enormous rate. Often, senior citizens on fixed incomes can no longer afford the premiums and must let their long-term care insurance policies lapse. In addition to raising policyholders’ premiums to unbearable amounts in order to force a policy lapse, insurance companies attempt to reduce benefits payments to policyholders in many ways.
The process of obtaining payment for a claim can be extremely difficult, frustrating and time-consuming. Insurance companies often inundate policyholders with confusing and burdensome paperwork. People in need of these insurance benefits often do not have the strength or ability to fight with their insurance company, and are often cognitively impaired.
Long-term care insurance companies will also deny claims based upon the “fine print” in their policies pertaining to the conditions under which benefits are to be paid. Insurance companies interpret plan terms to advance their own interests and deny or limit benefits. Some insurance companies engage in tactics such as denying receipt of documents sent to them, utilizing biased doctors and nurses to justify denials, and ignoring or failing to advise insureds about benefits to which they are entitled.
Retain a Firm with Past Recoveries Worth Millions
If you or a loved one have been victimized by a long-term care insurance company, we can help. Our Florida insurance law attorneys and staff members at Danahy & Murray will take the time to listen to your problems and can help you sort out the issues involved in your case.