Are Voles and Moles Eating Your Profits?
If family members are unable to devote themselves to these functions for an incapacitated relative, two choices exist: A caregiver comes to the home or the patient goes into an assisted living facility.
In either case, the cost is borne by the patient or the patient's family.
Only after the patient has spent down his or her entire life savings to the point where virtually nothing is left will Medicaid take over. The patient is transferred to a public facility, becomes a ward of the state and will receive the barest minimum of care.
Given the current cutting of Medicaid services, this care will be very minimal.
Every year, approximately a half-million American families are financially ruined because they were forced to spend their life savings on long-term care.
The insurance agent by the name of Heidi told us all of the above. We opted for Independence Blue Cross to cover care in an assisted living facility and Penn Treaty to cover home care. Total cost per year: $5,786.12.
Several months ago, Penn Treaty jacked up the annual premiums for our home health care policies by $1,227.48. We decided to talk about it before sending in the check. We dithered.
We called Heidi, who told us that we could save a lot of money if we opted for two years of home health care rather than an open-ended policy.
Whereupon we received two mailings: (1) Penn Treaty canceled the policies for nonpayment and (2) notice of class action litigation vs. Penn Treaty for selling policies at artificially low prices with the intention of raising prices later on. As I understand it, this sounded like a kind of bait-and-switch deal.
Peggy, who is paying into a corporate disability policy, decided to let her Penn Treaty home care plan lapse. We decided to sign me up for two years of home care rather than unlimited. We sent a check for one month at the old rate with the overdue premium notice, requested the two-year coverage and asked to be billed at the lower rate.