John Hancock Financial raises rates on long-term care, sees backlash from consumers

John Hancock Financial, one of Colorado’s largest insurance companies, recently raised rates for long-term care coverage significantly. Some consumers saw increases as high as 90%, while other saw increases of half that number. The rate hikes have sparked the ire of consumers who say that these new rates are excessive. The state’s Department of Insurance is not being inundated with complaints concerning the matter, though regulators claim that the rates are somewhat justified. Long-term care insurance provides coverage for those that must take advantage of nursing homes or various types…

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Avoiding misconceptions about Medicare to sidestep financial struggles

Medicaid insurance plans standards

According to the outcome of a study performed by Bankers Life and Casualty Company Center for a Secure Retirement, a startling number of retired individuals in the middle-income bracket who are on Medicare either do not understand or they misunderstand the costs and coverage provided by the program, which can lead to unexpected expenses. The research, whose findings were included in the report entitled “Retirement Healthcare for Middle-Income Americans”, examined data regarding 400 pre-Medicare individuals in the baby boomer generation (aged 47 to 64), as well as 400 adults in…

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Choosing the right long-term care policy to cover your needs

The percentage of people who have purchased life insurance has currently reached a figure that is lower than it has been in half a century, as many people debate whether or not the coverage is worth their money when they are already tightening their belts in an economy that continues to struggle in its recovery. Life insurance differs from standard medical insurance in that it provides coverage for individuals who require assistance with their daily living activities. For example, in the case of a broken shoulder or hip, dementia, or…

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Survey shows long-term care services are increasingly expensive

Metlife Mature Market Institute has published a report of the outcomes of its annual long-term care services costs survey, which includes home care, adult day programs, assisted living facilities, and nursing homes. The survey showed that the cost of long-term care services is continuing to climb, and that this year it rose more quickly than the rate of inflation. The only exception to this rule was the cost of home care services, which was the same from last year to this year. The average cost of care in a private…

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At what age should consumers purchase long-term care insurance?

Among individuals younger than the age of 50, it is quite common to believe that long-term care insurance is something that they won’t really need until later on in their lives. According to CFP Rich Arzaga, CEO and founder of San Ramon, California-based Cornerstone Wealth Management, the majority of consumers won’t start to inquire about long-term care insurance until about the age of 45. In fact, “it won’t be on their radar”. He said that once they reach the age of 55 or 60, they will begin to talk about…

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Long-Term health care plan axed by the Department of Health and Human Services

Last week, the Obama administration announced that it will be cancelling the long-term care insurance program that would have been created from the Affordable Care Act. The program, known as Community Living Assistance Services and Supports (CLASS), would have brought aid to those suffering from chronic illness and disability, was determined to be a detriment to the overall economic health of the nation, leading Kathleen Sebelius, secretary of the Department of Health and Human Services, to discontinue the program. Opponents of the Affordable Care Act claim this as a major…

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Residents of California still aren’t buying into long term care insurance

The results of a survey of the residents of California have just been released, to show that while an increasing number are aware that there is a possibility that they will be required to cover certain long term care costs, such as nursing homes, as they get older, only a small percentage are willing to purchase long term care insurance. The survey showed that when compared with the statistics from 17 years ago (when the survey was first conducted), today’s consumers are twice as likely to say that they are…

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