Navigation Links
Study Finds Group Long Term Care Insurance 15-36% More Expensive Than Individual
Date:9/5/2013

Atlanta, Georgia (PRWEB) September 05, 2013

It can be tempting to buy the long term care insurance plan offered at work: it’s convenient and sounds like a sensible idea, especially in midst of all the advertisement. Buyers may want to think twice, though, says long term care insurance marketplace LTC Tree. Examination of the latest policies and premiums shows that group plans typically aren’t the best deal on price or benefits.

Group plans often cause people to receive less benefits for more money, explains LTC Tree founder Darrick Wilkins, and even worse, puts them in an unstable rate class. While they may seem like an easy way to choose a policy, group plans usually aren’t the most worthwhile option.

Compared to group plans, individual long term care insurance policies are a better value in almost every way. The major hole in group plans is an inevitable part of the process: it isn’t that the rates are intentionally high. The flaw in the policies lies in the structure of enrollment.

LTC Tree’s Analytical Department compared five of the major group plans and found:
Couples’ premiums with good health were an average of 36.12% less than group plans.
Individuals’ premiums with good health were an average of 15.49% less than group plans.

Employers typically offer group plans to encourage their employees to plan for retirement and old age, a respectable intent. However, because the insurance provider allows open enrollment of policyholders, they are forced to accept all kinds of health types: smokers, people who are obese, have diabetes, or even cancer. For people in good health, this is bad news.

The open enrollment groups healthy people into the same rate class as the high risk people. While their good health would normally get them a discount with an individual plan, with the group plan, they are stuck in the same rate class as everyone else. Right off the bat, the insurance coverage is more expensive with no more benefits to show for the cost. Most importantly, rates for group plans have historically been increased on existing customers by a higher percentage than individual plans and the rate increases have been more frequent. In an individual policy, buyers can sometimes get discounts of 10 to 20 percent, depending on their health and the company’s criteria. This can make a significant impact in the premium rate and save a lot of money over time. Jumping on the group plan at work may seem easy, but in the long run, could result in way overpaying for coverage and being in a much more unstable rate class.

LTC Tree also analyzed how the adverse selection in long term care insurance open enrollment periods at the workplace has led to consequences later for some large group plans. The unhealthy people opt for the group plans because they can’t qualify for the individual and the healthy opt for the less expensive individual plans. Many have been forced to raise rates, some as high as 200%, in order to compensate for the increasing cost of care for the higher risk group. When these increases occur, a healthy person who was clumped in with these policyholders in the beginning sees their rates raise again, at no fault of their own. Skipping the group plan and choosing an individual plan if the person has relatively good health will place them into a more stable rate class, reducing the risk that their premium rates will increase later.

Background research into a policy can help consumers avoid mistakes like buying a group plan at work – a move that seems extremely savvy at the time, but may actually put you at a disadvantage. Comparing multiple providers is one of the most important parts of buying long term care insurance, says Wilkins. No matter what you do, look into different options before buying the first policy offered to you.

LTC Tree is an Atlanta-based long term care insurance supermarket that helps consumer navigate their long term care options online and encourages a no-pressure process.

Read the full story at http://www.prweb.com/releases/2013/9/prweb11080260.htm.


'/>"/>
Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related medicine news :

1. Study Suggests Vaccine May Help Kids With Brain Cancer
2. Study reveals how cancer drug causes diabetic-like state
3. Coffee Drinking in Pregnancy Wont Lead to Sleepless Baby: Study
4. Lower GI problems plague many with rheumatoid arthritis, Mayo Clinic study finds
5. Veggies Like Broccoli, Cabbage May Help Fight Breast Cancer: Study
6. No Added Cancer Risk From Hip Replacement Materials: Study
7. Reported Decline in U.S. Pneumonia Deaths May Be False: Study
8. Early Study Finds Some Promise for Lung Cancer Vaccine
9. Narcissists Often Ace Job Interviews, Study Finds
10. Sexual objectification of female artists in music videos exists regardless of race, MU study finds
11. Soy may alleviate hot flashes in menopause, large-scale study finds
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/30/2016)... Bay, Jamaica (PRWEB) , ... April 30, 2016 ... ... University, and Duane Boise, President and CEO of EMED, today signed a multifaceted ... Jamaica. , EMED and the Northern Caribbean University Department of Natural and Applied ...
(Date:4/30/2016)... (PRWEB) , ... April 30, 2016 , ... Orlando-based Maximized ... as they go for gold in Rio. Under the care of Maximized Living ... golds! , In an unprecedented showing, Maximized Living is sending the largest contingent of ...
(Date:4/29/2016)... ... 2016 , ... In an article published April 16th on the ... and lip injections, which she underwent in order to feel more at home at ... Festival. The article explains that Ms. Mirmelli’s situation is not unique; many plastic surgeons ...
(Date:4/29/2016)... ... April 29, 2016 , ... ... , announces the addition Onnit brand Alpha BRAIN and New Mood Daily-Stress Formula ... brain and mood optimization products to the store is just one more way ...
(Date:4/29/2016)... California (PRWEB) , ... April 29, 2016 , ... ... at the heart of our nation’s productivity, stability, even security. Most importantly, employees ... their organizations. , Then why are American workers so unhappy? , Just under ...
Breaking Medicine News(10 mins):
(Date:4/27/2016)... SHAWNEE, Kan. , April 27, 2016 /PRNewswire/ ... Martabano , a senior from the University of ... winner of the Bayer Excellence in Communication Award ... veterinary schools, which were awarded a total of ... Over the last four years, Bayer has provided ...
(Date:4/27/2016)... FRANCISCO , April 27, 2016 ... reach over USD 2.14 billion by 2022, according ... Inc.       (Logo: http://photos.prnewswire.com/prnh/20150105/723757 ... technological advancement affecting the efficiency and accuracy delivered ... the persistent demand for novel urinalysis instruments and ...
(Date:4/26/2016)... April 26, 2016 Hill-Rom Holdings, Inc. (NYSE: ... presentation at the Deutsche Bank 41 st Annual Health ... EDT. You are invited to listen to the ... or access it directly at http://edge.media-server.com/m/p/mr4uxgas . A recorded ... conclusion of the live event and accessible at the links ...
Breaking Medicine Technology: