Med America Vs Genworth

[csalter]

The medamerica policy will be 30% to 50% more premium than the Genworth policy. If you're being show premiums that are close to each other, then you're not being shown an apples to apples comparison.


... and your genworth policy pays home care on a monthly basis (not daily). that's required in every california partnership policy.

Yes. There was a jump in the overall premium. I remember the annual numbers better than the monthly and 10 pay numbers. The difference in the premiums was more because of me than my wife. Her annual premium went up about $500 with Med America buy mine saw about a $1600 jump. I can't remember the 10 pay amount, but with all of the increases I have been seeing, I think I would try and do it with them too. What made me initially say it wasn't too big a difference was because the monthly difference was only about $120. I did see that as a lot.

So there was about a 30% jump for her but about a 90% jump for me. It's about a 65% jump overall. I guess I really did not notice it looking at those monthly premiums. A hundred dollars did not seem like that much, but it really is.

I still like the policy if I should have to use it.
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csalter,

MedAmerica's parent company is Excellus Health Plans, which owns a number of health care entities, including most of the BC & BS throughout the country. Excellus is a $6 billion company and has a S&P rating of 'A-' (Strong) along with an AMBest rating of B++ (Good)

What you look at in determining financial stability are the carrier's Reserves. Obvioulsy, each state's DOI feels that MedAmerica's reserves are adequate enough to handle future claims.

Now,
Not to say "I told you so" BUT..................
If I recall, your first few posts on this forum last year was about getting forum advice on a LTC policy. After much discussion based on your income, assets and concerns, you were advised of 2 things:
1) A Partnership policy was not appropriate,
and
2) Although you sat with a Genworth agent, you were advised to sit with an independent agent representing most carriers in CA and get an unbiased opinion.

Correct me if I'm wrong, but at the end of the day, you did not listen to our advice and you went ahead and purchased a CA Partnership policy with Genworth.

After receiving your policy, you posted a number of questions about the policy's benefits & the company's financial stability.
I for one, got on your case for not doing your due dilligence prior to purchasing a policy, rather than after purchase.

So..............
Now fast-forward months later and you find out about a policy offered by MedAmerica. If you would have listened to forum member's advice, with an independent agent you would have looked at all carriers in CA, before your purchase, including MedAmerica.

BTW, I recall you paying your premiums on a 10-pay. MedAmerica also offers a 10-pay in CA.

Also, depending on your age, take a look at MedAmerica's 5% cmp, 2x. It's usually substantially less than a 5% cmp, unlimited.

If you're 65 or above, with a 2x cmp., your monthly benefit will double in 15 years and then remain level. The annual premium savings will more than make up what you'd possibly lose if you didn't go on claim until your early to mid 80's.

You may be a year older since your original purchase, but if your health still qualifies you for a preferred rate, now is the time to make the switch.

One thing that I had the agent do was to show me the cost of premium for a monthly benefit of $15000 with no compound interest. The premium lower than $300. I was shocked by that. However, by the time I reached age 67 the 5% compounded would have caught it. The 70's if all goes well may be when I start needing benefits and if that would happen I could be under the inflation amount.

It's very interesting stuff with these policies.

 

[Arthur Rudnick]

csalter,
Do you want to share with us your purchased Genworth benefits, including benefit amount, benefit period, elimination period and any options purchased? Also, at what ages were you when you purchased that policy and what are your present ages now and did you both qualify at a preferred health rate?

Your MedAmerica premium is 90% higher than Genworth? Can't be, something is missing from the equation. Do you have the proposal from the MedAmerica? Let us know what those benefits are as well.
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previously posted by csalter

One thing that I had the agent do was to show me the cost of premium for a monthly benefit of $15000 with no compound interest. The premium lower than $300. I was shocked by that. However, by the time I reached age 67 the 5% compounded would have caught it. The 70's if all goes well may be when I start needing benefits and if that would happen I could be under the inflation amount.
It's very interesting stuff with these policies.

There are many, many moving parts with a LTC policy. Very often (depending upon age) someone will be better off to purchase a higher benefit without an inflation rider. At 38 & 52, if I had to guess (too lazy to run a quote) probably 75% of the cost of your premium can be attributed to a 5% compound inflation rider. Take that out and you have all sorts of room ($) to manuever.

At your ages a 5% compound inflation rider (lifetime) is the way to go.

 

[csalter]

csalter,
Do you want to share with us your purchased Genworth benefits, including benefit amount, benefit period, elimination period and any options purchased? Also, at what ages were you when you purchased that policy and what are your present ages now and did you both qualify at a preferred health rate?

Your MedAmerica premium is 90% higher than Genworth? Can't be, something is missing from the equation. Do you have the proposal from the MedAmerica? Let us know what those benefits are as well.

I was 51 and she was 37. 90 day elimination, $200/day, over 4 years, survivorship included, preferred rate, 5% compounded, High Residential limit rider

The MedAmerica had the same variables. The agent took all of the information directly from my Genworth policy at my current age. He quoted me a 3 year and a 4 year for Med America because he knew that my 4 year would be more expensive with MedAmerica.

However, upon reviewing the quote he gave me. I just realized he made an error. The reason mine is so much more is because instead of 4 years, he put 5 years for the benefit period. I guess that is why the difference is so large.

 

[Arthur Rudnick]

However, upon reviewing the quote he gave me. I just realized he made an error.
The reason mine is so much more is because instead of 4 years, he put 5 years for the benefit period. I guess that is why the difference is so large.

Well, I believe way back in the 2nd or 3rd post Mr_Ed told you to be sure you were comparing apples-to-apples.......

 

[csalter]

Well, I believe way back in the 2nd or 3rd post Mr_Ed told you to be sure you were comparing apples-to-apples.......

Yes, you are correct. He stuck a carrot in there. :-)

I just called him to ask him to correct that error he made. He wrote 4 years on the paper he scanned to me, but he entered 5 years for the benefit period.

 

[CALTCAgent]

First, they give you a cash benefit for the month. That is very appealing. You can have anyone you want provide care for you. Secondly, they use calendar days as opposed to service days to determine your elimination period, so your elimination period would go by faster. Thirdly and importantly, you can use this benefit for anyone who is giving you care including family or friends. That gives one great flexibility.

Do any of you have thoughts on them?

My thoughts are, is paying 40% extra premium worth having the ability to have anyone you want to provide care?

 

[csalter]

My thoughts are, is paying 40% extra premium worth having the ability to have anyone you want to provide care?

I don't think they have 10 pay either, could be wrong though.

That is the question. Unfortunately, we cannot tell the future. Calendar vs service days could make a difference in the future. $200 per day vs $6000 per month without a lot of additional paperwork and ensuring everyone meets specifiec critieria could make a big difference.

My niece took care of my dad for two years as he battled cancer. She would not have been eligible for any assistance through Genworth, but would have been eligible under MedAmerica. I could see some benefits there with Med America.

MedAmerica does have 10 pay. The main difference to me is that MedAmerica has total flexibility.

 

[Arthur Rudnick]

previously posted by csalter

The main difference to me is that MedAmerica has total flexibility.

There's a reason their policy is called Simplicity...........

A few things about their policy:
1) They pay you "CASH". Each month you get your full monthly benefit (it's an indemnity policy) to do with as you want. Employ an informal, unlicensed caregiver, including a spouse, a friend a family member or the paperboy.
2) There is no requirement to submit bills or receipts in order to be paid.
3) They will pay your full benefit anywhere in the world, with no restrictions.
4) They pay on the 1st of the month, BEFORE services are received.

The only downside that I see is that although they use calendar days for their elimination period, they do not offer a zero-day elimination period for home care.

And of course, all things being equal, they are usually more expensive than other carriers.

 

[ltcadviser]

I cant recall if you included the Genworth 0 day wait HC EP? if so, Calendar Days vs. Service Days does not make any difference since if you are in a facility it just doesnt
matter.

 

[csalter]

I had a 90 elimination period. Here's the apples to apples comparison.

4 year, $200/day, 90 Elimantion Period, High Residential limit rider (Genworth), survivorship riders and 5% compound interest.

Genworth annual bought at 51 and wife 37- $1868 and $1501.

MedAmerica $3062 and $2010.

Thoughts? Do you think it's worth the extra cash? If I really end up needing it, I think the MedAmerica policy would be so much more flexible but at such a cost. I will try to see how often they have raised rates here in CA.