MedAmerica STC

[yankee466]

@Herman, did you ever get some business cards . . .

Bob - Most of my clients can now find me if they try hard enough, Thanks for asking. Vista Print keeps me going. (Inside joke for the rest of you on this board)
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It's a 5-page app and the underwriting is page 1.
2 outcomes: Issued or Declined
FlexCare is fully underwriten just like MedAmerica's Simplicity product. This STC policy is far from an "easy issue".

app

I looks like it could be easy underwriting to me. There are no medical question on the ap other than the knock out questions. It does not ask for doctors or Rx. Maybe it is a phone interview like MoneyGuard?
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Actually.......I would suggest you compare Standard Life's product "Recovery care"...assuming it still exists. I don't recall it covered home health care, but the concept was the same. also a health and life product.

The MedAmerica FlexCare plan is minimum of 1 year benefit period of traditional LTCi. So, Transitions/Recovery Care is a good fit for someone looking at a much shorter term plan of as little as 100 days. Could be a good add on to a MedSup or MAPD to cover any co-pays for NH/rehab.

 

[Arthur Rudnick]

"It looks like it could be easy underwriting to me"

Not sure why you would say that. Compared to LTCi, it's VERY restrictive.

"Transitions/Recovery Care is a good fit for someone looking at a much shorter term plan of as little as 100 days. Could be a good add on to a MedSup or MAPD to cover any co-pays for NH/rehab".

Personally, I don't know who MedAmerica's target market is for this product. 100 days? Aren't the first 100 days pretty much covered on someone's health insurance or Medicare & Sup?

Some states will consider this as Accident & Health insurance and others as LTCi. I always though a LTC policy had to have a minimum of 2 years coverage.

It could never qualify for a Partnership policy and it would never do for a policyholder what a LTC policy would do. And, in the states that considers this as LTCi, I'm wondering if it's Tax Qualified?

I'm not even certain if this product will be approved by every state they're filing in, but who knows?

It sounds like something that AFLAC would be selling.

No, it does not ask for doctors or Rx, however, there is a HIPAA form and today, all carriers are looking at the Rx database.

 

[somarco]

Any reason for, or against, using this as a "fill in" or "bridge" to get to a true LTCi policy?

I am thinking about the way STD bridges you over to LTD.

 

[yankee466]

Any reason for, or against, using this as a "fill in" or "bridge" to get to a true LTCi policy?

I am thinking about the way STD bridges you over to LTD.

Using it as a bridge is a good concept. Most LTC plans have a 90 day wait. Medicare will not really cover HHC or any care that is not considered "skilled" , Then you have people with varying medicare supplements and/or MAPD that may leave them with co-pays inside the first 100 days that this is going to help with. Of course most people to not have LTC anyway......so I would market it as a low cost, just in case product to the people who maybe can't afford LTC. If they can afford a LTC plan, the theory is they can pay for the first 90 days of whatever life dishes out.

I did not pick up from the material whether it is reimbursement, indemnity, or cash. There was one reference to "if you use less then the daily amount, the plan can last longer"....so it implies reimbursement.

Recovery Care was rather low cost....so I assume Transitions will be too. It still looks like simplified underwriting.....but time will tell. If it is simplified UW, I would likely use it as an "it's all you can get.....so think about it".

I am sure we will all be enlightened in the next week or so when it actually rolls out. I am waiting on a return call from my MedAmerica contact as we speak.

 

[somarco]

Thanks Herman. Look forward to additional insight from you and others.

Does your MedAmerica contact have a business card . . .?

 

[Arthur Rudnick]

"Using it as a bridge is a good concept. Most LTC plans have a 90 day wait"

I'm not sure I get it. This Plan has an elimination period of 20, 60 or 90 days. Most LTC policies today are purchased with a 90-day elimination period. Is someone going to purchase a separate policy just to cover them for less than a year (360 days coverage is the max) just to have coverage during a LTC policy's elimination period? It may be less expensive to have a 30-day elimination period on the LTC policy than buy this.

And, I thought the concept was for a policyholder to co-insure the cost of care? If someone is looking for a LTC policy to cover 100% of every possible expense (and they can afford to do so) let them buy a lifetime benefit @ $400/day, 20-day EP & 5% Cmp.

Herman, it's a reimbursement policy.

 

[yankee466]

Part of the theory is that the plan kicks in without having to have a "condition expected to last longer than 90 days". Its a short term recovery plan....or a long term care plan that doesn't really last that long.

I doubt many true LTC candidates will buy it. Its more of a supplement to Medicare coverage and/or some maybe affordable coverage if LTC is just not affordable.....and then you have to hope you die within the first year.

 

[somarco]

then you have to hope you die within the first year.

You say that like it is a bad thing . . .

 

[Arthur Rudnick]

"Part of the theory is that the plan kicks in without having to have a "condition expected to last longer than 90 days".

That being the case, for those states that classify this as LTCi, it will be a non-TQ policy.

 

[CALTCAgent]

I notice about 8 conditions on the Transitions Short Term LTC application that are declines that might not be declines with "Traditional LTC".