Private health insurance offers
policies limited in scope for specific insurance needs.
These policies are not substitutes for Medigap insurance or comprehensive
health coverage. Benefits under these
policies are not designed to fill gaps in your Medicare coverage.
What is hospital indemnity
insurance?
Hospital indemnity
insurance pays a fixed cash amount for each day you are in the hospital up to a certain
number of days. Some policies may have added benefits such as surgical benefits or skilled
nursing home confinement benefits. Some policies have a maximum number of days or a
maximum payment amount.
What is specified disease
insurance?
Specified disease
insurance, which is only available in some states, pays benefits for only one disease,
such as cancer, or for a group of specified diseases. The value of this coverage depends
on the chance you will get the specific disease or diseases covered. Benefits are usually
limited to a fixed amount for each type of treatment. Remember, Medicare and any Medigap
policy you have will very likely cover costs from any specified diseases you may have
What is long-term care
insurance?
Long-term care insurance
is one way you may pay for long-term care. This type of insurance will pay for
some or all of your
long-term care. Long-term care insurance is a relatively new type of insurance. It was
introduced in the 1980s as nursing home insurance. It has changed a lot and now often
covers much more than nursing home care. If you are shopping for long-term care insurance,
find out which types of long-term care services the different policies cover. For more
information about long-term care insurance, get a copy of A Shopper’s Guide to
Long-Term Care Insurance from either your State Insurance Department or the National
Association of Insurance Commissioners, 120 W. 12th Street, Suite 1100, Kansas City, MO
64105-1925. You may also get a copy of Your Guide to Choosing a Nursing Home from the
Health Care Financing
Administration by calling 1-800- MEDICARE
(1-800-633-4227, TTY/TDD: 1877- 486-2048 for the hearing and speech
impaired).
Who sells long-term care
insurance?
Private insurance
companies sell long-term care insurance policies. You can buy them from an insurance agent
or through the mail. Or, you can buy a group policy through an employer or through
membership in an association. You can also get long-term care benefits through a life
insurance policy. Insurance companies must be licensed in your state to sell long-term
care insurance. Be certain that you are dealing with a company that you know. If you
decide to buy long-term care insurance, be sure that the company and the agent, if one is
involved, is licensed in your state. If you are not sure, call your State Insurance
Department.
*This
information was taken from the Health Care Financing Administration’s, “2000 Guide to Health Insurance for
People with Medicare”. This is an Adobe Acrobat file.This is an Adobe Acrobat file.
