March 24, 2012

Long Term Care (LTC) Policyholders Are Devising Custom Care Arrangements, But Will LTC Insurers Join the Trend

by Kantor & Kantor LLP

Some aging retirees are creating custom living arrangements providing the full range of services typically available at assisted living facilities but also combining travel and adventure at the same time, reports the Wall Street Journal. See, “The New Retirement Resorts,” http://online.wsj.com/article/SB10001424052702303717304577277341462803340.html.

Such arrangements include full-time spas, serial cruises, co-housing, bungalows in caregivers’ backyards, and even fully staffed houses in foreign countries – all for less than what they would pay for the same level of care at traditional facilities. Much of the impetus for these novel care options comes from adult children reluctant to confine their still-active and alert parents to one-room domiciles. Instead, they are researching and planning alternatives that provide flexibility, daily care, family interaction and fun.

Of course, this begs the question: How will long-term care insurance providers respond to claims that include these creative care arrangements?

According to Rona Loshak, a New York long-term care insurance broker, as long as the policyholder needs help with at least two activities of daily living – dressing, bathing, feeding, etc. – LTC policies should cover the expense, particularly, she told the WSJ, if the policy has “alternative plans of care” language.

We’ll believe that when we see it. In the meantime, if you are having difficulties getting your LTC insurer to cover your long-term care expenses – whether in a traditional facility, at home, or for a custom care arrangement, give us a call at (800) 446-7529. We can help.