Insurance premiums have soared for older Americans, but do older Americans actually get to use their insurance? Sometimes no. Elderly Americans are being faced with a huge hurdle when trying to use their long-term care that they saved for; that hurdle is their insurance company. The New York Times this week published a piece on long-term care denial by insurance companies for elderly Americans. The article featured Mary Rose Derks, who scraped together $100 each month for an insurance company that promised to eventually pay for an assisted living home.
After paying the insurance company for 12 years, Mrs. Derks decided it was time to enter a nursing home. But, when she filed a claim with her insurer they offered her a series of excuses as to why she could not use her insurance: she waited too long, the nursing home 5 weeks from her home was not an approved facility despite its license, she was not sick enough despite her 37 daily pills and early-stage dementia. After more than four years, Mrs. Derks is yet to receive a penny from her insurance company and her family has paid roughly $70,000 for her care.
The underlying theme of this article is similar to a previous article we described about automobile insurance companies. The bottom line is that insurance companies profit more when they do not pay claims. They will do anything they can to avoid paying. They know that if they wait long enough, the policyholders will die.
For the full article.