What is Short-Term Recovery Care Insurance?
Short-Term Recovery Care insurance, also known as convalescent care insurance or short-term nursing facility insurance, helps manage the cost of temporary stays in a nursing facility. For some, Short-term Recovery Care can be an affordable alternative to long-term care insurance.
Not to be confused with long-term care insurance, recovery care pays benefits to help manage the expense of stays of less than one year in a covered facility such as a nursing or assisted living facility. Anyone who has had an incapacitating illness like a heart attack or a serious injury that renders them temporarily unable to care for themselves can use short-term recovery care insurance.
Why do I need Short-Term Recovery Care Insurance?
Part of smart retirement planning is making sure that precautions have been taken to guard against the possibility of an unexpected injury or prolonged illness wiping out your hard-earned savings. While Medicare is available for people over the age of 65, it offers little in the way of coverage for facility based care. Should you require a stay in a skilled nursing facility, Medicare Part A requires at least a three-day hospital confinement before they will cover the first 20 days of nursing facility care and only covers skilled care not intermediate or custodial. After 20 days, Medicare requires you to cover the per day coinsurance out of your own pocket for the next 80 days and then coverage stops for that confinement. Each year the coinsurance amount goes up.
Also, coverage for short-term recovery tends to fall through the cracks of most managed care and long-term care insurance plans, because 42.8% of all patients admitted to nursing care facilities stay for less than a year.1
I own Long-Term Care Insurance. How can Short-Term Recovery Care Insurance help me?
If you already own a long-term care plan, Short-Term Recovery Care insurance can also be used in conjunction with a long-term care plan to save you money. Most long-term care plans offer several different elimination period options, with longer elimination period options usually cutting the cost of premiums by a significant amount. You can then use a Short-Term Recovery Care policy to provide coverage during that gap, providing protection from out-of-pocket expenses, while saving you money on your long-term care plan.
Short-Term Recovery Care Features and Benefits
Policy Form Series 2090 may not be available in all states. The policy has exclusions and limitations. Benefits may vary by state.
This product is not available in AK, AL, CA, CT, DC, FL, HI, KS, MA, ME, MN, ND, NH, NJ, NY, SD, TX, VT, WA
1Slome, Jesse. Telephone INTERVIEW. November 2007.