Demystifying Long Term Care Insurance

Part 4: How Do I Maintain a Policy?

When opening a policy, your provider may ask you what you want to do with the assignment of benefits (AOB). You have two options: assigning to yourself or the home care provider. There are pros and cons to each:

Assigning to Yourself:

Pros:

  • Transparency with care provider billing
  • More management of lifetime benefit
  • Top two result in more involvement with care

Cons:

  • You pay cash upfront
  • Higher risk exposure
  • More paperwork

Assigning to the Company:

Pros:

  • They get reimbursed, not you
  • Typically less paperwork for billing

Cons:

  • Typically less transparency in billing
  • Less management of lifetime benefit
  • There can be surprise costs if you’re not on top of the benefit (IE the agency bills you beyond your daily reimbursement)

Some care providers have their own policies regarding your AOB. Not all providers will accept AOB. It’s important to speak with and work with your provider to determine the best path forward.

Your policy will likely require you to submit care plans and daily reports for the care you receive. Make sure you work with an agency who can provide this to your insurer. Different policies have different requirements for reimbursement (some require more personal information on caregivers, some less). Make sure you and your agency understand exactly what is required to secure reimbursement from your provider. A good agency will provide guidance during this process.