New Jersey Law Provides More Long-Term Care Choices

It's always pleasing to highlight good news! Recently, the New Jersey legislature passed a law that will offer seniors on Medicaid more long-term care options. By 2008, senior citizens living in New Jersey will have a choice in the type of long-term care they receive through Medicaid, under a law by Governor Jon S. Corzine. The law provides "an extraordinary change in direction and policy in a way that makes sure our seniors have a choice," said Corzine at a recent summit on long-term care.

Currently, New Jersey spends $1.68 billion of its Medicaid long-term care budget on nursing home care, compared with $162 million on community-based care like assisted living facilities, home health care and adult day care. That's a whole lot of money going to skilled nursing facilities. The law will now help bridge the gap between money going to nursing homes versus money going to people in the community.

The Application & Underwriting Processes

Underwriting is essentially the acceptance of risk in return for payment. In long-term care insurance, this occurs when an applicant becomes a policyholder, paying the insurance company to accept the risk that may require them to pay out claims on the applicant's behalf. Many people wonder what the application process and the underwriting process for long-term care insurance are about and how it all works. I'll discuss all of that in this article.

Why is underwriting necessary?
The answer to this question has to do with how insurance functions. Think of insurance as a pool of money into which different parties have made deposits. These funds can then be used to pay for the financial losses of individual depositors who have had to make a claim due to unforeseen circumstances. In the case of long-term care, the funds could be used to pay for custodial care for the individual policyholders who develop a need for this type of care.

The primary objective of underwriting is to spread the risk among the pool of policyholders as equitably as possible in a manner that is also profitable for the insurance company. The premiums that each policyholder must pay are directly affected by how much money the insurance carrier expects to have to pay out for claims. This means that the insurance company has to manage the risk that it will have to pay money out of that central pool of funds. The more they have to pay out, the higher the cost of the insurance for everyone. Risk management involves analyzing the potential risks for each applicant (and the associated costs of those risks) in order to set premium rates for policyholders and mitigate the potential financial losses for the insurer.

How are long-term care insurance premiums calculated?
To manage the payout risk, each insurance carrier employs underwriting procedures to make sure that applicants with high-risk medical histories are not allowed into the insurance pool, which would thereby drive up the cost for everyone else. Obviously, while the risk taken by the insurer directly informs the premium rates that policyholders must pay, there are different levels of risk which are reflected the different premium rates. This is essentially how a long-term care insurance company determines the premium rate that you will pay, which I will discuss further in a future article.
What underwriting procedures are employed?

The first step of underwriting that all carriers use is the application form where the applicant lists his or her relevant personal health history and authorizes the insurance company to examine their medical records.
Often the carrier will schedule a phone health interview that lasts for about fifteen to twenty minutes. One of the main purposes of this telephone call is to assure the carrier that the applicant does not have any cognitive problems that would become evident in the way the phone conversation is conducted.
Afterward the carrier will often request a copy of the medical records from the applicant's primary care physician to verify that person's overall health. If the applicant has been treated by a specialist for any serious illness in recent years, a copy of those medical records may be requested as well.
This is where the whole process can sometimes bog down for a few weeks if the doctor's office does not process the record request quickly. However, once the carrier receives the medical records, a final underwriting decision usually follows very quickly.

Insurance Tips For a Trouble Free Holiday

When planning their annual holiday many people think that, they do not need to purchase holiday insurance/travel insurance. But you should always take out adequate holiday insurance cover. Why. Because then you will be fully covered if anything goes wrong.

People who do not bother to take out travel insurance will often say, if I need to see a doctor I can use my EHIC card (european health insurance card) And if the airline lose my suitcases I can claim from the airline at the airport, or if the travel company goes bust, I am covered by ATOL (Air Transport Organisers Licencing scheme)
All of the above are true, but they are not the whole truth.

Your EHIC card will not cover everything, as the level of care varies between each european country,so you might still have to pay for some services. and the card only covers medical treatment that may become necessary on your holiday, because of either illness or accident. and will not include many things that you would expect to get free on the NHS. If you were to be badly injured you would not be covered, to be flown home in an emergency. I am not saying that you should not take your EHIC card,but not everything is covered by your EHIC card. So you still need full holiday insurance too.

Purchasing Shop Insurance For Your Business

As a business owner, purchasing shop insurance is one of the most important decisions you will make. Protecting your business from potential loss and liability can be costly, but appropriate coverage is a worthwhile investment.

Businesses are vulnerable to damage from natural disasters, theft, and lawsuits from both employees and customers. An important step in determining what type of coverage your business needs is to understand what coverage is available.

In cases of natural disasters such as fire or flood, all assets and valuables held by the company can be insured by shop insurance to ensure maximum coverage if the worst should happen. Customer and employee theft can also be covered, and cash that is kept on site can be insured as well.
All businesses that hire employees must carry coverage that protects them from claims that arise from accidents or illnesses that occur during the course of employment. If you plan on hiring help, this type of insurance is required by law.

Another area of potential liability is claims that customers make in the event of injuries that occur on the premises. Slip and fall injuries, cuts from glass or metal shelves, and injuries that result from tripping over boxes left in the aisles are all examples of possible claims. Your company must be adequately covered in the event of these types of losses.

Premiums for shop insurance are based on the amount and types of coverage required for each business. Shopping for the best rates will help keep the cost of protecting your business to a minimum.
Insurance brokers who have experience in your industry can help determine what coverage is best for the unique needs and risks of your business. Many insurance companies offer multiple policy discounts. Compare the policy details and rates for several different companies, paying close attention to what is covered and what the policy limits and exclusions are.

Are you a member of a local business group or trade association? If not, you may want to consider joining one. Often one of the benefits of belonging to such organizations as the Chamber of Commerce is that insurance policies can be purchased at group rates. Group rates can be significantly less than the cost of purchasing individual policies.

Trade journals or business publications specific to your industry can be a great resource for determining what coverage your business may require. Networking with the owners of similar businesses in your area may also be beneficial.

A little research into trends in your industry may prove to be valuable when making the decision about shop insurance for your business. If there have been recent lawsuits against businesses that are comparable to yours, review the settlements. What policy limits would be sufficient to cover the loss if your business faced a similar lawsuit