Wellabe (Formally Medico) Review

Medico, now known as Wellabe, offers limited duration/cash indemnity plans, not traditional Long-Term Care Insurance. However, these types of policies can be very valuable as a solution for extended care needs. 

Merger of Wellabe and Medico

In 2023, Wellabe and Medico merged to form a single company. The merger was motivated by a desire to create a stronger and more competitive company that could better serve the needs of its customers.

The new Wellabe company is now one of the largest providers of preneed funeral, final expense life insurance, and health insurance in the United States. The company is committed to providing its customers with high-quality coverage, excellent customer service, and affordable prices.

Insurance companies like Aetna and Guarantee Trust Life are the leaders in the limited duration/cash indemnity product category with relaxed underwriting criteria. Wellabe is now pushing to be part of this growing product segment.

History of Wellabe

Wellabe is a relatively new company, having been founded in 2023 through the rebranding of six insurance company subsidiaries of American Enterprise Group, Inc. These subsidiaries were American Republic Corp Insurance Company, American Republic Insurance Company, Great Western Insurance Company, Medico Corp Life Insurance Company, Medico Insurance Company, and Medico Life and Health Insurance Company.

Despite its recent rebranding, Wellabe has a long history dating back to 1929, when American Republic Insurance Company was founded. From the beginning, American Republic was dedicated to providing personal insurance services at an affordable price. Through sound fiscal responsibility, the young company survived the Great Depression, which came just six months later. By 1945, American Republic had expanded beyond its Iowa borders to do business in a second state, Minnesota, rapidly followed by more states.

Medico Features and Benefits:

• Comprehensive – includes benefits for all areas of care.
• Daily Benefits up to $300 a day for in-home care.
• Facility benefits up to $500 per day for up to 360 additional days of care. 
• Adult Day Care benefit pays $50 per visit for up to 20 visits to an adult day care setting.
• Household Improvement Rider provides $500 for home modifications that help you remain at home, such as installing ramps, widening doorways or hallways, modifying a bathroom, and more.
• Care Coordination benefit provides you $500 for home modifications that help you remain at home, such as installing ramps, widening doorways or hallways, modifying a bathroom, and more.
• The Inflation Benefit increases your benefits, not the premium, and is 5% simply available.
• Benefit Periods from 120 days to 360 days.
• Elimination Periods of 0, 15, and 30 days.
• Bed Reservation Benefit for 21 days
• Return of Premium Rider allows a portion of the premium to be returned if the policy is terminated.

Underwriting

While the underwriting for Wellabe is not as conservative compared to traditional Long-Term Care Insurance, the product is more conservative than its competitors. Eligibility ages are from 40 to 89.

Processing Claims

If you own a Wellabe/Medico policy (including any of the company's older Long-Term Care Insurance policies) and seek help submitting a claim, LTC NEWS offers free - no-obligation assistance - including help finding quality caregivers and facilities. Since most agents have little or no experience in this area, this assistance can be helpful for the entire family - Filing a Long-Term Care Insurance Claim.

Partnership

Since Aetna policies are not traditional long-term care policies, they are not certified as a partnership policy under state and federal law. Nor do they meet the guidelines under Section 7702(b) of federal code and will generally not qualify the policyholder to opt-out of any state that has instituted the LTC Tax.

Find State-Specific Information

Each state has a state-specific page that includes the current and future cost of long-term care services, available tax incentives, information on care providers, and other important information - LTC NEWS Cost of Care Calculator.

Federal Regulation and Consumer Protections

Wellabe/Medico and other limited duration/cash indemnity plans are not Long-Term Care Insurance; therefore, they do not contain the same level of regulations. All Long-Term Care Insurance contracts are regulated under IRS regulations §7702B(b). Any insurance contract that meets the guidelines set by the Internal Revenue Service is considered long-term care. 

All insurance products that meet these federal guidelines contain consumer protections, regulated benefit triggers, and tax advantages.

However, there are state and federal regulations in place that insurance companies must meet, and Wellabe/Medico and other products in this product category still have significant regulations.

Shopping for Long-Term Care Insurance?

When shopping for Long-Term Care Insurance coverage, remember that numerous state and federal regulations impact Long-Term Care Insurance. Each state's department of insurance regulates products and premiums. Because of regulation, an insurance agent, agency, or financial advisor cannot give a consumer a special discount that is not available otherwise. 

Limited duration/cash indemnity plans can be helpful in some situations. 

Speak with a qualified specialist and use all the tools and resources available on LTC NEWS to help you in your research - Resources for Long-Term Care Planning.

There are more similarities than differences when it comes to features and benefits. However, options and benefits vary from company to company, and premiums can vary between companies by over 100% when comparing equal benefits.

Other Options to Consider

Since Wellabe/Medico does not offer traditional Long-Term Care Insurance, several top-rated insurance companies are available that offer both traditional and partnership-certified plans. The top insurance companies for traditional Long-Term Care Insurance include: 

• Mutual of Omaha
• Thrivent Financial
• National Guardian Life
• New York Life
• Northwestern Mutual

The top insurance companies for hybrid plans that combine life insurance or an annuity with a qualified rider (those meeting federal guidelines) for long-term health care include:

• Nationwide
• One America
• Brighthouse
• Lincoln Financial
• Securian Financial 

Several insurance companies offer limited-duration/cash indemnity policies similar to Medico. A Long-Term Care specialist can assist you in finding the proper coverage.

Comparing Products

Since your health is a primary consideration in determining your eligibility for coverage, it is always best to start planning before retirement when health is usually better. An experienced Long-Term Care Insurance specialist will ask several questions about your health to provide accurate quotes and professional recommendations.

Please note: Since every company has different underwriting rules, you could be eligible for coverage with one company and not another.

When comparing Long-Term Care Insurance, you should understand the differences between Mass Mutual and other companies. 

There are variations between the policy language and benefits between the many companies that offer Long-Term Care Insurance; however, the primary features and benefit choices are comparable from company to company. 

Premiums and underwriting criteria vary dramatically between insurance companies. 

State variations may apply.