Medico Short-Term Care Insurance Review

Medico 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. 

Medico has an endorsement with the AARP and can only be purchased through an agent that offers AARP benefits. Medico pays AARP a marketing fee for the endorsement. Insurance companies like Aetna and Guarantee Trust Life are the leaders in the limited duration/cash indemnity product category with relaxed underwriting criteria. 

Medico Features and Benefits:

• Comprehensive – includes benefits for all areas of care

• Daily Benefits range from $100 to $300 a day

• Inflation Benefit of 5% Simple available

• Benefit Periods from 120 days to 360 days

• Elimination Periods of 0, 15, and 30 days

• Bed Reservation Benefit

• Hospice

Underwriting

While the underwriting for Medico is not as conservative compared to traditional Long-Term Care Insurance, the product is more conservative than its competitors. 

Processing Claims

If you own a 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 do not certify 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

Medico and other limited duration/cash indemnity plans are not Long-Term Care Insurance, therefor 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.

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 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.