Medico announces agreement with AARP
When AARP Short-Term Care Insurance from Medico launches, AARP members will have two options for how they purchase the product - directly through a dedicated program website or through a third-party call center. Details on the specific timeframe for a broader release, including independent agent distribution, will be shared in the future.
New sales of the current Medico Short-Term Recovery Care product will be discontinued prior to the launch of the new product. Existing policyholders will not be impacted.
This announcement will be sent to agents tomorrow. Look for additional information to be shared in future email communication.
Request information on Medico Insurance plans here.
Medicare Blog | Medicare News | Medicare Information
AARP will be offering short-term care insurance (STCI) to many of its 38 million members.
The group has picked Medico Insurance Company, a unit of American Enterprise Group Inc., to be the STCI provider.
Medico will provide a product designed exclusively for AARP members, AARP and American Enterprise announced last week.
Medico will try to have the product on the shelves in several states by early 2020
AARP is a Washington-based group that serves people ages 50 and older.
Medico is a Des Moines, Iowa-based issuer of life and health products aimed at older consumers. Its parent, American Enterprise, also controls American Republic Insurance Company and Great Western Insurance Company.
Medico now sells a short-term recovery care insurance product to consumers ages 18 to 79. That policy can pay for recovery care for up to 12 months.
Like the existing Medico recovery care product, the new AARP Medico STCI product will help purchasers pay for short-term use of home health care, adult daycare, hospice care, assisted living facility care and nursing home care, according to AARP and American Enterprise.
AARP and American Enterprise have not talked about what the new STCI prices or underwriting process will be like.
An agent field guide on the web shows the current individual product uses medical underwriting. Applicants can be declined if they have conditions such as a history of stroke, kidney failure, lupus, or an inability to dress themselves.
An applicant who was 5 feet 6 inches tall would have to weigh somewhere between 106 pounds and 254 pounds to qualify for coverage.
Some of our main benefits may include:
Optional benefits* are available at an additional cost and may include:
Learn more about Medico's Hospital Indemnity Insurance:
Dental Insurance Opportunity
Whenever you talk to your clients about their health insurance plans, be sure to include a discussion about dental insurance. Many seniors don't know that Medicare doesn't cover most dental care, dental procedures, or supplies, like cleanings, fillings, tooth extractions, dentures, dental plates, or other dental devices. That means they may need to enroll in dental coverage to avoid the problems that can arise from neglected dental health, including gum infections, dental decay, and chronic pain.
More and more people are aging into the senior market every day, and most people lose their dental benefits when they retire. In fact, according to a National Association of Dental Plans consumer survey, almost half of all seniors have no dental coverage. These consumers represent a fast-growing segment of the population, and reaching them could be a great boom to your sales.
Consider this: According to the U.S. Department of Health and Human Services, for every adult without medical insurance, there are three without dental insurance. That’s a major opportunity.
So, what do seniors do when it comes down to taking care of their teeth? They either pay out of pocket (75 percent do this), or they don’t go. If they are lucky, they are one of the few seniors who have paid for a dental plan on their own. You can help fill a major hole in American health care needs. That means that the market for dental plans is gigantic. Scores of Americans (more than 100 million people) need a product you can sell them.
As a broker, when you’re discussing your senior customers’ coverage needs, you have the opportunity to help them understand the importance of maintaining their oral health.
You can talk with your senior clients about supplemental dental insurance and explain how it could help them afford access to professional dental care that their Medicare plan may not cover. Selling dental insurance to seniors is easier when you can show your customers that they don’t have to make sacrifices to their health for the sake of their finances.
PSM offers dental plans designed with your client's needs and budget in mind. If you are not selling dental plans currently, now is a great time to incorporate this in-demand product in your portfolio. Contact us today and we would be happy to assist.
Medico Hospital Indemnity Plans
It's not uncommon for hospitals to admit patients to an observation unit when physicians can't determine whether admission is necessary. In the majority of cases, a patient will stay in observation for between 24 and 48 hours. The following is an example of how this might work.
Susan*, a Minnesota resident, went to the emergency room with abdominal pain. The doctor who examined her decided not to admit her as an inpatient and kept her in the observation unit instead, where she was monitored by the hospital's nursing staff. After 48 hours, she was discharged to go home.
If Susan has a Hospital Indemnity plan, the observation unit benefit will pay benefits even though Susan was discharged rather than being admitted to the hospital. The observation unit benefit of this policy pays 100% of the hospital confinement indemnity benefit amount for up to six days each calendar year. If Susan's hospital confinement benefit amount is $250 per day, her policy will pay the same amount for her observation unit services, or $500. These benefits are, of course, in addition to any benefit payments she receives from major medical insurance, Medicare or a Medicare Supplement plan.
If Susan has a similar incident later this year, she will still have four days of observation unit benefits available to her.
Talk to your clients today about Medico's Hospital Indemnity plan. Marketing materials available on MIC, our agent website, include brochures, a product flyer, a postcard, and a customer presentation.
“What’s the biggest risk to your financial security in retirement?” Whenever I ask that question, what I hear most often is that people are concerned about whether or not their money will last. Many pre-retirees don’t budget for unexpected medical expenses that can pose a threat to their retirement income plan. The Employee Benefit Research Institute estimates that a couple, both 65, retiring today with median prescription drug expenses needs $151,000 (in today’s dollars) to have a 50 percent chance of meeting their health care costs in retirement, not including long-term care costs. A couple with $255,000 in savings would have a 90 percent chance of covering those costs.
Why the Disconnect?
In reality, Medicare doesn’t cover many of the health care expenses older Americans use most. I’m talking about vision and dental care, hearing aids and eyeglasses. And Medicare Part D plans vary widely when it comes to prescription coverage. I remember feeling sticker shock when I helped my mom and stepdad pay their monthly pharmacy bill. Millions of Americans take blood pressure, diabetes, arthritis and other commonly prescribed medications to stay healthy and out of the hospital. These aren’t health care costs you can dial back on to save money.