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Re: Financial Solvency of Provider

Posted by George A Mellendorf on October 02, 2002 at 20:48:08:

In Reply to: Financial Solvency of Provider posted by M Jackson on October 01, 2002 at 15:51:54:

Is there an industry accepted standard to forecast the likelihood of long range financial problems for a LTC provider? I am concerned that the fed govt acceptance of all applicants without regard to health condition may cause their plan to be overwhelmed with claims in 10-20 years.

Boy, you have some great questions and insight. First the only industry standard that I am aware of is Moody’s and Standard and Poor’s and other rating firms that rate bonds and the credit worthiness of the provider. I mention these firms, since most large chronic care providers are publicly traded.

Congressional Budget Office (www.cbo.gov) has published a couple of reports on expected expenditures through the year 2040. Do me an e mail and I will be happy to send you a link.

Your concerns over the Fed’s acceptance of all applicants I feel is unwarranted. First, the Fed’s are not accepting everybody that applies. Next, the Fed’s are promoting personal responsibility for your own long-term care expenses. Shifting a large portion of the chronic care expenses to private insurance has been the Fed’s motive.

Private Pay, whether the money is coming from the resident or private insurance will help the provider, not hurt them financially.

Another site that you may want to visit is the American Health Care Association. This is the association that many chronic care providers belong too for their representation or lobbying on the Hill.

It has been my experience that policy holders will do what they can to avoid a state in a nursing home, even if they have the insurance that will provide a benefit. That is why having a policy that will provide a benefit at home is very useful.

Have a great day: George A. Mellendorf

www.ltcsoluiotns.net

Proud Sponsor of
www.awomensissue.com

1 800 945 1953 ext 111

Follow Ups:

Re: Financial Solvency of Provider : Is there an industry accepted standard to forecast the likelihood of long range financial problems for a LTC provider? I am concerned that the fed govt acceptance of all applicants without regard to health condition may cause their plan to be overwhelmed with claims in 10-20 years. : Boy, you have some great questions and insight. First the only industry standard that I am aware of is Moody’s and Standard and Poor’s and other rating firms that rate bonds and the credit worthiness of the provider. I mention these firms, since most large chronic care providers are publicly traded. : Congressional Budget Office (www.cbo.gov) has published a couple of reports on expected expenditures through the year 2040. Do me an e mail and I will be happy to send you a link. : Your concerns over the Fed’s acceptance of all applicants I feel is unwarranted. First, the Fed’s are not accepting everybody that applies. Next, the Fed’s are promoting personal responsibility for your own long-term care expenses. Shifting a large portion of the chronic care expenses to private insurance has been the Fed’s motive. : Private Pay, whether the money is coming from the resident or private insurance will help the provider, not hurt them financially. : Another site that you may want to visit is the American Health Care Association. This is the association that many chronic care providers belong too for their representation or lobbying on the Hill. : It has been my experience that policy holders will do what they can to avoid a state in a nursing home, even if they have the insurance that will provide a benefit. That is why having a policy that will provide a benefit at home is very useful. : Have a great day: George A. Mellendorf : : www.ltcsoluiotns.net : Proud Sponsor of : www.awomensissue.com : 1 800 945 1953 ext 111

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