The very first care facility in America was established in Boston, Massachusetts in 1662. Built largely with gray stone, this care facility was called an almshouse, modeled off the long-established tradition found in England and other European countries. When family couldn’t care for their own or an individual didn’t have family, this is where they found refuge. Almshouses, the hospitals of their era, provided shelter and care to the less fortunate, the disabled, widows and the elderly, setting a precedent for the long-term and short-term care facilities we are familiar with today. While the types of patients and conditions have changed tremendously since, the need for extended care and the supplemental health insurance to support it remains pressing.

November is National Long-Term Care (LTC) Awareness Month, and we want to highlight how Long-Term Care and Short-Term Care (STC) differ and what makes ManhattanLife’s OmniFlex™ Short-Term Care a helpful product for all adults. To accomplish this, we knew there was no better person to consult than with Short-Term Care and Senior Solutions expert, Todd Tippets, President of Standard Life and Casualty Insurance Company (Standard Life).

Based in Murray, Utah, Standard Life is part of ManhattanLife’s family of companies and focuses on the senior market. Through his answers, Todd offers deep insight into where Short-Term Care fits within the current supplemental insurance market.

Q: What has been your primary objective at Standard Life? What senior solutions products do you offer?

A: As President of Standard Life, I initially set out to administer and manage what Standard Life marketed prior to being acquired by ManhattanLife in 2020. My current goal is to bring products to market, while identifying and recruiting agents and agency partners to market ManhattanLife products.

Our specialty is marketing senior-focused products as part of the ManhattanLife Lighthouse Series, though all of these products can also be issued to individuals under 65. This includes Accident PAID Enhanced, Cancer and/or Heart & Stroke, Dental, Vision & Hearing Select, Final Expense, Home Health Care, Hospital Indemnity Select and OmniFlex™ Short-Term Care. Sometimes supplemental healthcare options take a backseat. But it’s crucial for everyone to consider products like these.

Q: How important are Senior Solutions products in today’s healthcare market?

A: They are extremely important! If I were to go out and conduct a random survey of those approaching 65 and ask them what they think senior health insurance covers… My guess is that many would believe you receive Medicare at 65 and everything is covered. Unfortunately, that’s not the case. The truth is, no matter what you do once on a Medicare plan, there will invariably be gaps and additional bills that require payment.  

Q: Extended care has become an important topic in the last 10 years. When would you say long-term care and short-term became a more prominent option from supplemental insurance companies?

A: Long-term care insurance plans began to skyrocket in the 1980s, along with significant shifts in the country’s economy and how people handled their retirement. Some of these changes were partly because people were living much longer and they required the care to support that. What policyholders and their children noticed is how expensive long-term care insurance can be. Currently, it can cost up to $1,500 per month for these insurance plans and only 50% of applicants are accepted. These key factors facilitated the rapid rise in affordable and accessible short-term care insurance plans.

Q: What is the difference between short-term medical insurance and short-term care insurance?

A: These two types of insurance are occasionally mistaken for one another, but they are two distinct things. Short-term medical insurance provides temporary coverage to help fill a gap between other, active health plans. This type of insurance may be used as coverage while an individual is in between jobs or is waiting for other coverage to take effect. Additionally, short-term medical insurance is not comprehensive medical coverage and may provide limited benefits. 
 
Short-term care insurance, on the other hand, is a supplemental, indemnity health insurance policy that provides financial benefits to help cover the cost of care when the policyholder loses the ability to take care of themself. For example, this product may be used as additional financial support while a person recovers from an injury or illness at a facility covered by the plan. Short-term care insurance is also not comprehensive medical coverage.

Q: What makes people want to seek out long-term care or short-term care insurance?

A: When people think of long-term care, they think “I will need care to take care of myself and maybe a loved one at some point”. The problem is that no one knows how long that will last and such care can be difficult for family caregivers, both emotionally, physically and financially.

When an individual loses 2 or more of their 6 activities of daily living (ADLs), such as bathing, dressing, feeding, etc. that’s when a long-term or short-term care plan may become necessary, if not essential. A person may want to seek out this kind of coverage as a complement to their other medical coverage and retirement financial plans. It’s important to be preemptive and anticipate what kind of health or bodily changes may take place and already have a supplemental plan in place.

While supplemental long-term care insurance may be viable for some, other people may want to consider the OmniFlex™ Short-Term Care health insurance plan as an alternative.

Q: What is OmniFlex™ Short-Term Care from ManhattanLife? What are some of its benefits?

A: This policy automatically includes coverage for Nursing Homes/Facilities, Assisted Living Facilities and Hospice Care Facilities. The policy was designed to be very affordable, as our average policyholder pays approximately $175 per month with options for coverage available for as little as $20 per month to as much as $500 per month. The product is available for sale to individuals between the ages of 45 and 89. With this plan, you can choose different lengths of coverage; 3, 6, 9 or 12 months. Most people purchase a year. The elimination period is 0, 20, 30 or 90 days; meaning how many days the policyholder pays the facility bill until the plan takes over and begins to pay.

It’s estimated that about 70 percent of all people will require long-term care in their lifetime. Luckily, we accept 90 to 95 percent of all applicants. This is a great extended care solution with many invaluable features.

Q: Does OmniFlex™ Short-Term Care include a pharmacy benefit?

A: Unlike other carriers, our OmniFlex™ Short-Term Care does provide a pharmacy benefit, which can be used whether or not you are receiving facility care benefits from the plan. The policy includes a reimbursement benefit of $10 for each generic or $25 for each brand name prescription drug, up to a policy year maximum of $300.

Q: Tell us more about the Fast-50™ Benefit and how it works with Short-Term Care.

A: The Fast-50™ Benefit is exclusive to OmniFlex™ Short-Term Care. It waives the elimination period and pays a first-day cash benefit equal to 50% of your accumulated Daily Benefit. While it can be used for any type of care at home, Fast-50™, is perfect for times when a spouse, family or friends chip in and help with your care.  

Q: What are some other benefits that OmniFlex™ Short-Term Care provides?

A: Two other primary benefits are Bed Reservation and Restoration of Benefits. The Bed Reservation benefit will reserve your room for up to 10 days at the facility where you are receiving care in the event you are admitted to a hospital. The lifetime maximum is 20 days. For the Restoration of Benefits, after a period of 180 days in which no care is required and no benefit paid out, your Facility Care or Home Health Care Benefit Period restores, until you’ve reached your Lifetime Maximum shown in your policy schedule.

Q: What states is OmniFlex™ Short-Term Care available in?

A: This product is available in several states. Not all plans, products and services are available in each state. Find where OmniFlex™ is available here.

Q: What does the future of senior healthcare look like to you?

A: The future looks promising with even more opportunities to strengthen coverage for seniors that will need it. I think the demand for short-term care coverage will only grow exponentially. Right now, we are still in the last 5 to 10 years of the Baby Boom generation, as people born in 1964 at the end of this generation will be turning 65 up until 2029. For 15 years straight, we have had more than 10,000 people a day turning 65. The market must meet that steady influx of demand. The future consists of more seniors than ever before, and Standard Life be ready to provide the right supplemental health insurance coverage.

We appreciate Todd’s expertise as it draws a detailed picture of what OmniFlex™ Short-Term Care can do for you and your loved ones. His answers remind us that aging is a key part of life and as we grow older, our needs become greater and more varied. Even with exercise and proper nutrition, there may come a time when we require additional help to carry on with our lives. When it comes to retirement, many people tend to focus almost exclusively on the financial aspects of their senior years. However, extended care insurance may prove invaluable. We encourage you to consider including an OmniFlex™ Short-Term Care plan in your healthcare coverage. It may not be like planning a well-deserved stay at a sunny resort, but this plan can add a little peace of mind once you get there.