Long-term care insurance now available for people with diabetes

Nearly 24 million Americans age 20 and older have diabetes. For many, the process of obtaining insurance protection, especially life insurance or long-term care insurance (LTCi), can be a difficult journey. Often time-consuming efforts lead to decreased coverage.

Historically, many insurance companies have classified anyone with type 1 diabetes as an automatic decline, without considering each case individually. Type 2 diabetes is usually treated differently.

The reason for the automatic declines arises from the fact that type 1 diabetes is classified as a chronic condition that has traditionally been associated with more care as a person ages and a shorter life expectancy.

Long-term care insurance is especially difficult to obtain because it covers much of the necessary care that standard medical insurance doesn’t.

Some 8 million Americans now have some form of long-term care insurance and about 350,000 new policies are placed annually according to the 2010 Long-Term Care Insurance Sourcebook. LTCi protection pays for home care, life assisted living and care in a skilled nursing facility or Alzheimer’s center. As many families have discovered, long-term care is expensive, and long-term care coverage has saved many families who would not have had the resources to support a sick loved one without it.

There is good news for the millions of Americans who have some form of diabetes. As medications, blood glucose control, and life expectancy have improved, so have the chances of getting both life insurance and LTC insurance. Insurance companies are willing to consider people with type 1 diabetes, and many have expanded underwriting guidelines for those with the disease under control.

According to Scott Olson, president of LTCShop.com, some companies won’t consider anyone with type 1 diabetes. Others treat type 1 the same way they treat type 2. And, some long-term care insurers will be stricter about the type 1 health insurer than with type 2.

Those who treat type 1 diabetes as type 2 diabetes generally look for the following: How much insulin the applicant takes. Most insurance companies look for usage of less than 50 units per day, but it may be higher in some cases.

Insurers will also look at the applicant’s height and weight. The higher the weight, the less likely the applicant will be approved. A1C is very important. Most LTC insurers want the a1c to be below 8.0. But, some will accept higher numbers.

Finally, insurers will look for what are called comorbid conditions, especially heart disease. If someone has diabetes and heart disease, it can be very difficult to get approval, Olson says. The company that approves them will depend on the type of heart disease (valvular disease, CAD, atrial fibrillation)

Insurance companies that treat Type 1 differently than Type 2 are looking for the following additional information in the underwriting process of applicants for health coverage. They will want to know the age of onset of the condition.

Acceptable health conditions will not only vary from insurer to insurer, but the costs of protection can vary significantly according to research conducted annually by the American Long-Term Care Insurance Association, the industry trade organization. Companies offer different discounts, says Jesse Slome, the organization’s executive director. It is especially important that people with diabetes work with an experienced professional who understands what different insurers look for.