A long-term care specialist with more than 30 years’ experience in the industry, MedAmerica is a company focused exclusively on providing protection and financial support for people who need long-term care and their families. The company has paid more than $614 million in claims since its founding in 1987 and currently provides coverage for more than 100,000 policyholders. The company is a subsidiary of Lifetime Healthcare, a nonprofit health insurer based in New York.
Long-Term Care Insurance Policies
MedAmerica offered multiple long-term and short-term care solutions, with their innovative and highly flexible “Simplicity” policy being held in especially high regard by customers and agents alike. However, as of February 16, 2016, MedAmerica is no longer issuing new long-term or short-term care insurance policies. The company’s president, Bill Naylon, cited economic factors, particularly low interest rates, as the reason for their withdrawal from the industry. Many other long-term care insurance companies such as CNA, John Hancock, and MetLife have decided to stop issuing policies for similar reasons. Policies purchased from MedAmerica prior to the company’s withdrawal are still in effect and claims can be made as usual.
Reputation and Financial Strength
MedAmerica received a financial strength score of A- (strong) from Standard & Poor’s, one of the leading independent ratings agencies. Ratings like this are important because they reflect the financial soundness of the company and thus can be used as a predictor for whether that company will be able to pay out claims in the future. MedAmerica’s website reports a customer satisfaction rating of over 90%, and customer reviews on other websites are indeed mostly positive, though there has been some concern about sharp increases in premiums.
Be sure to take a look at our other articles to learn more about the various insurance companies offering long-term care policies. Remember – these policies and the companies that issue them can differ greatly, so it really does pay to do your research and shop around.
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