A few months ago, I was made aware of a company called CareScout, that has a network of care companies that they refer their Long Term Care Clients to. I was thrilled with the idea of helping more clients, and even better clients who had Long Term Care policies to help pay for services.
As with most things, there was a catch. In order to be a in the CareScout Quality Network, you must offer the highest quality care (of course) at a 20% discount from your regular base price. As a Medicaid Waiver Provider, I explained to the account representative that a 20% discount was below the Medicaid Waiver rate, and legally we cannot offer a discount lower than what Medicaid pays. True North offers very fair pricing at $35 per hour, while some companies in town charge as high as $45 per hour. No matter how I calculated it, it just didn’t make financial sense to offer services to a client with LTC insurance a 20% discount from clients who are paying out of pocket.
A few months later, I get a call from a hospice nurse in Omaha, who’s client was told by his LTC insurance company, to use a CareScout Quality Network provider, as it would save her money with their discounted rate. I asked what the rate, was….$45 per hour! The “discounted” rate was a $10 increase from True North’s standard pricing.
When I reached out to CareScout about this inconsistency, I was told they could not negotiate their 20% discount requirement. I waited a few weeks, and then asked them if I could apply again if I raised my prices, and wouldn’t you know it, that was an option.
Long Term Care Insurance has been a blessing for so many of my clients as it paid the majority of their care costs. But as a consumer, do you want to be told you are getting a discount when in reality, you aren’t? When is “the highest quality” ever offered at a 20% discount? In my opinion, companies willing to offer a 20% discount are either 1) Charging too much to begin with or 2) not charging enough to offer the quality and consistency clients expect, and be able to stay in business.
My advice: check your long term care insurance policy and see what options you have, and advocate for yourself to get to choose the company that meets YOUR expectations.
