L St C llLone Star College

Long-Term Care Outreach & Education™ Program

Heidi New-Crockford Regina W. DavisLong Term Care Specialist Long Term Care Specialist713-857-9476 713-854-6773713-857-9476 713-854-6773Heidi@ltcfp.net Regina.Davis@ltcfp.net

Our mission: to educateOur mission: to educate business owners, their employees and retirees about long-term care planning

2

Who is LTC Financial Partners?

• Nation’s largest agencyg g y

• Specializes in long term care planning

• Leading provider of no cost educational seminars• Leading provider of no cost educational seminars

• Over 600 agents nationwide

• Average agent experience minimum 8 yrs

• Represent top insurance carriers

• Allows objective comparison

3

What is Long-Term Care?

Assistance and Care for Chronic Illness or Disabilities

Can be Physical or Cognitive Impairments

Caring versus Curing

4

Types of Long-Term Care

Skilled Care• Nursing Care & Therapies• Trained Professionals

Personal CarePersonal Care• Activities of Daily Living

Bathing Eating TransferringT il ti D i C tiToileting Dressing Continence

Supervisory Care• Monitoring and Support• Monitoring and Support

5

Where is long-term Care Provided?

Y h 1Your home1

Adult day care centers 20%

Assisted living facilities 80%

Nursing homes

Hospice facilitiesYour Home1

Hospice facilities

6

1U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care, www.longtermcare.gov, September 2008.

Who Needs Long-Term Care?

More than 12 million people in the United States d ki d f l t 1need some kind of long-term care1

• Average age 66

• 41% are working adults

7

Source: 1The Caregiving Project for Older Americans, "Caregiving in America" 2007http://www.ilcusa.org/media/pdfs/Caregiving%20in%20America-%20Final.pdf

Risk of Needing Long-Term Care

70% of people age 65+ will need some type of long-term care services during their lifetime! 1care services during their lifetime!

This makes long-term care one of the singleThis makes long term care one of the single biggest financial risks Americans face today!

8

Source: 1 U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, www.longtermcare.gov.

Growing Need For Long-Term Care

An Aging America• 37.9 million Americans are over 65, 88.5 million by

20501

• By 2040 the population age 75+ will exceed that of age 65-742

• Centenarians are the fastest growing age group1

Families in Transition• Family’s demographics?

L L ?• Love-Legacy?

9

1US Census Bureau, Facts, Older Americans Month: May 2009!

2National Center for Health Statistics, Health, United States, 2006 With Chart book, Hyattsville, MD: 2006

Growing Need For Long-Term Care

10

1US Census Bureau, Facts, Older Americans Month: May 2009!

2National Center for Health Statistics, Health, United States, 2006 With Chart book, Hyattsville, MD: 2006

Costs outside of Nursing Homes

Home Care$20 $25 per hour Home Health Aide$20-$25 per hour – Home Health Aide

Assisted Living Facility$3 000 $6 000 a month/ $36 000 $72 000 annually$3,000-$6,000 a month/ $36,000-$72,000 annually

Nursing Home$200 a day/$72 000 a year private room$200 a day/$72,000 a year– private room

$172 a day/$62,000 a year - semi-private room

11

Source: 2008 John Hancock Cost of Care Survey, conducted by CareScout, June 2008

Who Pays For Long-Term Care?

54% of Baby Boomers believe Medicare will pay for long-term care services, 44% said they b li ‘ th h lth i ’ ill 1believe ‘other health insurance’ will pay.1

12

1 StrategyOne for America’s Health Insurance Plans (AHIP), National Survey, October 2007

Medicare

Health insurance for senior Americans age 65+

Eligible regardless of economic status

Covers short term acute conditions cure vsCovers short-term acute conditions – cure vs. care

May cover up to 100 days with a co-payment for 80 of these days.

Not designed to cover long-term care costs

13

Medicaid

Means tested - health insurance for the indigent

Does cover long-term care services

Covers primarily nursing homesCovers primarily nursing homes

Must spend down state required limits to qualify

Deficit Reduction Act has made it more difficult to qualify for Medicaid by hiding assetsto qualify for Medicaid by hiding assets

14

Won’t the Veterans Administration take care of me?take care of me?

The VA has a priority system• Service-connected disabilities / income and asset criteria

• If priority ranking not met, on case by case, space available, basis

If you do qualify• First 21 days are freey

• Co-pay charges vary on income / as high as

$97 per day. y

• Limited to a VA facility

15

Understanding The Class Act?Community LIVING Assistance Services and SupportCommunity LIVING Assistance Services and Support

• Not fully implemented until 2012y p

• Voluntary government plan• Working adults 30 hours a week

• Pay premiums for 5 years and waiting 5 years before eligible for benefits

• Administered by Secretary of Health and Human Services

• Daily Benefit amount estimates $50.00; premium varies

Costs are increasing, will the public plan pay enough?

16

Why Planning is Necessary

The likelihood of needing LTC is high

The cost of care will increase

Other Health Care Plan LimitationsOther Health Care Plan Limitations

Risk of Depleting Retirement Assets

17

Paying For Long-Term Care

Spend Personal Assets (BE RICH)

Family Pays

Government

MedicareMedicare

Medicaid (BE POOR)

Transfer the risk (BE INSURED)

18

Designing an Insurance Policy

Th F C tThe Four Components

of a Long-Term Care Insurance

P liPolicy

19

Designing Your Plan

Monthly Benefit (how much) • How much does the insurance company pay per month?p y p y p• $1,500 - $15,000 per month

Plan Duration (how long)Plan Duration (how long)• Plan designs available: 2, 3, 4, 5, 6, 10, Unlimited• Pool of money

Elimination Period • 30, 60, 90, 100, 180 day elimination• Time DeductibleTime Deductible

Inflation Protection • Keeps your policy current with rising costs of carep y p y g• Future dollar values

20

Total Coverage

Home Care

Assisted Living

Adult Day Care

N rsing Home CareNursing Home Care

Hospice CareHospice Care

Comprehensive Coverage

21

Comprehensive Coverage

What Does LTC insurance Cost?

Premiums based on• Age and health at time you apply for LTC insurance

• Policy designPolicy design

• Discounts1

22

1 Discounts may vary by state. Discount available: Preferred Health Class, Marital/Partner and Family Discount

Triggers to Benefits

2 of 6 Activities 1. Bathing

2. Eating

3. Continence

4. Toileting

Cognitive

ImpairmentOR

5. Dressing

6. Transferring

p

90 D C tifi ti f N d23

90 Day Certification of Need

What is Important to You?

Aff d bilitAffordability

Simplicity

Choice and Flexibility

Asset Protection

24

Trust the Strength of the Top LTC Insurance Carriers

John Hancock Life Insurance Co.

MedAmerica Insurance Co.

Prudential Life Insurance CoPrudential Life Insurance Co.

United of Omaha Life Insurance Co.

Life Secure Insurance

U it d S it AUnited Security Assurance

25

1Life Insurance Management Research Association (LIMRA) Year-End 2008 Information is available upon request from John Hancock.

In Summary…….

• Comprehensive plans

y

• Guaranteed renewable

• Coverage is portable• Coverage is portable

• Discounts available for marital status, good health, & professional affiliations, and Employer (work-place) discounts

• Available to employees and family membersmembers

26

Next Steps…LTC Planning

1. Care Support Network – Free Online tools, & i f ti C i i lresources & information on Care giving, long

term care, in-home care, and more!

2. Questions & Answers

3 Evaluations3. Evaluations

4. Available to schedule a personal appointment

Thank you!27