Own Your Future is an interagency initiative of the Dayton-Prettner Solon Administration1

“Own Your Future” MinnesotaPlanning for

your Long-Term Care

This presentation has been prepared by the Own Your Future initiative

It includes the Own Your Future logo. No other logo can be added to this presentation.

This PowerPoint can only be presented by members of the Own Your Future Advisory Panel and staff.

Copies of the PPT may be made to distribute to employees or members or networks of community organizations.

Own Your Future 2

Use of this presentation

Minnesota’s “Own Your Future” is a joint federal/state effort to raise awareness among Minnesotans about the importance of creating a plan for your long-term care, including how you will pay for that care.

mn.gov/ownyourfuture

3

Own Your Future!

Who needed care? Where was the care received? How was it paid for? Who provided the care? How long did the person need care? How did long-term care affect the family?

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What Is Your Experience With Long-Term Care?

What is long-term care? The impact of your long-term needs on

you and your family Why plan ahead for long-term needs? Who pays for long-term care? Where to find information to help create a

plan including available financing options

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What Will We Discuss Today?

The help you need with daily personal care and household chores because of chronic illness, injury, disability or old age

Activities of Daily Living (ADLs)◦ Bathing, dressing, eating, using the toilet,

transferring (to or from bed or chair), caring for incontinence

Supervision needed because of cognitive impairment like Alzheimer’s disease

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What Is Long-Term Care?

People are living longer Minnesota has the second longest life expectancy

in the nation 70% of people over 65 will require some long-

term care* 40% of those currently receiving long-term care

are adults age 18 to 64* Minnesotans 85+ will triple by 2050

*National Clearinghouse for Long-Term Care Information

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Who Needs Long-Term Care?

2010 2015 2020 2025 2030 2035 2040 2045 20500

50,000

100,000

150,000

200,000

250,000

300,000

350,000

108,910119,200 125,410

139,340

168,890

221,790

257,000

301,000

324,000

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Minnesotans 85+ will triple by 2050

At home (the home of the person receiving care or a family member’s home)

In the community (adult day service centers)

In residential care settings (assisted living, board and care home, adult foster care home, continuing care retirement communities)

In nursing homes (intermediate or skilled nursing facilities)

At hospice facility(facilities specifically for those receiving hospice care/end of life care)

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Where Is Long-Term Care Provided?

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7.32

3.412.34

Own Your Future Minnesota, an interagency initiative of the Dayton-Prettner Solon Administration State of Minnesota 10

Value of Caregiving vs. Medicaid Expenditures in Minnesota

Source: MN Dept. of Human Services, 2010; Reported in billions of dollars

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Long Term Care Costs In Minnesota

Average Daily Nursing Home Rate Private Room

Average Daily Nursing Home Rate Semi-private Room

Average Monthly Cost in Assisted Living Facility

Adult Day Care Daily Rate

Home Health Aide Average Hourly Rate

Homemaker Services Average Hourly Rate

$234$85,775/ annual

$210$76,650/ annual

$3,316*$39,792/ annual

$75$27,375/ annual

$25$20,000/ annual Est.

$22$20,000/ annual Est.

*Not all-inclusive; additional charges for home care services Source: Genworth 2012 Cost of Care Survey, Genworth Financial

34%

32%

26%

7%

Chart Title

Medicaid

Medicare

Out-of-Pocket

Private Insurance/Other

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Who Pays for Long-Term Care in Minnesota ? (2010)

Source: MN Department of Human Services, 2010

No answer

Something else

Support from children/family

Home equity (e.g., reverse mortgage)

Long-term care insurance

A government program

Personal savings or investments

Don't know

0% 5% 10% 15% 20% 25% 30% 35%

5%

1%

1%

5%

16%

18%

22%

32%

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Minnesota Boomers’ Plans to Cover Cost of Long-Term Care (2010)

Source: Minnesota Boomer Survey, MN Dept of Human Services, 2010

It’s difficult to predict if or how much care you will need, whether you will have family or friends who can provide some or all of your care, and how much the care may cost you.

It’s easy to predict that if you need extensive long-term care or need services over a long period of time, you will have to pay for some or all out of your personal finances.

Making decisions about long-term care during a crisis is the riskiest thing you can do. The outcome is usually bad—little time, few choices, no control over where you might end up for the rest of your life.

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Why Plan for Long-Term Care Needs?

You learn what service options are available in your community.

You can save assets and income for other uses and preserve the quality of life for your spouse or other loved ones.

You avoid emotional and financial stress on you/your family.

You involve your family without depending on them to bear the entire burden alone.

You ensure greater independence if you need care. You can stay at home or receive services in the community

for as long as possible.

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How Can Planning Help?

Insurance Options Savings Options Home Equity Options

Long-term care insurance Personal income and savings

Sell your home

Partnership long-term care insurance

Long-term care annuities Home equity loans

Life insurance with long-term care rider

Health savings accounts Reverse mortgages

Accelerated death benefits Trusts

Viatical settlements

Life settlements

Veterans benefits

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What Financing Options To Consider?

For more information on all of these options, visit mn.gov/ownyourfuture

To make people aware that everyone can create a long-term care plan Learn why it’s important to plan Resources to assist you in getting started Learn about common housing choices and

services Learn about private financing options Receive tools to help you make smart, safe

decisions about long-term care Find local resources for more information

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Why “Own Your Future” Minnesota?

1.

• Own Your Future Initiative• Urge individuals to plan for long-term care

2.

• Affordable Product Development• Identify products for middle income individuals

3.

• Explore reform of MA Long-Term Care provisions to better support and incent private financing

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Own Your Future Components