Transcript Employee- Wage 2003

Insider’s Guide
to LTC
Insurance
W.A.G.E.
By
Susan E. Palla
and
Barry G. Eldridge
Individual Commercial
Administrators, Inc.
 2003 Individual Commercial Administrators, Inc
“The greatest risk to excess loss in
retirement savings today is
unanticipated LTC costs. Many
people are unaware of the high
cost of care, either in an institution
or in their home.
Average cost for part-time home
health care aide today is between
$12,000 and $16,000 annually”.
In 2002 there are 10 states where
nursing homes cost are over
$80,000 a year.*
*Barbara Stucki, American Council of Life Insurance, Washington DC. Nov, 2000
* GE Long-term Care Nursing Home Study, 2002
 2003 Individual Commercial Administrators, Inc
What is Long-Term Care?
Long-Term Care (LTC)
services may become
necessary for many
reasons:
• Result from natural or
disabling acts
• Serious accident or
illness
• Normal aging process
 2003 Individual Commercial Administrators, Inc
Long-Term Care isn’t just for the
elderly. Of the 13 million Americans
receiving care, 43% are working-age
adults between 18 and 64 years old.
Americans for Long-Term Care Security, www.ltcweb.org/learn.html, 2001
 2003 Individual Commercial Administrators, Inc
Americans are Greatly Impacted
by Caregiving
 Caregiving averages over 40 hours per week
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Financial help averages $500 per month
4 in 10 report a significant impact on work
2/3rds report a significant impact on family
3 in 10 say it has negatively impacted their health
1/2 of employed caregivers have made changes at work to
accommodate caregiving, such as flexible hours, or working
fewer hours.
 14% report having to cut back on funding their children’s
education
U.S. Department of Labor, Advisory Council on Employee Welfare and Pension Benefits Plans
Report, Findings and Recommendations of the Working Group on LTC, Nov, 2000.
 2003 Individual Commercial Administrators, Inc
Alzheimer’s Disease:
Impact is felt throughout the
workplace
The 1998 National Alzheimer's Association estimates that
2. 3 million employed caregivers tend to 4 million
Americans with the disease.
The Association found out the average full-time employee
caregiver is absent 13 days per year, is interrupted 50
hours per year and is involved in other time losses
amounting to 24 days per year.
Between one-tenth and one-fifth of caregivers leave
the workforce entirely.
 2003 Individual Commercial Administrators, Inc
How Does Long-Term Care Affect the
Workplace?
“One out of every four
employees is handling some
level of family elder care
responsibility right now.
Distance between loved ones
(family members) averages
100 miles away from each
other.”
 2003 Individual Commercial Administrators, Inc
Two Key Stages of
Employee Eldercare issues:
#1. The planning stagePre-retirement planning
or
#2. The time is NOW!
When the crisis strikes
home.
 2003 Individual Commercial Administrators, Inc
It is estimated that 45 %
of the disabled population
is younger than age 65.
No matter what age, your
state of health can change
and you may, at some
point, require LTC
services.
U.S. Dept. of Labor, Advisory Council on Employee
Welfare and Pension Benefits Plans, Nov. 2000
 2003 Individual Commercial Administrators, Inc
Danger to Employees
Most employers as well as employees
have the misconception that their
health insurance, Medicare
supplement and/or HMO will pay for
LTC services.
Most traditional health plans offer
coverage for a wide range of services
along with acute care expenses.
Custodial care is usually not included.
 2003 Individual Commercial Administrators, Inc
Custodial
Care:What is
it?
The care we take for granted. It
is best described as the care we
provide for ourselves every
morning when we get up.
(Activity of Daily Living- ADL)
Bathing
Dressing
Walking or Transferring
Toileting
Eating
Continence
 2003 Individual Commercial Administrators, Inc
“Medicare only covers
skilled care for a limited
time.
About 85% of nursing
home care is non-skilled
care, such as feeding,
bathing and dressing.”
Medicare does not pay for
non-skilled care or
custodial care.
Fortune, Living Longer and Better: Long-Term Care: A
Critical Piece of the Retirement Puzzle, Aug. 1998
 2003 Individual Commercial Administrators, Inc
OBRA 1993 - RECOVER AGAINST YOUR ESTATE
REQUIRES STATES TO RECOVER NURSING HOME
MEDICAID EXPENSES FROM THE
ESTATES OF DECEASED RECIPIENTS.
STATES CAN GO CLAIM ANY REAL OR PERSONAL
PROPERTY, INCLUDING THE HOME YOU HELD IN
YOUR OWN NAME.
THE STATE MAY EVEN RECOVER
FROM ASSETS YOU GAVE AWAY OR OTHERWISE
DISPOSED OF PRIOR TO DEATH, PROPERTY YOU HELD
JOINTLY WITH SOMEONE ELSE.
NO RECOVERY IS MADE FROM LONG TERM CARE
INSURANCE PAYMENTS!
©Individual Commercial Administrators, Inc
 2003 Individual Commercial Administrators, Inc
LTC Insurance is An Affordable
Safety Net for America’s
Workforce
Nearly half of us will require longterm care (LTC)*.
• services provided in one’s own
home
• alternative site such as an adult
day care center, or assisted living
facility
• nursing home care
Americans for Long-Term Care Security,
www.ltcweb.org/learn.html, 2001
 2003 Individual Commercial Administrators, Inc
Three Ways Long-Term Care
Insurance Helps You:
• Protects your assets and retirement
money.
• If your parents purchased the plan it
provides a caregiver so you can work.
• Allows the choice of who provides care
and where the care is provided.
 2003 Individual Commercial Administrators, Inc
The Greatest Problem
DENIAL
 2003 Individual Commercial Administrators, Inc
The Solution is
Long-Term Care
Insurance
 2003 Individual Commercial Administrators, Inc
Most Important Reasons to
Purchase Long-Term Care
1.
Choice & Remaining Independent
2.
Protection of Assets
3.
Avoid Emotional Burden on Family Members
4.
Guaranteed Affordability of Service
5.
Avoid Physical Dependence on Family
6.
Quality of Care
7.
Peace of Mind
2000 Health Insurance Association of America
© Individual Commercial Administrators, Inc.
 2003 Individual Commercial Administrators, Inc
• Read the information
provided by your
company, and educate
yourself to see if longterm care insurance can
benefit you and your
family.
Employee’s
First Step
 2003 Individual Commercial Administrators, Inc
What other risk do you know
that can change your life and
your family’s life - emotionally,
financially and medically?
 2003 Individual Commercial Administrators, Inc
L
iving Benefits to Preserve Lifestyle
T
otal Protection
C
hoice and Independence
© Individual Commercial Administrators, Inc.
 2003 Individual Commercial Administrators, Inc