1 group long-term care archdiocese of minneapolis and st. paul information meeting november 2008
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GROUP LONG-TERM CARE
ARCHDIOCESE of MINNEAPOLIS and ST. PAUL
INFORMATION MEETING
November 2008
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What is Long-Term care (LTC)?
• Long-Term Care is a variety of services provided to people who are unable to take care of themselves.
• Services can range from simple help with meal preparation, to assistance with activities of daily living, to 24-hour monitored care.
• We are all at risk for needing LTC and most of us have no LTC insurance coverage.
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Where is Long-Term care provided?
• Nursing Homes.
• Assisted Living Facilities.
• Alzheimer's Facilities.
• At Home.
– 78% of all long-term care services are provided at home or in the community.
• Adult Day Care Facilities.
• Adult Foster Care Facilities.
• Hospice Care Facilities.
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Long-Term Care (LTC) Statistics
35% of the population over the age 65 need LTC today.
• That equals 13 million Americans require LTC services.
• On Average: 1 of every 2 women.
• On Average: 1 of every 3 men.
However, LTC services are not just for the elderly.
• Many people needing Long-Term Care are working age adults between the ages of 18 and 65!
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What is Long-Term Care (LTC) insurance?
Pays for the costs of long-term care services
• It is not health insurance - - does not pay hospital or doctor bills
• It is not long-term disability insurance - - does not replace lost income
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Why should you consider this coverage?
LTC services are expensive!
• Annual cost for nursing home care is over $60,000.1
• The daily room and board cost in a nursing home in most states range from $120 to $220.
• Self-funding of LTC services: 46% of those admitted to a nursing home are
reduced to poverty within 3 months; 72% within a year.2
• Limitations of other sources:Medical Coverage, Medicare, and Medicaid.
1. American Health Care Association (ACHA), “Long-Term Care Insurance; Debunking the Myth”.2. Harvard University Study in Compensation & Benefits Review, May-June 1995
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Why should you consider this coverage?
Protection of personal assets!
Personal savings was not intended to pay for LTC
• Do you want your savings to go for LTC, or towards retirement?
• Do you want to borrow to pay for the costs of LTC?
Preservation of your own independence!• Changes and mobility in family structures and demographics.
Choice of care services!
• Choice of facility or home care professional.
Peace of mind!
• Many financial planners recommend a LTC policy as part of a sound financial plan.
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Why should you consider this coverage?
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When should you consider this coverage?
• The benefits of purchasing long-term care insurance when you are young can really add up!
• Many people think they will invest their money and buy long-term care insurance when they are older.
• 40-year old buyer still pays less in lifetime premium, even though he/she paid for more than twice as many years.
Age Entering Plan
$100/day
Total Years of Premiums Paid
(estimated to age 75)
Total Premiums Paid
40 35 $7,589
59 16 $10,948
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Education Pool LTC Plan
• Group Plan.
• Affordable Rates (Discounted Group Rates).
• Premiums are based on the enrollee’s age as of the effective date of coverage.
• Premiums are level - they do not go up each year!
• Some variable options to select from.
• Each policyholder is a separate “buyer”.
• Eligible family members may enroll even if the employee does not.
• Fully portable at same cost for same coverage.
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Education Pool Plan: Who can participate?
• All benefits-eligible Employees who are actively- at-work on the effective date of coverage.
• Spouses.
• Parents (Parents-In-Law).
• Grandparents (Grandparents-In-Law).
• Eligible applicants can participate at any time!
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What’s in the Education Pool plan?
• The Lifetime Maximum equals a “total pool of money” available for lifetime long-term care services.
• The daily benefit for Home-Based Care is 75% of the daily benefit for nursing home care.
• Hospice Care (both facility and home-based) is included.
• Alternate Plan of Care is included.
3-Year Plan 5-Year Plan
$100 Daily / $109,500 Lifetime Max $100 Daily / $182,500 Lifetime Max
$150 Daily / $164,250 Lifetime Max $150 Daily / $273,750 Lifetime Max
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What’s in the Education Pool plan?
• Caregiver Training. CNA will pay for training of an informal caregiver in your home; 3 days per year.
• Bed Reservation. CNA will continue to pay a long-term care facility for up to 21 days if you need to “hold” your space.
• Return of Premium at Death.This feature returns all or part of the premium you have paid to your beneficiaries if you die before age 75.
• Non-forfeiture – Future Benefit Guarantee. Optional Feature. After 3 years of continuous coverage, if you lapse coverage, the lifetime maximum benefit is reduced to the amount of premium paid or to 30x factor, which ever is greater.
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What’s in the Education Pool plan?
• Home Medical Technology. CNA will pay for assistive devices, medical monitoring, communications technology, and emergency response systems used in your residence. Also covers home modifications necessary to allow you to remain at home; $1,000 annually.
• Waiting Period. A waiting period must be satisfied before benefits can begin. 90 calendar days from date of certification. Only once per lifetime.
• Waiver of Premium. After you satisfy your waiting period, premiums will be waived while you are receiving benefits.
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Inflation Protection
Guaranteed Buy-Up Offering (GBO)
• Opportunity to purchase additional coverage at routine intervals; every 3 years.
• Amount based on health care cost surveys; but not to be less than 5% compounded annually, since the last offering.
• Guarantee Issue of the increase – no medical underwriting.
• Increases both the daily maximums and the lifetime maximum pools.
• Premiums for increased coverage based on your attained age.
What is covered under your LTC plan?
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What is covered under your LTC plan?
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Inflation Protection
Lifetime Compound Automatic Benefit Increase
• Designed to keep pace with inflation annually without ever increasing your premiums.
• The Daily Benefit amount will automatically increase by 5% compounded annually of the prior year’s amount, for life.
• Begins with year following effective date of coverage.
• Increases occur to both the daily maximums and the lifetime maximum pools.
• Initial premiums will be higher with this option, but will stay level for the life of the plan.
What is covered under your LTC plan?
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How do you qualify to receive benefits?
• Certification from a licensed health care practitioner
• One of two ways to qualify for benefits:– unable to perform 2 of the 6 Activities of Daily Living– Have a cognitive impairment such as Alzheimer’s
• Must incur expenses for LTC services.
• Must satisfy the waiting period.– 90 calendar days
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Enrollment
• Newly Hired Employees are Guaranteed Issuance if enrolling during their initial benefits eligibility period.
• Late-entrant Employees and Spouses can enroll anytime by completing Short Form Application.
• Parents, Grandparents, and In-Laws can also enroll at anytime by completing a Long Form Application.
• Enrollment Kit will provide everything that you need!
• Enrollment Kit is now available on the website!
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Education Pool LTC Plan Premiums
• Premium remittance is made with after-tax dollars.
• Employees, Spouses, Parents, Grandparents, and In-laws premiums:
– Directly billed to their homes.
– Several methods to pay premium can be established.
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• Toll-free Customer Service Center at:
866-234-9033• Hours:
– Monday through Friday
– 8:00 AM to 6:00 PM (ET)
• Website: www.ltcbenefits.com
Contact Information – For Participants
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• Website is www.ltcbenefits.com.
• Education Pool password is CHSLTCPOOL.
Contact Information – For Participants
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Website
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• CNA, headquartered in Chicago, is an insurance organization with a 100-year legacy built on financial strength, market stability, and commitment to its business partners and customers.
• Group long-term care insurance is one of the products sold by CNA Life & Group Operations, a business unit of CNA.
• The CNA company that underwrites group long-term care insurance is Continental Casualty Company.
• CNA’s first group long-term care client was established in 1988. CNA and Lufthansa have had a group long-term care relationship since 2001.
Who is CNA?
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• CNA is among the largest insurance organizations in the United States. CNA is a registered service mark of the CNA Financial Corporation.
• As of December 31, 2007, annual revenues were approximately $10 billion, and our assets at year-end 2007 exceeded $62 billion.
What is CNA’s Financial Strength?
A.M. Best Standard & Poor’s Moody’s Fitch
Continental Casualty Company
A (excellent) A- (strong) A3 (good) A- (strong)
Continental Insurance Company
A (excellent) A- (strong) A3 (good) A- (strong)
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Questions?