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Welcome toWelcome to“10 minutes” on “10 minutes” on Long Term CareLong Term Care

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Today we’ll explore

•Risks

•Costs

•Solutions

Paul WorkmasterLTC Specialist

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?Long Term Care – The Key Questions

1. What is LONG TERM CARE?2. What is LONG TERM CARE INSURANCE?3. What are my RISKS of needing care? 4. What could Long Term Care COST me?5. How do I QUALIFY to receive MY BENEFITS? 6. What are my OPTIONS?7. How do I QUALIFY FOR COVERAGE?8. How do I choose MY BENEFITS?9. How do I select the RIGHT Insurance Company?10. Is Long Term Care Insurance Right for Me?11. WHEN should I buy Long Term Care Insurance?

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What is Long Term Care?

• Long term care is the medical and social services term for helping people who develop disabilities or chronic care needs.

• Long term care services may be brief with full recovery, or they can continue for many months or years.

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Where is care given?

• Settings Your Home Adult Family Homes Adult Day-Care Assisted Living Facilities Alzheimer’s Facilities Nursing Homes

• Services Personal Care Homemaker Services Skilled Nursing Care Physical Therapy

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What is Long Term Care Insurance?

• Long Term Care Insurance pays for long term care services and related expenses so you don’t have to.

• Policies vary in terms of what they will cover.

• Insurance Companies do require that applicants qualify for the coverage.

Fire insurance

Liability insurance Major Medical

Risk of needing long term care

What risks can wipe out your nest egg?

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Do you know anyone who:

• Had a devastating fire in their home?• Lost their assets in a lawsuit?• Suffered a catastrophic major medical loss?• Needed some kind of long term care?

Fire insurance

Liability insurance Major Medical

Risk of needing long term care

Why should the risk of needing long term care be any less important than the need to protect against these other risks?

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Long Term Care Fact Sheet

• 12 million people are currently receiving long term care and that number is growing.

• 82% of those cared for are either at home or in Assisted Living.

• Only 18% of those needing care are in nursing homes.

• 39% of people needing long-term care are working age adults, ages 18 to 64.

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…Long Term Care Fact Sheet

Aging of America:

• 78 million Americans are baby boomers and will begin turning 65 in 2011

• 35 million Americans are currently over age 65, growing to 70 million by 2030

• Fastest growing segment of population – 85+ will grow to 8.5 million

• 75,000 people over age 100, projected to triple in 20 years.

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…Long Term Care Fact Sheet

Average stays: Home Health Care . . . . . . . . . . . . . . 4.5 years

Assisted Living . . . . . . . . . . . . . . . . . . . 1.5 yearsNursing Home . . . . . . . . . . . . . . . . . . . 2.4 yearsLife span of Alzheimer’s patient: . . . . . . 4.9 average,

5.7 for women, 4.2 for men

Home Health Care . . . . . $ 18/hour = $78,840/yearAssisted Living . . . . . . . . $110/day = $40,150/yearAdult Day Care . . . . . . . . $ 55/day = $20,075/yearNursing Home . . . . . . . . $189/day = $68,985/year

Long term care costs are projected to triple in24 years (current costs/national averages).

Can you imagine a greater threat than the need for Long Term Care that can involuntarily drain away your assets,rob you of your dignity, and take away your independence?

Based on $69,000 per year for nursing home care, let’s seehow long a $300,000 nest egg will last:

$300,000 divided by $69,000 = 4.3 years

Wow! I bet if you’re like most people it took far more time than 4.3 years to accumulate that wealth! What do you think?

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If your lifetime goal is to pay for a new wing in your local nursing home, doing nothing could be just what you need to do to make this goal a reality.

Don’t think of LTCi as nursing home insurance. It is actually Nursing

Home Prevention Insurancebecause you get to choose where

you will receive your care.

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What are Common LongTerm Care Options?

• Family• Government - Medicare/Medicaid• Spend Personal Assets• Transfer the Risk

Long Term Care Long Term Care InsuranceInsurance

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…Options - Family

• Smaller Families Living Farther Apart

• Women in the Workforce

• Inadequate Experience in Providing Care

• Physical and Emotional Demands

• Personal Dignity

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…Options - Government

• Medicare National health insurance program for

people 65+ NOT intended to provide long term NOT intended to provide long term

custodial carecustodial care• Medicaid

National welfare program created for the poor

Provides primarily for institutional care Access is becoming MORE Access is becoming MORE

RESTRICTIVERESTRICTIVE

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…Options - Transfer the Risk

• Ensure a Choice of Care (Who, Where, When)

• Guarantee Access to Quality Care• Avoid Indignities of Medicaid• Maintain Independence• Help Protect Assets• Help Protect Your Spouse’s and

Your Family’s Quality of Life• Relieve the Burden on Your Loved

Ones

Long Term Care Long Term Care InsuranceInsurance

The Ohio Partnership Plan =financial relief for Ohio’s Medicaid program.

• Nationally only 7% of Medicaid claims are for long term care.

• But those 7% account for 52% of Medicaid’s budget.

• Something had to give so Ohio decided to give consumers an incentive to buy LTC insurance.

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• Ohio offers a dollar for dollar plan.

• For every $1,000 of LTC insurance you buy, you get to keep the same value of assets and still qualify for Medicaid’s help.

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How do I qualify forcoverage?

• Underwriting Process 6-8 weeks

• Application Telephone or Face-to-Face Interview Health History of 10 Years Current Medications

Stability of Condition Hospital Stays/Emergency Room Visits Surgeries Lifestyle

Exercise Smoker Height/Weight

Kinds of Policies

HIS HERS

HIS HERS

INDIVIDUAL

SHARED

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How do I choosemy benefits?

Required Benefit Selections• Monthly (or Daily) benefit• Benefit period• Deductible

Optional Benefit Selections• Inflation protection• Shared policies• Restoration of benefits• Survivorship• Spousal Waiver of premium• Waiver of deductible• Return of premium

Money Saving Tips• Partner discounts• Preferred health discounts• Group and/or employer discounts

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How Do I Qualify toReceive My Benefits?

• Require Help with Two Activities of Daily Living

Bathing Transferring Toileting Eating Dressing Continence

• Require Supervision Due to Cognitive Impairments

Memory Orientation Reasoning

• Your Doctor’s Certification that you meet one or both of the following criteria;

And the care is expected to last at least 90 continuous days

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How do I select the Best Insurance Company for me?

• Strong Financial Reserves A.M. Best Rating of A or better

• 20+ Years Experience Offering LTC Insurance• A History of LTC Rate Stability• At Least 500,000 LTC Customers • History of Paying LTC Claims in a Timely

Manner

Information is available Information is available from the Ohio Insurance from the Ohio Insurance

DepartmentDepartment&&

Paul WorkmasterPaul Workmaster

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Is Long-Term CareInsurance for me?

• Do you want peace of mind? • Do you want to maintain your independence?• Do you want to make certain you have access

to quality care?• Do you want to avoid being a burden to your

children or spouse? • Do you want to protect the assets you’ve built

over a lifetime?

What price would you be willing to pay to answer What price would you be willing to pay to answer

““YESYES” ” to any of these questions?to any of these questions?

YESYES

YESYES

YESYES

YESYES

YESYES

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When should I buy LongTerm Care Insurance?

• Premiums are based on your age when you apply

• Eligibility is based on your health when you apply

• The younger you are the less costly your premiums will be

• The younger you are the more likely it is that you will qualify for coverage

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When should I buy LongTerm Care Insurance?

A wise Chinese proverb says:

“The best time to plant a tree is 20 years

ago; the next best time is today.”

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Questions???