Debbie Dare, CLTC, LTCPLong Term Care Solutions Specialist

Celebrating my 22nd year in the LTC Insurance industry

Presentation PurposeExplain the importance of planning for

long-term care

Explain the myths associated with Long-Term Care

Explain how we can help you plan for long-term care

?

What is the 1st thing that comes to mind when you hear long term care?

For most people…It’s Nursing Homes. But in reality, it is …..

What is long-term care?The type of care needed if you can no longer

perform the normal Activities of Living (ADLS)Bathing, Continence, Dressing, Eating, Toileting or Transferring

The type of care needed when you are diagnosed as chronically ill

The type of care needed when you have a severe cognitive impairment, such as can result from head trauma or Alzheimer’s Disease

Examples…… Acute Care VS Long-Term Care

* Short duration * Lengthy duration 90 days

* Get better * Maintain function* Medical care * Personal assistance* Hospital or * Home, assisted doctor’s office living facility,

nursing home, or adult day Services

What are the benefits of planning for LTC?Help protect your LIFESTYLE

Help protect your family

Help protect and allow your retirement assets to grow

If you do nothing your plan may be to:Have your spouse or children provide care

Use your assets when your family can no longer provide care

Apply for Medicaid after almost all assets are spent

What are some of the situations that may require long-term care services?

Spinal cord injuryMotorcycle accidentsBoating accidentsUn-successful surgeriesStrokeHeart diseaseDementia

Nearly half of those requiring long-term care services are under age 65—including 5.3 million working age adults and 400,000 children.

Source: The Henry J. Kaiser Family Foundation, Kaiser Commission on Medicaid Facts, 2001.

Where are long-term care services provided?

At homeIn a community setting, such as an adult day

care or adult day health centersIn various facilities that assist people with long-

term care needs; for example, assisted living facilities, residential care facilities or residential care facilities for the elderly*

In hospice home-care programs or facilitiesIn nursing homes

*Facility types vary by state. For more information on the various types of facilities in your state, consult with your sales representative.

Myths Associates with LTCIt won’t happen to me

I’m already covered

My family can take care of me

I can’t afford long-term care insurance

Myth #1

“It won’t happen to me.”

Fact:“In 2006, about nine million men and women over the age

of 65 needed long-term care”

Since 2006 Stroke has been the leading cause of serious, long-term disability in the United Sates.

Each year about 795,000 people suffer a Stroke. About 600,000 of these are first attacks and 185,000 are recurring attacks.

Every 30 seconds, someone in the U.S. has a Stroke.

Sources: Health Insurance Association of America, A Guide to Long-Term Care Insurance, The American Heart Association & The American Stroke Association, Heart Disease and Stroke Statistics 2009.

Do you agree you are at Risk?LTC RISK AGE TODAY

RISK AGE?

Doesn’t it make sense to plan TODAY for that risk?

Myth #2

“I’m already covered.”

Fact:Long-Term personal/custodial care is NOTcovered by:Individual Medical PlansGroup Health PlansHMOs (Regular or Medicare)MedicareMedicare SupplementDisability Income Insurance

What is Medicare? What does it cover?

Government health insurance program for people age 65 plus

Pays for skilled nursing facility up to100 days per spell of illness following hospitalization

Pays for some skilled at-home care but only for short-term medical conditions and NOT for ongoing assistance

What is required for Medicare to pay for care in a skilled nursing facility?

Must receive skilled careMust be a Medicare certified facilityMust follow a 3-day consecutive hospital

stayPays 100% of cost for first 20 daysA co-payment of $137.50 is required from

days 21 – 100No coverage after day 100

What is required for Medicare to pay for home health care?

Must need doctor approved at-home skilled care and plan for that care

Must need intermittent skilled nursing care, physical therapy, speech pathology or occupational therapy

Medicare-certified home health agencyMust be homebound

Myth #3

“My family can take care of me.”

What sociological changes have impacted caregiving responsibilities?

Smaller families living farther apart

Women in the workforce

Delayed childbirth

Divorce

Fact:In a study of working caregivers, (10) “Women

who are family caregivers are 2.5 times more likely than non-caregivers to live in poverty and five times more likely to receive Supplemental Social Security (SSI).”

“In 2000 typical working family caregiver lost $109 per day in wages and health benefits due to the need to provide care at home.”

20% - cut back to part-time22% - took a leave of absence

(10) CareConnection.com 2/2010 – Health and Retirement Study, National Institute of Aging, 1992-2004

Myth #4

“I can’t afford Long-Term Care Insurance.”

Can you afford the cost of long-term care?A home health care aide costs an average

of $33,069 per year, based on $18.12 an hour for 5 hours per day

Average annual cost of Assisted living is $54,000, based on $150.00 a day

Average annual cost of Nursing Home care for a semi-private room is $73,080, based on$203++ per day

Genworth Financial 4/2009 CareScout Study

Medicare: Reality Vs. Perception

Medicare covered only 13.7% of total nursing home and other institutional care expenditures(7)

Yet… 55% of American age 45+ believe Medicare

covers nursing home stays for 3 months or more for age related or other chronic conditions

Source: (7) Department of Health and Human Services, Centers for Medicare and Medicaid ServicesOffice of the Actuary, Personal Health Care Expenditures, 2001.(8) AARP (American Association of Retired Persons). The Costs of Long-Term Care; Public Perceptions Versus Reality, 2001

What is Medicaid?How does it work?

Federal government pays a share of the medical assistance expenditures under each state’s Medicaid program

Requires “spending down” to near depletion of financial and personal assets

You may be temporarily ineligible for benefits if you transfer assets

Source: United States Health Council, Long-Term Care Planning-A Dollar and Sense Guide, 2002.

What are your wishes?

Stay HomeMaintain normalcy in your familyFreedom from financial burdensNo burden on family members/caregivers

Compare the Cost of LTC Insurance to the Cost of Care

AgeAge Monthly Monthly $$

3535 $28 - $28 - $37$37

4545 $46 - 54$46 - 54

5555 $78 -84$78 -84

Type of Type of CareCare

20092009 20302030

MonthlMonthly y

Home Home CareCare

$2,700$2,700 $5,667$5,667

MonthlMonthly y PersonPersonal Careal Care

$4,500$4,500 $6,241$6,241

MonthlMonthlyy

NursinNursing g HomeHome

$6,000$6,000++

$15,88$15,8833

VSCost of LTC Insurance

National Average Cost of LTC

Services

MedAmerica or MetLife $3000 a month, 3 year Benefit Period 100% Home care, 90/100 Day Elimination Period, 5% Automatic Simple Inflation. Cash from MedAmerica - Indemnity from MetLife

Long-Term Care Insurance can help:

Maintain lifestyleMaintain choice on how & where to receive

careProtect family assets & financial futureMinimize physical, emotional and financial

dependence on familyProtect retirement assetsAssure high-quality careFills the gaps of other insurances

Why Address This Now?

Younger active lifestyle, with more accidents and injuries

Ability to balance $’s you put into 401k, etc., with the cost of a long term care insurance policy.

Modern medicine is diagnosing diseases earlier and earlier

Tightened underwriting (you could become ineligible earlier)

LTC insurance is affordable, based on benefit design!

How can we help?

Sign up for a one-to-one meeting by completing the “Can you afford NOT to plan for Long Term Care!” and/or the Health Questionnaire and

faxing to Debbie at 717-652-5884.

QUESTIONS?????

Thank You!