what is involved in longterm care planning? plan act evaluate
TRANSCRIPT
What is involved in long term care planning?
Plan Act Evaluate
Reasons some people say why they were not prepared for later life
“I never expected to live this long.”
“We didn’t think it would turn out this way.”
“We planned for a healthy retirement.”
Financing Long term Care: Dilemmas and Decisions
Major gap in financial planning throughout life
Gap in later life financial security
Few of us have done any planning
Won’t admit we might be affected personally
Financing Long term Care:Dilemmas and Decisions
We think we know more than we do!
Gaps in knowledge make planning for long term care tough!
Financing Long term Care
1. Recognize your risk
2. Understand costs and implications
3. Sort out expectations and goals
4. Understand financing alternatives
5. Take action now
Long term Care
Help with daily living activities and remaining independent
Wide range of personal, social and medical services
Provided in a variety of settings
Most who need long term care:
Live in their own homes
Receive unpaid caregiving from family/friends
Overestimate the chance of needing nursing home stay
Underestimate need for in home and community services
Who’s at risk?
57 percent over age 65
40 percent below 65 years of age
3 percent are children
Who’s most at risk?
Individuals 85 years and older
Individuals with chronic health problems
Individuals who lack social support and unpaid caregivers
Women
Prevalence of Long term Care Need
Age: 65 to74 In community: 11 percent In institution: 1 percent
Age: 75 to 84 In community: 22 percent In institution: 5 percent
Age 85+ In community: 49 percent In institution: 21 percent
What are the risks?
Potential Costs Underestimated
In-home care Degree of need and health status Type of service used
Visiting nurse: $100 per visit (Kiplinger’s, 2004) Home-health aide: $15 or more/hour (Kiplinger’s, 2004)
Community services Adult day care: $60/day ($15,000+/year) Assisted living - housing with services (common meals,
housekeeping) in North Dakota: rent - $15,720/year; basic services - $7,284/year (NDLTCA, 2005)
Skilled nursing home care One month average in U.S.: $5,500 ($66,000/year)
(Metropolitan Life Insurance survey, 2003) Northeast and West highest North Dakota: $144.48/day ($52,735/year) (NDLTCA, 2005)
Sort Out Later life Financial Goals and Expectations
Multiple/competing goals behind our decisions
Make goals known
Goals provide direction
Goals can be prioritized
If I would need long term care, I would expect to:
Remain financially independent
Maintain control of my finances
Keep my financial affairs private
Involve family members
Utilize government services
Leave an inheritance
Oklahoma Long term Care Survey
Findings of an AARP study – Fall 2004
1,146 respondents over age 60
Can We Talk?
Goals can be a common source of conflict Between spouses/partners Across the generations
Who needs to be involved? Spouse or partner? Adult children?
Identify areas of agreement and/or disagreement
On the meaning of goals, priorities, concerns
Understand Financing Alternatives and Consequences
No “one” financial answer
Later life goals should influence which alternatives are most appropriate
Consider a combination of alternatives
Who does pay for long term care?
Income and life savings of elders and family members
Sell home and use equity
Unpaid family caregivers provide majority of long term care
Who pays for long term care?
Medical Assistance (Medicaid) is a critical safety net
Who pays for long term care?
Who pays for long term care?
Long term care insurance will pay
Long term care insurance is NOT for everyone
Why plan now?
Peace of mind More choices and options Increases likelihood your goals
and wishes will be followed Reduces burden for others Reduces misunderstandings
and conflict
References American Association of Retired Persons. (January 2005).
Oklahoma long term care: A survey of AARP members. Available from: www.aarp.org
Consumer Reports. (November 2003). Do you need long term care insurance?, 68(7), 20-24.
Kiplinger’s Personal Finance. (February 2004). If your parents need HELP, 58(2), 76-79.
North Dakota Long Term Care Association (January 2005). Issue and Data Book. Available from North Dakota Long Term Care Association, 1900 11th St. N., Bismarck, ND 58501. Telephone: (701) 222-0660. Web site: www.ndltca.org
Stum, M. S. (October 2004). Financing long term care: A resource for families. Available from: www.financinglongtermcare.umn.edu