Awareness Campaigns

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Growing Older, Planning for the FutureSummit
on the Issues of AgingSponsored by Congressman
Michael C. Burgess, M.D.
Planning for Future Medical CostsRod
PerkinsGenworth Financial
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Discussion Topics

• The Health Care Issues and Expenses Associated
  with Aging
• Options for Planning and Preparing
• Steps You Can Take and Resources Available to You

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Health Care vs. Long Term Care

• Health Care
• Treatment and prevention of specific health
  conditions
• Often associated with acute care

• Long Term Care
• Ongoing care after an injury or illness is
  stabilized, or care due to slowly deteriorating
  health (chronic care)
• Help with Activities of Daily Living such as
  dressing, eating, and bathing
• Help provided in your home, or a variety of
  settings or facilities

4
Health Issues Give Rise To LTC Needs

• Dementia
• Stroke
• Cardiovascular
• Musculoskeletal
• Brain

• Fracture
• Cancer
• Respiratory
• Other

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Funding Options

• Health Care

• Health Insurance Covers medical expenses such
  as doctor visits, hospital, and prescriptions

• Medicare US Government Program provides basic
  hospital, medical, and prescription drug
  insurance to Americans over age 65
• Medicare Supplement Insurance and Medicare
  Advantage Provides a supplement to Medicare
  Benefits
• Medicaid State and Federal government welfare
  program that provides health care to people with
  very low income and assets

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Funding Options

• Long Term Care

• Health Insurance Does not pay for most LTC
  including custodial care

• Medicare Does not pay for most LTC. Requires
  approximately 118/day in coinsurance starting on
  day 21 coverage ends on day 100. No coverage
  for assisted living or adult day care.

• Medicaid Only available after depletion of
  assets, limits choice as to available care

• Personal Savings If you have considerable
  savings and investments
• Family If your family can help financially or
  as caregivers
• Private Long Term Care Insurance

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Long Term Care Realities

• Most Americans (75) admit to having made no long
  term care plan for themselves or a spouse
• Four out of ten Americans will use a nursing home
  at some point after reaching age 65, and 60 will
  require some form of long term care
• 40 of those currently receiving long term care
  services are between the ages of 18 and 64
• Factors contributing to the risk of needing LTC
  include age, gender, lifestyle, and family
  history

• LTC is one of the greatest personal and financial
  risks Americans have not planned for

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The Cost of Long Term Care

• The average annual cost for a private room in a
  nursing home is 74,806 (Dallas - 55,023, Austin
  - 71,740, Houston - 64,678, San Antonio -
  64,612, Rest of TX - 48,446) (Genworth
  Financial 2007 Cost of Care Survey)
• Women typically need care for longer (on average
  3.7 years) than men (on average 2.2 years).
• Care may be required in a variety of settings,
  including
• Assisted Living Facilities (32,573/year)
• Home Care (32.37/hour for Certified Home Care
  Services, and 17.46/hour for Homemaker Services)
• Other models such as Adult Day Care are becoming
  more prevalent

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The Importance Of Having A Plan

• The cost of LTC services often exceeds what the
  average person can afford to pay from income and
  other assets. With a plan you may be able to
• Save your assets and income for other uses
• Have greater choice over where and how you
  receive services (such as being able to stay in
  your home longer)
• Reduce emotional and financial stress on you and
  your family and involve your family in the
  planning process

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Long Term Care Insurance

• LTC Insurance helps pay for the long term care
  services you might need as a result of a chronic
  disease, serious accident, sudden illness, or
  cognitive impairment such as Alzheimers
• Long term care services may be provided by a
  health care professional such as a nurse, home
  health aide, or other personal care providers
  such as a family member or personal care
  attendants
• Varying amounts of care can take place in a
  variety of locations ranging from a few hours of
  care per week at home to round-the-clock care in
  a nursing home

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Government Programs To Help You

• LTCI Partnerships
• Combine Public and Private resources to help
  individuals prepare and plan for their long term
  care
• Provide Medicaid asset protection equal to the
  benefits utilized from a qualified long term care
  insurance policy
• HHS Own Your Future Campaign
• A joint federal-state initiative to educate the
  American public about the importance of planning
  for future LTC needs
• Letter from Governor Perry sent to Texans ages 45
  to 65 (11/06)
• A Long Term Care Planning Tool Kit

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The Good News What You Can Do Now

• Assess your need for LTC Talk to you doctor
• Decide where you want to receive care Find out
  what is available in your area
• Talk to your family about care-giving and funding
  options
• Review your current coverage understand
  limitations
• Determine how you will fund your LTC (Private
  LTCI, self-funding, government programs)
• If you are employed, ask your employer about
  Group LTCI
• Investigate housing considerations (home
  modification, movement to a more suitable
  environment)

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Planning Information And Resources

• Visit the National Clearinghouse for LTC
  information at www.longtermcare.gov
• Obtain a copy of the HHS Own Your Future
  Long-Term Care Planning Kit at
  www.aoa.gov/ownyourfuture or 877-PLAN-LTC
• Contact the Texas Department of Aging and
  Disability Services at www.dads.state.tx.us/servic
  es for services for older Texans
• Compare private long term care insurance
  companies and obtain an LTCI Shoppers Guide from
  the Texas Department of Insurance at
  www.tdi.state.tx.us
• Contact the HHS Administration on Agings
  Eldercare Locator at (1-800-677-1116) for senior
  services and resources
• Obtain A Guide to Long Term Care Insurance
  provided by Americas Health Insurance Plans at
  www.ahip.org

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• THANK YOU!