Long-term Care Insurance & Planning

The theory sounds something like this: the baby boomers are aging, so retooling products and services to meet their needs as they age will mean a windfall.  Right?  Maybe.  Experience has told me that only a small minority of the population are what are traditionally called “planners.”  They not only think (worry?) about the future, but they invest time and money into making their own future better.  They don’t deny, they act.

In today’s Wall Street Journal (April 25, 2008), I read “Designing for the Senior Surge.”  One sentence made me smirk: “Unlike their parents, who often moved into retirement communities or assisted-living centers, most boomers plan to remain in their own homes, surveys show.”  My significant experience, in regularly talking with audience members across the country, and sharing ideas with their financial and legal advisors, has taught me that baby boomers are MORE likely to consider alternate retirement housing, such as planned communities.  I guess it depends on how you define a home.  Baby boomers have been much more mobile than their parents.  Their parents, however, lived in the family home for decades.

Anyway, the Journal reported on aging-friendly home products, such as applicances with larger display panels, and dishwasher drawers that can “sit directly below the kitchen counter, or even on top of it.”  Other ovens and refrigerator/freezers are designed to reduce bending over.  Makes sense, but I’m skeptical.  These appliances are expensive, and I don’t believe that most people will be motivated to buy them until they run headlong into a crisis and acute need.  And that’s not usually a time that you want your kitchen renovated.

Spending more money today to make life easier in the future is not a huge motivation for most.  That’s why retirement savings rates are so low.  But, if you’re planning a kitchen renovation anyway, why wouldn’t you consider these age-friendly (and back-friendly) options?

Choosing a nursing home for a parent or other loved one can be among the most difficult decisions you’ll ever make.  Not to mention, years later, is the nursing home still the best choice?  How does it compare to others in the area?  Nothing can replace a visit in person as a way of checking out a facility, but wouldn’t you want to know what the regulators say about a nursing home?  And, wouldn’t you want to know if residents have repeatedly been in harms’ way at a nursing home?

On April 24, the Wall St. Journal reported on the variety of sources where you can find information on nursing homes (page D1 “Web Sites Expand Rating Information On Nursing Homes“.  It’s interesting to note that the web sites that they listed all use the same data as is found in the federal Medicare Nursing Home Compare site (www.Medicare.gov).  Some sites, such as www.HealthGrades.com charge for thier reports.  I preferred the free site www.MemberOfTheFamily.net, which reports the data in a way that I believe most family members want to see, highlighting facilities with the highest frequency of violations and those that have put residents at risk.  States also have their own sites, but that information is already incorporated at the Medicare site.

One caveat: only Medicare and Medicaid approved nursing homes are in the Medicare site (and, presumably, the other sites).  That includes most, but not all, nursing homes.  For example, here in Plymouth, MA where your trustly blogger lives, we have a private-pay-only nursing home called Newfield House.

Yesterday morning I was running on the treadmill in my health club, and saw this Today Show report about criminals who are now residents in nursing homes and commit crimes upon their fellow residents. 

Like many of the issues around long-term care, this topic elicits many emotions.  And, like other issues, it isn’t easily solved.  There are three points that I want to make here. 

ONE: vulnerable populations (of any age) are easy prey to criminals, whether they live in their own home or in a facility. 

TWO: as horrific as it is (and unmentionable), physicial and emotional abuse of elders is often inflicted by close family members (wouldn’t it be interesting to know if an elder is best protected against criminal activity when living with family vs. on their own vs. in a facility?) 

THREE: Medicaid reimbursement of long-term care facilities is on the ropes financially, and it is the primary payment source for most residents.  Will the proposed fixes to the nursing home predator problem be funded by higher taxes or cuts in other nursing home expenditures (PBJ instead of roasted chicken for dinner?).

Wes Beldsoe, described as an eldercare advocate, and interviewed in the Today Show piece, has tracked more than 1,600 registered sex offenders who live in eldercare facilities.  As he says, “When you put predators in with the prey, someone’s going to be bit.” 

That’s true whether the predator lives in the house down the street, or in the next nursing home room.  There’s no easy fixes here.  Your ideas?

View the video at the Today show site, by clicking this link.

DAHU LTC Expo Meeting Details  Many of the events at which LTC Planning Month Founder Marilee Driscoll speaks are private.  However, next Friday, anyone with a hunger for knowledge about long-term care planning and $50 ($40 for AHU, MAIFA, WIFS members) is welcome to attend the Dade Association of Health Underwriters’ Long-term Care Expo.  Marilee Driscoll, your trusty blogger, will be the featured luncheon speaker, preceded in the morning by Stephen Moses, President of the Center for Long-term Care Reform.  The two speakers are being described as “Two Legends in the Long-Term Care Insurance Industry.” The location is Don Shula’s Hotel in Miami Lakes.  Continuing Ed credits (for insurance agents) and lunch will be provided. Full details are at the document you will open when you click on the link that precedes paragraph (DAHU LTC Meeting Details–that will bring you to a new screen where you click on the document name again to open), or you can call the Dade Assoc. of Health Underwriters at (305)944-0606.

The January 2008 National Edition of Agent’s Sales Journal ran our response to the following question: What is your expert prediction on sales of long-term care insurance for 2008 and beyond?  A Peek at 2008 - Experts’ Predictions on Market Performance in the New Year ran our answer, along with the answer of Jesse Slome, the Executive Director of the American Association of Long Term Care Insurance.

Here’s some of what this blogger predicted: 

“New sales remain extremely disappointing, yet I remain rationally optimistic of the long-term viability of the LTCI industry… Obtaining consumer awareness was the battle two decades ago, but it no longer needs to be fought. Consumers are aware, yet they’re not buying. So, instead of beating a dead horse, the LTCI industry needs a credibility-building campaign for agents and consumers. Both groups have been scarred by the reality of rate increases, companies fleeing the market, and other concerns…  [Read the rest of our answer and the rest of the article here.]

I won’t miss tonight’s PBS special “Caring For Your Parents“, and, hopefully, you won’t either.  Reviews of the show say it’s a bleak, depressing look at the difficulties of aging and the sad responsibilities of adult children.  Although it sounds like as much fun as a colonoscopy, for those of us interested in the topic of long-term care planning, it’s must-see TV.  Find the details on when your local PBS station is airing the special at this link.

Aging, longevity, and long-term care are increasingly becoming prime-time topics in American television.  I think it’s good that these topics are being seen on TV.  Seeing other people and other families face aging, whith both its richness and its challenges, helps us as we do our own planning.

Last night, ABC aired a new Barbara Walter’s Special “Live to 150,  Can You Do It?.”  We learned that more than 84,000 people in the United States are at least 100 years old, met several of them, including one who was the caregiver for her 80-year-old daughter.  Meet some inspiring people age 100+ at this short, compelling, video promo (it’s on the ABC site, and you’ll have to watch a short commerical first).   ABC has posted multiple short videos from the special, and several articles about the topic covered.  I didn’t know about the show ahead of time, and so I didn’t see the whole thing.