On Wednesday, President Obama extended long-term care insurance  offerings to the same-sex partners of eligible federal workers.  This action takes a step beyond a memo Obama signed last year.  That memo permitted same-sex partners to use the Federal Long-Term Care Insurance Program and other benefits. The Office of Personnel Management has announced that same-sex partners will become eligible for this long term care insurance program next month.

Click here to download Minnesota’s 2009 Long Term Care Insurance Tax Credit Form

Click here to download a complete list of states which offer a tax credit or deduction.

More than half (84%) of individuals purchasing long-term care insurance do so prior to retirement age (65) according to a just-published research report by the American Association for Long-Term Care Insurance (AALTCI).  Newman Long Term Care is a proud member of the AALTCI. 

Study findings include:

• The average age of an individual purchasing long-term care insurance is now 57.  The average age of a buyer in 2000 was 67.
• 72% of those purchasing LTCI through the workplace were age 55 or younger.
• 24% of those buying LTCI through an employer plan were between age 35 and 44.
• After you turn 50, costs for identical coverage can increase by between five and eight percent for each year you delay.

Click here to learn more about the AALTCI study.

ARLINGTON, Va., Nov. 12 /PRNewswire/ — Even as the average annual cost of a home health aide now tops more than $40,000 and private nursing home care is approaching an average cost of $75,000 a year(1), a new survey by the nonprofit LIFE Foundation finds nine out of 10 Americans do not have a realistic plan to pay for these expenses. Nearly one in four say they will rely on family and friends, while others mistakenly believe their health insurance coverage or government programs such as Medicare will help pay their long-term care costs.

Released to coincide with Long-Term Care Insurance Awareness Month in November, the LIFE survey asked Americans what they would rely on most to help pay for long-term care services if they found themselves in need of assistance with the basic tasks of daily living, such as bathing, eating and dressing. Here’s how Americans responded:

Family and Friends__ 23%

Health Insurance__ 20%

Medicare__ 16%

Savings__ 13%

Social Security Benefits__ 11%

Long-Term Care Insurance__ 10%

Medicaid__ 7%

“These survey results illustrate that most people are confused about how they will pay for long-term care services, which is a scary thought considering 70 percent of Americans who reach age 65 will need such care at some point in their life,” says Deb Newman, CLU, ChFC, LTCP, president of Newman Long Term Care and a LIFE Foundation Board Member. “Health insurance will not cover long-term care services and government programs like Medicare and Medicaid have many limitations. That is why it is critical for Americans to take steps to protect themselves with long-term care insurance. It is the only way to make sure you will have the financial means to afford the kind of care you’ll need and prefer.”

To help increase awareness of the important role of long-term care insurance, LIFE reviews some of the common misconceptions people have regarding funding sources for long-term care:

— Health Insurance – Typically, health insurance only provides coverage for medical care and does not pay for custodial services for people who can no longer take basic care of themselves.

— Medicare – Medicare is a government-sponsored health insurance program for older Americans. It does not pay for most forms of long-term care; it only covers short-term rehabilitation after you have been hospitalized for at least three days, are homebound under a physician’s care or are eligible for Hospice services.

— Medicaid – Medicaid pays for long-term care services, but only for those with very limited assets who fall within their state’s determined poverty level.

— Social Security – The monthly benefit for the average retiree stands at $1,153, which is a fraction of what most long-term care services cost.

— Savings – Though the savings rate has begun to improve, the majority of Americans likely do not have an adequate amount of savings to cover the high cost of long-term care services.

“Many factors come into play when considering long-term care insurance, which is why it’s critical to work with a qualified insurance professional,” says Newman. “Doing so will ensure that you purchase a policy that best fits your needs and budget.”

To help people start thinking about long-term care insurance, the LIFE Foundation answers five basic coverage questions:

— How much coverage do you need and for how long? It’s important to determine how much the policy will pay for covered services – called the daily or monthly benefit. To determine an adequate amount, start by assessing the average cost for long-term care services in your area by using LIFE’s Cost Estimator at: www.lifehappens.org/ longtermcarecost.

— How long are you willing to wait for coverage to kick in? The longer you are willing to wait before benefits begin to be paid out, called an elimination period, the more affordable your policy’s premiums. Typical elimination periods are 30, 60 or 90 days.

— What types of services are important to you? Most of today’s policies will cover any number of care preferences and settings, whether services are provided at home by a health aide, offered in an assisted- living facility or nursing home. Find a policy that will be as flexible as possible so that any type of care will be available to you when you need it.

— How important is it to have a policy that keeps up with inflation? Inflation protection is one of the most critical components of a long-term care insurance plan because it helps your coverage keep pace with the rising cost of care.

— Does your policy qualify for a new state-run Long-term Care Partnership Program? Recently, federal and state governments have begun cooperating on Long-term Care Insurance Partnership Programs. These programs offer asset protection to policyholders with Partnership- qualified long-term care policies. Currently, over half of the states have established or are applying for Partnership programs. For more information, speak with an insurance agent in your area.

Survey Methodology

The LIFE Survey was conducted by Kelton Research between Oct. 28 and Nov. 3, 2009. The survey polled a nationally representative sample of 1,000 Americans, ages 18 and older, using an online questionnaire. The survey has a margin of error of +/- 3.1 percent.

About LIFE

The Life and Health Insurance Foundation for Education (LIFE) was founded in 1994 in response to the public’s growing need for information and education on life, health, disability and long-term care insurance. LIFE also seeks to remind people of the important role insurance professionals perform in helping families, businesses and individuals find the insurance products that best fit their needs. To learn more about these topics, please visit www.lifehappens.org.

(1) Genworth 2009 Cost of Care Survey

• The highest home healthcare aide rate was $30 per hour in the Rochester, Minn. area, while the lowest was reported in the Shreveport, La. area at $13 per hour.
• For nursing homes, the highest cost for a private room was reported in Alaska ($584/day) while the lowest was in Louisiana ($132/day).
• Assisted living costs were highest in Wilmington, Del. ($5,219/month) and lowest in North Dakota ($2,041/month).
• Adult day services were highest in Vermont at $150 per day and lowest in Montgomery, Ala. at $27 per day.

To download the entire study, click here. ]]> http://newmanlongtermcare.com/blog/?feed=rss2&p=70 0 http://newmanlongtermcare.com/blog/?p=66 http://newmanlongtermcare.com/blog/?p=66#comments Tue, 27 Oct 2009 00:16:32 +0000 Craig Roers http://newmanlongtermcare.com/blog/?p=66 Newman Long Term Care President Steve Pike was quoted extensively in the October 2009 issue of Boomer Market Advisor magazine. In “LTCI – The retirement planning glue that holds it all together”, the author focuses on LTCI’s critical need and to ensuring that clients don’t prolong the current economic hardship well into their retirement.

One of Steve’s quotes: “Really, it’s about putting things in perspective for the client, saying, ‘Look, the way you’re feeling about your retirement account losing 30 or 40 percent, that is exactly how you are going to feel 30 years from now if you have a long term care event and, because you don’t have [an LTCI] policy in place, you have to live on half of what you’ve got,’ with the other half going to cover the cost of care.

Read the entire article by clicking here.

Age 40 or less: $ 330

More than 40 but not more than 50: $ 620 

More than 50 but not more than 60: $1,230 

More than 60 but not more than 70: $3,290 

More than 70: $4,110 

The per-diem limitation under 7702(d)(4) for calendar year 2010 has increased to $290. 

To download a two-page tax primer, please click here. ]]> http://newmanlongtermcare.com/blog/?feed=rss2&p=54 0 http://newmanlongtermcare.com/blog/?p=44 http://newmanlongtermcare.com/blog/?p=44#comments Thu, 24 Sep 2009 14:40:27 +0000 Craig Roers http://newmanlongtermcare.com/blog/?p=44 Newman Long Term Care is a long-standing member of the National LTC Network.
We stand wholeheartedly behind this Open Letter to Congress sent by the Network.

Open Letter to Congress on Long Term Care Insurance and Health Care Reform

OVERLAND PARK, Kan., Sept. 23 /PRNewswire/ — As the Senate Finance Committee (SFC) resumes work this week on the health care reform bill, The National LTC Network urges Congress to consider two ideas.

First, include an above-the-line deduction for long term care (LTC) insurance premiums.  Although the current version of the SFC bill allows long-term care insurance to be included in Section 125 plans (aka “cafeteria plans”), Network President and CEO Terry Truesdell comments, “While we applaud this new tax incentive, we urge Congress to offer an above-the-line deduction for LTC insurance premiums.  Many employees don’t have Section 125 plans.  If they do, they lose the plan once they retire.  I believe that an above-the-line deduction could open the floodgates, encouraging citizens to purchase this important insurance and lessen the burden on government programs when they need care.”

Second, at least one current version of a health care reform bill includes a government long-term care insurance program.  The inspiration for the proposed bill is CLASS (”Community Living Assistance Services and Support”), a bill first proposed in 2007.

“Since the decision of how to pay for future long-term care is so important, we want to make sure that citizens understand both the pluses and minuses of any new government program,” says Truesdell.

The Network urges Congress to include a “black-box” buyer warning on program materials if a CLASS-type program is adopted.  Suggested wording:

• You are not eligible for any benefits for the first 5 years after signup.
• Your premium will increase if the government decides that additional money is needed to pay current and projected future claims.
• Since the average cost of LTC nationally is $18.50/hour/licensed home health aide, $94/day/assisted living facility, and $183/day/semi-private nursing home room, even with this program, you could be responsible for a significant part of your care costs.
• While some private LTCi policies (known as “Partnership”) can protect your assets if you need to go on Medicaid, this government program does not.
• You may want to supplement this plan, or replace it with, private long-term care insurance.

ABOUT NATIONAL LTC NETWORK

The Network is an alliance of leading distributors of long term care insurance.  The Network has 30 member firms who work with thousands of long-term care insurance agents.

The Network site:  http://www.NLTCN.com

*(LOGO Link 72dpi: Send2Press.com/mediaboom/09-0923-NatLTC_72dpi.jpg)

This release was issued on behalf of the above organization by Send2Press(R), a unit of Neotrope(R). http://www.Send2Press.com

SOURCE  The National LTC Network

Terry Truesdell of NLTCN, 1-800-514-2955, terrytruesdell@nltcn.com

On his blog, CBO Director Douglas Elmendorf states that the program would result in a decrease of $58 billion in the federal budget deficit from 2010 to 2019.  He then says:

CBO expects that the HHS Secretary would need to reduce benefit payments and increase premiums to maintain the program’s solvency. Assuming that the premiums and daily benefit amounts were $65 and $75, respectively, CBO estimates that benefit payments would exceed premium income within the first decade after 2019, leading to depletion of previously accumulated premium reserves (and accumulated interest on those reserves).

He concludes by saying:

CBO estimates, if the Secretary did not modify the program to ensure its actuarial soundness, the program would add to future federal budget deficits in a large and growing fashion beginning a few years beyond the 10-year budget window