Long Term Care

Once Again, Buyer Beware

2010-02-18T21:39:00Z

Is it ever a good idea to trick someone into doing something that is good for them? This question opens up the debate about the CLASS Act, or Community Living Assistance Services and Support Act, which is part of both the House and Senate bills on Health Care Reform.

Americans who are actively at work would automatically be signed up to participate in this voluntary program, unless they opt out. Payments ranging anywhere from $160 to $240 per month would be deducted from your paychecks, unless of you had signed a form saying you want to keep your money. Students and those who are poor would be able to enroll in the program for $5 per month, which means the actively-at-work population in the program would subsidize them. This sounds like Medicaid, which is already the largest payer of long-term care for the aging population and others needing chronic care; and it is already straining federal and state budgets.

Individuals would have to make the premium payments for five years before being able to make a claim. The premiums supposedly would remain the same over a person’s lifetime, unless the government had to increase premiums to keep the program solvent.

The benefits for this government sponsored long-term care plan would be approximately $50 per day after a person became cognitively impaired or needed help with two or three ‘activities of daily living,’ such as bathing, dressing, eating or other things you must be able to do for yourself to get through the day.

The plan would have no medical underwriting, so anyone could qualify for the coverage, regardless of their state of health. Some are concerned that very few healthy people would enroll, and those who do would be those at a higher risk of needing the care.

At first glance this may appear to be a good thing. However, even at the $160 per month, an annual premium would be $1,920. That’s pretty steep! At today’s cost, $50 would pay for about two-and-a-half hours of care. Who in their right mind would pay $160 to $240 per month for a benefit with a five year waiting period that would then pay $60.78 per day, which reflects the $50 per day benefit with a 5% compound annual increase.

A note to the wise, before enrolling in the program through an employer, educate yourself on what is available on the private market before moving forward. Long-term care doesn't have to be a complicated and unpleasant subject. Taking responsibility for your own health and welfare can help you avoid years of poverty or substandard care.

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

From Rhode Island to Taipei: Calls for Change in Long-term Care

2009-10-03T16:27:00Z

In general, people are reluctant to change. It’s been said that most people only make the decision to change when the pain of the status quo becomes worse than the pain associated with change.

The same can be said about governments and long-term care reform. For years, U.S. public policy has largely ignored the impending fiscal train wreck of an aging population that shows little appetite to privately fund its future long-term care needs. Instead, the government’s Medicaid program is the de facto long-term care funding mechanism for Americans who have either a small bank balance or a willingness to hide money to qualify.

If there’s one good thing that can be said about the current recession, it’s that it may lead us to rational Medicaid reform. At the very least, economic uncertainty is sharpening the debate about what services the taxpayers should be paying for, what those services will look like and who qualifies for government-provided services.

Before the recession caused tax receipts to fall precipitously, politicians could avoid and delay the topic of Medicaid reform. Now, with many states on the verge of bankruptcy, and Medicaid one of their largest line items, that’s no longer the case. Since Medicaid is funded by both states and the federal government, it’s getting attention at both levels of government.

One of the best examples of Medicaid reform is happening right now in the smallest state in the union: Rhode Island. The state was granted the first ever “global waiver” by the federal government in regards to its Medicaid program. What this means is that Rhode Island is allowed to revamp/reinvent the way that it delivers Medicaid benefits without having to ask permission of the Center Medicare and Medicaid Services (CMS). Stakeholders and politicians in “Little Rhodie” are just now figuring out what the future of Medicaid will be in the state. Like New Hampshire is to presidential elections, what happens in Rhode Island may have influence clear across the country as governments grapple with long-term care funding.

Lest you think the United States is alone in facing the financial burden of an aging population, the Taipei Times ran a letter in its July 20, 2009 edition titled “Programs that matter, not empty promises.” The paper described how Taiwan’s Cabinet Task Force on long-term care insurance recently held its first meeting to report preliminary results. Two suggestions were made: a national insurance plan and compulsory insurance for those older than 40.

Meanwhile, the U.S. Senate’s version of Health Care Reform includes the Class Act: a federal long-term care insurance plan designed to pay an average benefit of $50/day to people that have paid in premiums for at least five years.

Often overshadowed by the economy, health care reform and Iraq, long-term care financing may not be front page news. However, it’s showing up frequently in legislative briefings, agendas and bills. The economy may finally force the kind of reform that will make long-term care insurance as mainstream as Medicare supplements.

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

Premise vs. Promise: When an Assisted Living Facility Declares Bankruptcy

2009-09-11T21:39:00Z

Is it possible that planning for your long-term care could actually leave you in a more vulnerable position than if you had made no plans?

One of the ways to plan for future long-term care is to move into a continuing-care retirement community (CCRC). CCRCs offer a variety of living arrangements and support, including independent living, assisted living and skilled nursing care. The financial arrangements and amenities on site are designed to provide peace of mind to residents, and some new residents are motivated to move to a CCRC thinking it's the last move they will ever make.

Although the premise of a CCRC is relatively consistent across states and operators, the promise of a worry-free future is only as strong as the legal entity on the other side of the contract. That's a tough lesson being learned by the 200 or so residents of Covenant at South Hills, a CCRC community in Mt. Lebanon, Pennsylvania. Covenant is under Chapter 11 bankruptcy protection and attorneys are trying to work out a sale that would allow two bondholders to recoup the almost $50 million they say they are owed.

Covenant at South Hills is typical of the ‘flat price, no matter what care you need’ financial model. Residents pay a fee to move in, usually several hundred thousand dollars. Thereafter, they pay a monthly fee of several thousand dollars. A large percentage of the entrance fee usually is refunded when a resident leaves or dies. While living at Covenant, a resident pays the same monthly fee, whether or not they are receiving care. Another CCRC model is the ‘pay-as-you-go model,’ where care expenses are paid when incurred, above and beyond regular monthly fees. As reported in the May 17, 2009 issue of the Tribune-Review, Covenant had promised lifelong care; and with an average age of 87, the residents are hardly in a position to regroup and rebound from the negative implications of the bankruptcy.

Pouring salt in the wound, the CCRC was built using $59 million in tax-exempt bonds, and the sponsoring organization is a highly-respected international religious charity. Some residents thought that the religious charity would back up the promises being made. However, the charity was not legally guaranteeing the risk.

The Tribune-Review also reported only 74% of the apartments are full. When a CCRC built for 270 has only 200 residents, it's financially handicapped. The financial cushion that could be provided by an additional 70 residents is not there, and if a significant number of the 200 residents unexpectedly need more care sooner or for longer than anticipated, the financial model falters quickly.

This points to one of the flaws in trying to use a micro approach to long-term care risk as opposed to a macro approach. The ultimate micro-approach would be for your spouse or child to take care of you. That plan has obvious risks. Your spouse may predecease you. Your child may be unable or unwilling to provide proper care over months or years, while holding down a job and juggling other responsibilities.

Compare that to the millions of policies issued by long-term care insurance companies. Insurance companies benefit from a macro approach: the health of 200 people is irrelevant to insurance pricing. Medical underwriting, the process of deciding whether to enter a contract with the individual, is often much more stringent when done by an insurance company than a CCRC admissions employee.

When making long-term plans, it's prudent to consider who or what is legally behind the promise. Even in this economic downturn, insurance holding companies stand relatively unscathed compared to investment firms and banks. Meeting contractual promises for worst-case scenarios in the future is the bread-and-butter premise of insurance companies. It's their premise, and a promise on which policyholders can rely.

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

What’s The Right Season for Long-Term Care Planning?

2009-08-24T20:33:00Z

The days are growing shorter and we all know what that means: Fall is on the way. Clubs and associations resume meetings, television shows launch new seasons, kids go back to school and it’s time again to get serious.

Is this the best season to consider purchasing long-term care insurance? If you think you may want it at anytime in the future, now’s the best time.

It’s an especially good time if you have a birthday coming up in the next three months. Long-term care policy premiums are based on your age when you apply; it would be a shame to pay a higher rate for years simply because you delayed your application for a few weeks.

How much more would a policy cost if you wait until after your next birthday to apply? Although the exact answer varies depending on the insurance company, the policy design you select, your age and your health, you can expect to pay approximately 10% higher premium for each year that you delay purchasing equivalent coverage.

By equivalent coverage, here’s what I mean. Suppose you are looking at a policy with a $200 daily benefit and the policy includes 5% inflation protection. If you delayed the purchase for one year, you would then need to purchase a policy with a daily benefit of $210 to equal the benefit of the previous policy.

If you are getting the feeling that putting off buying long-term care insurance doesn’t make sense, you understand intuitively how insurance works.

While an insurance company looks at a variety of factors in pricing a policy, let’s focus on the most relevant factor: your current age relative to the typical claim age.

Actuaries calculate how many years you are likely to pay premiums before making a claim. Now suppose the typical age of claim is 82. If you purchase a policy at age 79, you will pay for three years before the insurance company is on the hook to start paying your policy benefit.

However, if you went on claim at age 82, but purchased your policy at age 49, you would have paid premiums for 33 years. It doesn’t take a rocket scientist to understand that the premium at age 49 can be significantly less, simply because the insurance company has many more years to cover their expenses, set up policy reserves and so on, until claim time.

Here’s the kicker: the 49-year-old who purchases a policy has coverage for 33 years. That policy can pay for long-term care, triggered by any accident or illness, for decades. And you have locked in coverage when young and healthy. As long as you pay your premiums, coverage can’t be cancelled.

Here’s kicker number two: Assuming the same claim age, although the 79-year-old will only pay for three years, he or she typically would pay no less than the 49-year-old when you take into account the time value of money, depending on the interest rate, regardless of their age when they purchased the insurance.

So when is the best time to buy long-term care insurance? Since you can’t save money by waiting, the best time is now. The cost only increases if you wait, and so does the likelihood that, like the ducks and geese of summer, your health goes south. Then you can’t get coverage at any price!

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

Say Uncle (Sam)!

2009-08-22T17:25:00Z

Are you relying on the federal government’s program to cover your living expenses in the event you become disabled?

Probably not, Social Security’s Disability Program is notorious for its long wait for benefits and its stringent qualification requirements. Even if you meet its definition of disability, benefits aren’t payable until the fifth full month after disability begins. The Question and Answer page on Disability Benefits states “It can take a long time to process an application for disability benefits (three to five months).”

Because Social Security Disability can’t be counted on for comprehensive income protection, employers often sponsor and sometimes pay for private disability coverage. Some self-employed people, and even some employees who have coverage at work, choose to purchase private individual disability policies to help replace their income if they were to become disabled. These plans, combined with social security disability program benefits, can provide peace of mind in case the unthinkable happens and you can no longer work.

Not to change the subject, but are you relying on the federal government’s program to provide you with a comfortable retirement income?

I hope not, since, as the government itself states, Social Security Retirement Income will replace only about 40% of your income if you have average earnings, and the “percentage is lower for people in the upper income brackets.” On the same web page, the program notes “You'll need to supplement your benefits with a pension, savings or investments.”

Let’s recap:

We cannot rely on government programs to provide for a comfortable quality of life if we become disabled, or when we retire.

So, why do many of us expect a government solution when it comes to long-term care?

We don’t solely rely on the government for disability protection or for retirement income, but ironically many of us do expect to rely on the government when we become disabled in retirement!

As of now, there is no federal government program financed by payroll deductions, like Social Security, that provides a long-term care benefit. The only federal program that covers any long-term care is Medicaid. You know Medicaid; it pays for the kind of care you least desire, such as nursing-home care, and requires that you be poor to qualify.

The Health Care Reform proposal currently making its way through the Senate includes a groundbreaking provision for a government long-term care program. Premiums would be paid for by workers. However, the coverage is designed to provide an average daily benefit of just $50 to allow people to bring services into their homes. This coverage would be available after you have paid premiums for five years.

The proposal making its way through the House of Representatives includes no such new program for a federal long-term care program.

From experience with Social Security disability and retirement income benefits, we know that even if the proposal were to become law, most of us wouldn’t want to count on it. We’d supplement it with private insurance and our own nest eggs.

Have you ever heard a baby boomer say that they are not going to worry about long-term care planning? That, because there are so many of us, the government will have to come up with a plan to fix the problem?

When you take a look at all the other solutions that government has offered us, there’s only one logical response: “Don’t count on it!”

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

Reduce your LTC Insurance Premiums

2009-08-14T03:55:00Z

How much you'll pay for long-term care insurance is based on three factors. Your age, when you apply, how much protection you want and your health when you apply. Where you live today and where you plan to retire also play a part.

But here is information that's most important for Bloomfield Hills, MI residents. Your long-term care insurance can be far more reasonable than you think.

Let me share a few ways people I work with significantly reduce the cost of long-term care insurance. Before I share, I thought the following statistic from the American Association for Long-Term Care Insurance was especially interesting. In 2008, individuals between the ages of 55 and 59 paid as little as $844-a-year for LTC insurance protection. The maximum paid by someone in this age range was $6,939.

So, how can one reduce the cost? Start by considering a policy that might protect a specific amount of your savings and assets. The coverage you buy today can increase in value over time. So, a policy that provides $115,000 of protection today can grow to $305,000 in 20 years. If you are married, some long-term care insurance policies allow one spouse to access the other spouse's benefit pool. That's an option well worth looking into.

Consider adding a deductible to your long-term care insurance policy. Most people have a deductible on their car insurance and their homeowner's policy. When it comes to long-term care insurance, adding a deductible will significantly reduce the cost and the majority of people select a 90-to-100 day period. The average savings will be about 20 percent annually.

Finally, know that costs vary significantly from one long-term care insurance company to another. I am a member of the industry's long-term care insurance association and they share enormous information. Once a year they undertake a Price Index Study and the costs for almost identical coverage can vary by as much as 100 percent depending on your age and marital status.

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

Tax-Advantaged Long-Term Care Insurance Provides Special Benefits Exclusively For Business Owners

2009-08-14T03:26:00Z

To encourage more Americans to plan for the potential risk of needing costly long-term care, the Federal government and a growing number of states now offer significant tax-saving incentives for the purchase of special tax-qualified long-term care insurance.

"The cost of long-term care coverage could be fully tax-deductible," explains Dorothy McMahon of McMahon and Associates Ltd., located in Bloomfield Hills, Michigan. "Most individuals are unaware of this fact and the significant savings opportunity it provides and some of the exclusive benefits offered to the small business owner."

Legislation passed in 1996 created generous incentives for business owners to purchase long-term care insurance for themselves, spouses as well as their key executives. As a result, according to the American Association for Long-Term Care Insurance, some eight million Americans now own this protection with some 400,000 new policies issued last year.

"The rules vary based on the type of business entity but in general, business owners can deduct 100 percent of insurance premium paid for employees. Owners can deduct up to 100 percent of their own premium. In addition, the law allows spouses to be insured under the company-plan, even if they are not employed. Most insurers today offer significant discounts when both husband and wife are protected," explains McMahon. "When you factor in the tax savings applied to both policies, it's almost like getting two people covered for the cost of one."

Businesses that are established as C-Corporations benefit today from full deductibility for owners and spouses, notes McMahon. The owner can offer tax-deductible long-term care insurance coverage to whomever they choose on a selective basis - even if that's merely the owner and his or her spouse, McMahon adds. This is truly one of the last remaining tax-advantaged benefits available especially for owners.

In most states, insurers offer paid-up options that allow the business owner to have their protection fully paid for upon reaching age 65 or after a pre-determined time period, say 10 years. This is an important advantage available to a business owner who wants to have their coverage paid-up fully before they retire or sell the business, adds McMahon. You're covered for life without having to write checks when you are retired.

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

Under Age 65? Need Health Insurance?

2009-07-28T22:34:00Z

Under Age 65? Need Health Insurance? We offer individual health insurance.

And you will want to talk with us about other insurance products such as: Life Insurance and Voluntary Benefits for Employees including: Disability Income Insurance, Life, Health, Short and Long Term Disability, Critical Illness Coverage, Accidental Death, Long-Term Care, Dental / Vision and Critical Illness insurance.

Additionally, McMahon and Associates is affiliated with a Property Casualty Insurance Agency that can fill all your Personal and Business insurance needs.

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

Getting your LTC Insurance claim paid

2009-05-07T15:33:00Z

The May 2, 2009 issue of Kiplinger's Personal Finance magazine includes an article on the topic of Long-Term Care claims (click here to read: Make Sure Your Insurer Pays Up).

It’s a decent piece of work, and as the author says, "getting a long-term-care claim approved is the easy part." Here I'd like to offer a few observations and pointers based on 20-plus years experience as a Long-Term Care Insurance professional.

Making a claim on your Long-Term Care Insurance (LTC) should be no more difficult or complicated than making a claim on a homeowners, auto or disability insurance and there are many things you can do at claim time to simplify and speed the process.

If you're just now buying LTC insurance, buy from a knowledgeable agent who cares about his or her clients. An agent can be a tremendous help at claim time. The agent should be intimately familiar with your policy and can often help you avoid miscommunications and other problems during what can be a highly emotional time.

At claim time, your first phone call should be to your agent. He or she can often guide you through the claims process and help eliminate needless frustration and delays.

Since many years typically pass between when a policy is purchased and when a claim is made, you likely would benefit from reviewing your policy, paying attention to these points:

Deductible: Review how the deductible, usually called an ‘elimination period’ is covered.
Licensing requirements: Pay attention to the caregiver’s licensing requirements to make sure you maximize the benefits from your policy.
Proof of licensing: Make sure your claim paperwork includes copies of any required proof of licensing, or the claim could be delayed. Call your claims representative with any questions to make certain your claim is not delayed due to insufficient documentation.

Also, pay attention to the process

Start a file: Dedicate a spiral bound notebook to the claim. Keep a record of any and all phone conversations with the claims representative, care coordinator and caregivers. Include date, time, who initiated call and who you spoke with. Keeping everything in one place will make it easier if there is a problem.
Send all claims forms via return receipt mail so you know when they have been received at the insurance company. Give the insurer several days to process the paperwork before you call and ask for a status. Proof of receipt is important in the event of a claims appeal, since your contract will state the number of days the insurer has to respond to your appeal (day one is the date they receive your paperwork to respond).
Keep your policy handy, not in a safe deposit box. Give a complete photocopy of your policy to a close relative or friend in case you are unable to find your policy at claim time.
Name at least one person in the third-party notification section of your application. That person will be notified if your policy is ever in danger of lapsing. Whether the danger is from an extended trip, an oversight, or because of a lapse in cognitive ability, this safeguard is designed to make sure your policy is in force at claim time! If you don't name someone during the application process, you can do it any time after the policy is issued.

A report by the National Association of Insurance Commissioners said the Long-Term Care insurance industry has no systemic issue in regards to claims payments. However, there are many things you can do to simplify and speed the process of making a claim.

Long-Term Care doesn't have to be a complicated and unpleasant subject. In fact, taking responsibility for your own health and welfare can help you avoid years of poverty or substandard care. Everyone must have a Long-Term Care plan in place that will fit their lifestyle and budget.

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

LTC Insurance Critical for Nest Eggs Cracked by Stock Drop

2009-03-24T02:41:00Z

It wasn't that long ago that wealthy people would brush off the idea of long-term care insurance assuming they could self insure. But the drop in the Dow Jones Industrial Average has shown many investors that they, and their retirement plans, are no longer invincible. If they weren't worried about outliving their money before, they may be worried now. Burden their financial picture with the cost of possible long-term care, and the worry escalates.

The S&P 500 is down 41% in the last year; that's a handy number for estimating the losses that stock market investors have sustained. Using this index, a stock portfolio worth $1 million a year ago is now worth less than $600,000. What was $2 million is now less $1.2 million; $10 million is now less than $6 million. Those are some scary numbers!

What's an investor to do?

One smart strategy is to leverage the dollars that are left by purchasing insurance. Instead of burdening a portfolio with having to be both big enough and liquid enough to self-insure, a policy can be purchased. Once a new policy is in place, the newly-insured investor has now dramatically shored up his or her financial situation if they need care. Though he or she may no longer be in a position to write large personal checks for long-term care, he has bought, for pennies on the dollar, an LTC insurance policy that will write the checks on his behalf. Investors can find some consolation when they realize that, once the financial risk of needing long-term care is shifted to an insurance company, the need to recoup recent stock market losses is mitigated.

The LTC insurance solution is superior to self-insuring in several ways. The policy can be written to include a guaranteed inflation benefit (such as 5% compound) that is independent of market forces. The insurance policy premium can sometimes be tax-deductible and the proceeds are almost always tax-free. Compare this to the cost of tapping into a qualified retirement plan to pay for long-term care, or the market risk inherent if the self-insurer had to sell either real property or stocks.

The losses that investors have sustained in the stock market should serve as a wake-up call. Even wealthy individuals can be vulnerable if they are dependent on stock market values to pay for their long-term care. Now more than ever, it makes sense for even wealthy people to purchase long-term care insurance.

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

November is Long-Term Care Awareness monthLTC insurance employee benefits long term care insurance LTC

2008-11-14T02:29:00Z

The American Association for Long-Term Care Insurance (AALTCI), the national trade organization for professionals dedicated to serving the Long-Term Care planning needs of individuals, has established November as Long-Term Care Awareness Month, an expansion from the highly successful Awareness Week conducted last year.

“The awareness campaign which we commenced in 2001 continues to grow and involve more leading national organizations and governmental agencies,” explained Jesse Slome, the Association’s executive director. “Two years ago, the U.S. Congress issued a Resolution (H.R. 133) in support of Long-Term Care Awareness Week, and several Governors declared the week in their states. Michigan was one of them.

Across the country, insurance professionals conducted awareness programs reaching out to one million individuals. “By expanding the campaign to a full month, there will be more time to implement awareness and educational programs,” Slome notes. “The aging of 76 million boomers makes it more relevant than ever to create awareness of the risk and the importance of planning. “Eight million Americans already own Long-Term Care insurance and the average age of purchasers today is 57 (Source: 2008 LTCI Sourcebook published by the American Association for Long-Term Care Insurance). “Clearly we have an enormous opportunity to reach millions of those who have not started to plan," Slome adds.

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

Today 40% of caregivers are men

2008-10-04T13:44:00Z

Straight Talk About Long-Term Care

Long-Term Care is the type of assistance that a person of any age needs when that person is unable to perform basic activities such as bathing, dressing, eating, toileting, continence or transferring. It is also the best option for a person who needs care because of Alzheimer’s disease or any other form of memory loss.

Long-Term Care is NOT nursing home care for the 85 year old. It’s not a place, it is an event!

Some Food For Thought:

Today, 43% of people receiving Long-Term Care are not seniors but people between the ages of 18 and 64.
Today 40% of all caregivers are male.
Today 52% of all working males are caregivers for a person over age 18.

Long-Term Care Insurance will help you to:

Protect your retirement savings. Do you want to pay for care with money from your portfolio?
Protect your 401K
Maintain independence and allow choice as to where you or a family member will receive care.
Avoid physical, financial and emotional stress, whether you become the caregiver or the care recipient
Pay for better care for a longer period.

Purchasing Long-Term Care Insurance is a decision to keep yourself (or a loved one) out of a nursing home and from moving in with your kids.

Think of Long-Term Care Insurance as a good pair of shoes. You purchase them for protection so you can go the distance in comfort and style. Without them you are going nowhere.

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

You are invited - October 16LTC insurance employee benefits long term care insurance LTC

2008-08-28T02:06:00Z

Jewish Family Service of Metropolitan Detroit

presents:

The Changing Face of Long Term Care
Thursday, October 16, 2008
1:00 - 4:00 P.M.

Registration: 12:30 - 1:00 P.M.

Jewish Community Center of Metropolitan Detroit
D. Dan and Betty Kahn Building
Eugene and Marcia Applebaum
Jewish Community Campus
6600 West Bloomfield, MI 48322

Sponsored by
McMahon and Associates Ltd.
www.buyltcinsurancenow.com

For Information Contact:
Stephanie Appel LMSW
(248) 592-2667

Click here to download brochure

Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.

A silent workplace epidemic

2008-08-21T01:43:00Z

Just about every newspaper or magazine we pick up these days has information about baby boomers and their aging parents.

We as a society are aging. For those boomers who are employed, I suggest that when you go to your place of business the next time, look around. How many of your co-workers are dealing with a caregiving situation? Have they discussed with anyone exactly what they are experiencing? Does the employer know what they are dealing with?

Whether they talk about or not, they are suffering from the silent epidemic that is taking its toll on both employers and employees, affecting all of them physically, emotionally and financially. Emotional stress shows its face as indecision, apathy, anger and depression. Physical stress shows itself as sleeplessness, fatigue, stomach disorders, anxiety and inappropriate laughing and crying. How can an employer not notice? Family caregivers account for 73% of early departures and late arrivals in the workplace and time off.

Other ways family caregiving can affect work are long and frequent personal telephone calls, low morale, numerous mistakes and conflicts with co-workers. On average, 40% of family caregivers take off an average of 17 unpaid days per year due to caregiving.

More than 60% of individuals who are working full or part time are caregivers. They dedicate an average of 18 hours per week to provide care for older persons and even more than that when the person has more than one disability. Caregiving is a very well kept secret. People are fearful that their job will be in jeopardy if they discuss their situation openly. They are fearful of a demotion, of not being considered for a promotion and fearful of even losing the job. According to a Met Life study, working caregivers lose an average of $659,139 during their career in terms of social security, pension and wages lost.

Caregiving is having a negative impact in the workplace and 40% of employers say they have no plan in place to assist caregivers. Another Met Life study indicates that the average working caregiver costs a business $2,110 annually in productivity and that 42% of America’s work force provide some form of care. For a business with 100 employees, of which 42 are caregivers, more than $88,000 is lost annually. The caregiving cost to employers is estimated to be as high as $33.6 billion per year and will only increase as the population continues to age. It’s time that both employers and employees become proactive in dealing with the many issues of caregiving. Working together, possibly forming a support group so that employees can exchange their ideas and feelings in a safe and secure environment could be a good first step.

Dorothy McMahon, president of McMahon and Associates, is a Long-Term Care Insurance Consultant in Bloomfield Hills, MI. Reach her at (248) 844-9787 or LTCINSUSA@aol.com.

Announcement!
Innovative Employer Caregiving Programs Broadcast
Wednesday, September 17, 2008
1:00–2:00 P.M. (Eastern Time)

How to Register:
To register and find out more information on the broadcast (how/where it can be viewed,
and how to access the live Q & A) please go to www.blsmeetings.net/caregivers.
If you have any questions, please email us at caregivers@cms.hhs.gov

Connections

2008-06-26T19:28:00Z

Your brain has become a sieve.
Words I speak sift through it.
‘It’s time to eat, I say.
‘Come to the table.’
You look toward the sound of my voice…
Unknowing, unthinking, unmoving.

Your eyes are still blue,
Your mouth opens and closes,
Your body is whole,
But – your mind is a sieve.
Only a clump of childhood memories cling within.

Neurotransmitters fail,
Leaving brain cells unconnected’ the doctor has explained
‘Neurofibrillary tangles, neuritic plaques,
Atrophied cells,’ were words used
To mask the fact
That your brain has become a sieve.

I try again. Placing my face close to yours,
Slowly, clearly I send the words to you,
‘Come to lunch’.
Once again these words sift through.

Resorting to the only language left between us,
My arms reach out for you, enfold you.
Your body does not forget.
Your arms remember.
They respond with a desperate embrace,
And you follow me.

~ Betty Wiley
April 6, 1991

After serving as a public school teacher, Betty Wiley cared for her husband Lawrence Wiley for eight years before he died of Alzheimer's disease. Lawrence was a veteran of World War II and a corporate attorney in western Michigan before early retirement was thrust upon him due to his illness. The copyright for "Connections" is owned by the estate of Betty Wiley, and the poem has been published with their permission.

Getting on the same page - defining our terms

2008-04-01T01:02:00Z

Whether you are shopping for a car, a vacuum cleaner or an insurance policy, it helps to be an educated consumer. To help us get on the same page, you may find it useful to print out this page.

Long-Term Care

What you require when you can no longer take care of yourself due to a prolonged or chronic illness or injury. This care may include help with “activities of daily living,” such as bathing, dressing, eating, toileting, continence or transferring or it can be skilled nursing care.

Continuum of care

Long-Term Care can be received in a variety of locations, including: home, an assisted living facility, an adult foster care home, a home for the aged, an Alzheimer's facility, an adult day care center, hospice care, respite care, nursing home or a continuing care requirement community.

Caregiver

Skilled caregivers include RNs, LPNs and LVNs.

Intermediate and custodial caregivers include home health aids.

Basic caregivers are family members or friends.

The definition of Long-Term Care Insurance

Long-Term Care insurance is an insurance policy or rider designed to provide coverage on an expense incurred (reimbursement) or indemnity basis for one or more necessary or medically necessary diagnostic, preventative, therapeutic, rehabilitative, maintenance or personal care services provided in a setting other than an acute care unit of a hospital. Long-Term Care insurance does NOT require a prior hospital stay before benefits are paid and all policies that are sold today MUST, by law, pay benefits to patients for Alzheimer's disease and dementia.

Home health care

Services received in the home can be health care or personal care services through a home care agency, family member or friend. These services can be medical or non-medical and can include assistance with shopping, meals and companion care. Home health care can be a cost effective choice, and is most peoples' first choice for care.

Assisted living

Assisted Living offers an alternative to nursing home care. Accommodations for Assisted Living are typically an apartment with private bath and kitchenette for individuals or couples, one or both of whom may need help with activities of daily living. Residents are able to furnish and decorate the apartment to their liking and some facilities even allow pets. Residents in these facilities choose to remain independent as long as possible to protect their families from the burden of care giving. This arrangement maximizes the independence and dignity of the individual and their family. These residential care facilities have become extremely desirable over the past few years.

Assisted living residences may have as many as three of four levels of care, and services may include two or three meals per day served in a common dining room, assistance with activities of daily living, housekeeping services and help with ambulating. Medication is dispensed as needed, or medication reminders, and exercise programs are available. There is twenty-four hour security and a staff on call at all times. Daily room and board fees include laundry, utilities and social and recreational services as well as transportation and housekeeping services.

Assisted living facilities can be free standing or part of independent living situations, apartment complexes or included in a continuum of care center in a senior community or nursing home. Costs vary based on location, and are about 75% of the cost of a nursing home.

Who should consider Long-Term Care insurance

Anyone who intends to get older. Go ahead and laugh, but I am not joking. Intelligent, responsible people who plan ahead realize that accidents and illness will happen to younger people as well as the aged. We all need to plan for Long-Term health care, just as we need to plan for the possibility of becoming disabled during our working years. When we are disabled, our income stops but we still need to pay the mortgage or rent, and the same goes for utility and car payments. Disability income insurance provides the income to pay for these expenses. Long-Term Care insurance pays for the care, if we need it, for an extended period. Our health insurance pays the deductibles and co-pays and covers the cost of prescription medications and hospital and doctor bills.

Those who are under age 59 and a half who need Long-Term health care and do not have Long-Term Care insurance will have to draw from their savings, 401k or IRA money to pay for care. Not only will they have to pay taxes on this money when it is withdrawn, but they will also be forced to pay a 10% penalty for early withdrawal. People requiring Long-Term Care who don't have Long-Term Care insurance could lose huge amounts of money if they have not planned ahead.

Younger people should consider Long-Term Care insurance to guarantee their insurability. If we are not insured and our health declines, as is practically inevitable as we age, we could be excluded from purchasing Long-Term Care insurance.

Dorothy McMahon, president of McMahon and Associates, is a Long-Term Care Insurance Consultant in Bloomfield Hills, MI. Reach her at (248) 844-9787 or LTCINSUSA@aol.com.

How important is Long-Term Care Insurance to the Federal Government?

2008-03-16T02:34:00Z

In March 2003, the U. S. Office of Personnel Management launched its early enrollment opportunity to make Long-Term Care insurance available to its more than 20 million employees. There was a multi-million dollar educational and marketing campaign that was paid for with your tax dollars to encourage federal employees to enroll for this important employee benefit, which was made available to all federal government employees, retirees, their spouses, adult children and stepchildren, parents, parents in law, stepparents, retirees and deferred annuitants. Metropolitan Life and John Hancock, two giants in the insurance world, then formed Long-Term Care Partners LLC, a jointly owned entity devoted exclusively to operating the Federal Long-Term Care Insurance Program.

You may be thinking, ‘what does this have to do with me? Why should I care about benefits that Federal employees will be receiving?’ The message is clear: Our Federal Government believes in and is endorsing Long-Term Care insurance. The national average cost of Long-Term Care today is $35,000 per year for home healthcare, and that’s when there is a very strong family support system to help with care giving. The care in a facility today exceeds $75,000. By the year 2030, the national average cost of care will be $82,000 for home health care and more than $200,000 per year for care in a facility.

It’s time each of us addresses our financial responsibilities and take a hard look at the high probability of needing Long-Term health care and deal with it.

Seven out of every ten Americans over the age of 65 will need Long-Term health care at some point in their lifetime and 43% of all Americans receiving Long-Term Care today are under the age of 65. Everyone needs to plan for their future and that of their family members. Those who are not facing the very real possibility of Long-Term health care are courting disaster with their entire family’s economic livelihood.

Talk with your peers tomorrow and ask the following questions:

Who is or has been a caregiver for a family member or friend?
How has it affected your family life physically, emotionally, and financially?
How has the caregiver had to re-arrange their own life to accommodate the many affected members of their family?

Of course, there is no question that as a caregiver, we would do everything possible to help the situation, as any of us would, but how much easier would it be if the patient had Long-Term Care Insurance?

Long-Term Care Insurance can transfer 90% or more of the financial risk of a Long-Term health care situation to a financially sound insurance company, relieving you of the financial burden of care giving. Naturally, when relieved of the financial and the physical burden of care giving by professionally trained caregivers or nurses, it becomes so very much easier to focus on what matters most to us when faced with emotional challenges: spending quality time with our disabled loved one.

If your employer is not making Long-Term Care insurance available to employees, then you must accept personal responsibility. Long-Term Care doesn't have to be a complicated and unpleasant subject. In fact, taking responsibility for your own health and welfare can help you avoid years of poverty or substandard care. Everyone must have a Long-Term Care plan in place that will fit her lifestyle and budget.

Dorothy McMahon, president of McMahon and Associates, is a Long-Term Care Insurance Consultant in Bloomfield Hills, MI. Reach her at (248) 844-9787 or LTCINSUSA@aol.com.

Alzheimer's disease, long term

2008-02-09T17:12:00Z

A diagnosis of Alzheimer's disease is devastating not just for an individual; it can also be a diagnosis of financial and emotional ruin for the entire family.

Alzheimer's disease is not a normal part of aging. It is a disorder of the brain's nerve cells that impairs memory, thinking, and behavior and leads ultimately to death. The impact of Alzheimer's disease on our health care system makes it one of our nation's greatest medical, social and economic challenges.

Alzheimer's disease is progressive and degenerative and there is no cure! Sometimes it progresses slowly and gradually. Sometimes it moves very quickly. Life expectancy after diagnosis can be anywhere from eight to 20 years and it is estimated that 4.5 million Americans have Alzheimer's disease. The number has more than doubled since 1980 and the number will continue to grow. By 2050 the number of individuals with Alzheimer's disease could range from 11.3 million to 16 million.

One in 10 individuals over age 65 and almost 50% of those over age 85 are affected. A rare, inherited form of Alzheimer's can strike individuals as early as their 30s and 40s. Research has shown that those who have a parent, brother or sister, or child with Alzheimer's disease are more likely to develop the disease. The risk increases if more than one family member has the illness. Heredity, environmental factors or both can play a role when Alzheimer's disease tends to run in the family.

Annual costs of caring for those with Alzheimer's disease are approximately $100 billion and the cost to American business alone is $61 billion. Of this figure $24.6 billion pays for care of the Alzheimer's disease patient, with $36.5 billion covering costs related to the caregivers. This cost includes lost productivity, absenteeism and employee replacement.

More than seven out of 10 people with Alzheimer's disease live at home, where almost 75% of their care is provided by family and friends. A devoted caregiver will take care of their loved one as much and as long as they can, regrettably, at tremendous cost to their own health. The symptoms of stress will become evident: denial, anger, social withdrawal, anxiety, depression, exhaustion, sleeplessness, irritability and lack of concentration. As a direct result, the caregiver becomes susceptible to heart attack, stroke, and serious emotional disorders.

As a society we are not prepared to care for our aging population and as responsible citizens we must begin planning, each within our own family, for the eventual need for long-term health care.

Dorothy McMahon is a Long-Term Care Insurance Consultant. Reach her at (248) 844-9787 or LTCINSUSA@aol.com.

NEW! Buy your Blue Cross and Blue Shield Health Insurance and individual Health Savings Accounts online! These are becoming very popular, especially now that employee benefits are beginning to disappear. Click here and buy online now: McMahon and Associates Coverage for One.

Diabetes, long term

2008-02-05T02:15:00Z

Nearly 18.2 million Americans have diabetes and one third of them, about 5.2 million, are not aware they have it. Diabetes affects one in five Americans age 65 and older and the aging of the population, along with the obesity epidemic, will only intensify the impact of this deadly and debilitating disease.

Some of the factors that increase the risk of diabetes are age, ethnicity, obesity, lack of physical activity, family history, hypertension and cholesterol. Diabetes is associated with serious complications of the heart and circulation, leading to coronary artery disease, heart attack and stroke, as well as heart failure.

Neuropathy, another complication, affects nerve sensation. It begins in the fingers and toes and moves up the arms and legs. The symptoms are tingling, weakness, burning sensations and loss of the sense of warm and cold, numbness and deep pain. Between 20% and 40% of older diabetics have neuropathy, peripheral vascular disease or both, putting them at increased risk for foot complications, such as ulcerated or infected feet or loss of limb.

Diabetes can cause retinopathy and eye complications and accounts for 12,000 to 24,000 of new cases of blindness annually. Studies also indicate that patients with type-2 diabetes face a higher than average risk of developing dementia, as well as problems with attention and memory.

People with diabetes face a higher risk for the flu and pneumonia; it doubles the risk of depression, reduces the bone quality and increases the risk of hearing loss and fatty liver disease. Obese women with type-2 diabetes face a higher risk of uterine cancer and both men and women with diabetes seem to have a higher risk of colon and rectal cancer.

When you think in terms of all of the disease and illness associated with diabetes, you soon will realize that diabetics are more likely to be dependent on caregivers for basic daily tasks, such as bathing, dressing, eating, toileting, continence and transferring.

And that's not the worst of it. More than 80% of older Americans are living with diabetes or other chronic disease, and of those half suffer from more than one debilitating condition. About 22 million American families, almost one in every four, are involved in caring for someone age 50 or older, and that number is expected to rise to 39 million by 2008. Plus, older caregivers have a 63% higher death rate than persons who are not caregivers.

Today you can't pick up a newspaper or magazine without reading about cuts in Medicare and Medicaid and increases in the cost of health care. With rising trade and budget deficits, and the looming threat of a recession, this society cannot afford to give its members the care they need and deserve, regardless of age. The message coming from Washington is "personal responsibility." Government programs designed to help those truly in need should be kept intact, but they are simply inadequate to the rising demand.

If you have researched Long-Term Care insurance and have decided to take a pass, it is now time to reconsider. The window of opportunity is closing, both from an insurability and cost perspective. If you have a family history of diabetes or you have already been diagnosed with diabetes or any chronic illness, now is the time to re-visit Long-Term Care insurance. Do not assume that you are not insurable. Remember, patient power comes from the ability to pay privately.

Dorothy McMahon is a Long-Term Care Insurance Consultant. Reach her at (248) 844-9787 or LTCINSUSA@aol.com.

NEW! Buy your Blue Cross and Blue Shield Health Insurance and individual Health Savings Accounts online! These are becoming very popular, especially now that employee benefits are beginning to disappear. Click here and buy online now: McMahon and Associates Coverage for One.

In sickness and in health

2008-02-02T05:00:00Z

"A serious illness is marriage's unspoken fear. The chances of a couple staying healthy together and dying at the same time are Las Vegas odds. Life is a dance you want to finish on the same beat."
~ Erma Bombeck

Erma was absolutely right, and she was the first to stumble in her marriage. She died at age 69 after an extended illness and complications from a kidney transplant.

It is a risk most of us choose to ignore, but Long-Term Care is one of the four major financial risks all of us face. Those risks are home fires, auto accidents, short-term medical care and Long-Term Health Care. The odds of our home burning down are 1 in 1,200, and the deductible is typically $500 to $1,000. The odds of having an auto accident are 1 in 240, and this deductible is typically $250 to $500. The odds of needing short-term medical care are about 1 in 5, and the deductible for medical care could be anywhere from $100 to $1,000.

Today the odds of a person over the age of 65 needing health care for an extended period of time, either at home or in a facility, are 57%, and seven out of every ten couples can expect at least one partner to enter a nursing home after age 65. But a survey conducted in the year 2000 says that two-thirds of Americans say they could not afford to pay for more than two years of care at a cost of $54,000 per year. In Michigan, that cost is now $74,000 per year. We all think, "It won't happen to me," but the shocking reality is that more than half of us will need Long-Term Care, either in our homes or in a facility, for a duration of two and a half years.

There are only three ways to cover the financial exposure of Long-Term Health Care.

If you are wealthy you can self-insure.
If you are impoverished, you will qualify for Medicaid and the government may pay for your care.
A third choice is to transfer the risk to a highly rated financially sound insurance company.

For married couples, qualifying for Medicaid can be devastating for the spouse who is still at home, known as the community spouse. That person is left with little to survive on while trying to make sure the sick spouse gets necessary care. This situation is financially, physically and emotionally draining.

Why would anyone want to risk hundreds of thousands of dollars for care when it is possible to purchase insurance for only a fraction of that amount? The alternative to paying $74,000 per year is to pay insurance premiums of about $1,500 to $2,000 per year. Those who say they cannot afford those premiums may want to think again: it beats the alternative. Above and beyond the risk of asset loss is the inability to access top quality care at the appropriate level.

Long-Term Care can be received in one or a combination of different settings including your own home, an assisted living facility, hospice care center, Alzheimer's facility, a home for the aged, or foster care. Care could also be given by a licensed home health care provider in an adult day care center, and may include respite care. These types of care would be provided as professional or personal care.

Long-Term Care and nursing home are not synonymous. Today's Long-Term Care policies are actually designed to keep us out of a nursing home and a nursing home is always the last choice. The average duration of Home-Health Care is 4.5 years and any level of care you could possibly need can be received in your own home. Let's be at home with our families! That's is the beauty of Long-Term Care insurance.

Dorothy McMahon is a Long-Term Care Insurance Consultant. Reach her at (248) 844-9787 or LTCINSUSA@aol.com.