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Critical Conversations about LongTerm Care

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Findings of an AARP study Fall 2004. 1,146 respondents over age 60. Can We Talk? ... American Association of Retired Persons. ( January 2005) ... – PowerPoint PPT presentation

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Title: Critical Conversations about LongTerm Care


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What is involved in longterm care planning?
  • Plan
  • Act
  • Evaluate

3
Reasons some people say why they were not
prepared for later life
  • I never expected to live this long.
  • We didnt think it would turn out this way.
  • We planned for a healthy retirement.

4
Financing Longterm Care Dilemmas and Decisions
  • Major gap in financial planning throughout life
  • Gap in laterlife financial security
  • Few of us have done any planning
  • Wont admit we might be affected personally

5
Financing Longterm CareDilemmas and Decisions
  • We think we know more than we do!
  • Gaps in knowledge make planning for longterm
    care tough!

6
Financing Longterm Care
  • Recognize your risk
  • Understand costs and implications
  • Sort out expectations and goals
  • Understand financing alternatives
  • Take action now

7
Longterm Care
  • Help with daily living activities and remaining
    independent
  • Wide range of personal, social and medical
    services
  • Provided in a variety of settings

8
Most who need longterm care
  • Live in their own homes
  • Receive unpaid caregiving from family/friends
  • Overestimate the chance of needing nursing home
    stay
  • Underestimate need for inhome and community
    services

9
Whos at risk?
  • 57 percent over age 65
  • 40 percent below 65 years of age
  • 3 percent are children

10
Whos most at risk?
  • Individuals 85 years and older
  • Individuals with chronic health problems
  • Individuals who lack social support and unpaid
    caregivers
  • Women

11
Prevalence of Longterm 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

12
What are the risks?
13
Potential Costs Underestimated
  • In-home care
  • Degree of need and health status
  • Type of service used
  • Visiting nurse 100 per visit (Kiplingers,
    2004)
  • Home-health aide 15 or more/hour (Kiplingers,
    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)

14
Sort Out Laterlife Financial Goals and
Expectations
  • Multiple/competing goals behind our decisions
  • Make goals known
  • Goals provide direction
  • Goals can be prioritized

15
If I would need longterm 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

16
Oklahoma Longterm Care Survey
  • Findings of an AARP study Fall 2004
  • 1,146 respondents over age 60

17
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

18
Understand Financing Alternatives and Consequences
  • No one financial answer
  • Laterlife goals should influence which
    alternatives are most appropriate
  • Consider a combination of alternatives

19
Who does
pay for longterm care?
  • Income and life savings of elders and family
    members
  • Sell home and use equity
  • Unpaid family caregivers provide majority of
    longterm care

20
Who pays for longterm care?
  • Medical Assistance (Medicaid) is a critical
    safety net

21
Who pays for longterm care?
22
Who pays for longterm care?
  • Longterm care insurance will pay
  • Longterm care insurance is NOT for everyone

23
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

24
References
  • American Association of Retired Persons. (January
    2005). Oklahoma longterm care A survey of AARP
    members. Available from www.aarp.org
  • Consumer Reports. (November 2003). Do you need
    longterm care insurance?, 68(7), 20-24.
  • Kiplingers 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 longterm
    care A resource for families. Available from
    www.financinglongtermcare.umn.edu
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