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Baker College Your New Group Long Term Care Benefit!

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Presentation on theme: "Baker College Your New Group Long Term Care Benefit!"— Presentation transcript:

1 Baker College Your New Group Long Term Care Benefit!

2 2  An estimated 10 million Americans currently need Long Term Care: That number is expected to double by 2030. 2  The probability that an employee will one day face a nursing home stay is greater than: ● the probability of disability ● the probability of premature death while employed 3 The need for LTC is extensive 20072030 in millions 20 15 10 5 Americans needing long term care 1 Georgetown University, Long-Term Care Financing Project, "National Spending for Long-term Care Fact Sheet,” January 2007 2 “Long-Term Care Financing: Are Americans Prepared?” Testimony by Senator Gordon H. Smith, 2006 committee chairman, before the U.S. Senate Special Committee on Aging, March 9, 2006. 3 Milliman, “True Group Long-Term Care Insight Long-Term Care and Employer Contributions,” March 2006.

3 3 The cost is enormous Savings from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods. 5 Daily rates for Private Nursing Home Care Daily rates for Assisted Living Hourly rates for Home Care National Avg: $183National Avg: $176National Avg: $26 Michigan: $218Michigan: $100Michigan: $17 Samples of cost of care 4 : 4 Unum Cost of Long Term Care Survey, September 2007. 5 U.S. Department of Commerce, Bureau of Economic Analysis News Release, “Personal Income and Outlays,” August 2007.  National Nursing Home annual average= $66,795  National Assisted Living Facility annual average= $64,240  National Home Care annual average (4 hrs/day)= $37,960

4 4  Health/Medical insurance ● will not pay for Long Term Care  Disability insurance ● no additional help for Long Term Care  Medicare (only over age 65) ● only in very limited situations ● full coverage for only 20 days 6  Medicaid ● will not help until financial assets are almost depleted  About 1/3 of those who use a nursing home have already depleted their assets upon admission.  Another 1/3 deplete their assets paying for care. 7 Other insurance doesn’t cover it About 15% are younger than 45 Ages of Unum GLTC claimants 42% are between 46 and 65 43% are older than age 65 6 Georgetown University, “Long-Term Care Financing Project: Fact Sheet,” updated February 2007. 7 American Association of Retired Persons (AARP) Public Policy Institute, "Medicaid and Long-Term Services and Supports for Older People Fact Sheet," February 2005.

5 5 In fact, Long Term Care insurance is the benefit most frequently requested by employees. 8 Reasons for the demand:  “Pension Insurance” ● Financial planners recommend it  “Sandwich generation” doesn’t want to burden their children ● They have experienced the toll of care- giving firsthand  Self-funding is almost impossible ● 56% of people between ages of 45 – 54 don’t think they can afford to finance their own long term care 9 LTC is in demand in the workplace 8 AON Consulting, “What’s Hot and What’s Not in Voluntary Benefits,” January 2006. 9 Wall Street Journal Online/Harris Interactive, “Personal Finance Poll of U.S. Adults,” February 2006.

6 6 What are the triggers for Long Term Care to pay?  Must lose 2 of 6 “Activities of Daily Living,” commonly referred to as ADLs, and/or:  Must be Cognitively Impaired (Alzheimer’s, Dementia, etc.)  Must satisfy a 90-day Elimination Period  Activities of Daily Living are defined as: ● Eating ● Bathing ● Dressing ● Toileting ● Continence ● Transferring

7 7 Loss of Activities of Daily Living (ADLs) Toileting Transferring Dressing Bathing Transferring Dressing Bathing Dressing Feeding Continence Toileting Transferring Bathing Dressing Least Impaired Most Impaired Includes Professional Home Care Home Care Professional Assisted Living Nursing Home Care

8 8 People prefer to:  Stay in their own communities  Receive care at home if possible  Choose their caregivers According to Unum sales figures:  Home care is being heavily utilized  More than 72% of claimants younger than 65 have received care at home 10 LTC insurance gives employees control 10 Unum internal data from in force block of nearly 1 million policyholders, 2007.

9 9 The Value of “Choice” Claims Distribution Query, June 2006, Unum inforce claims data * *

10 10 Claims trends for workers younger than 65 11 Long Term Care is not just for the elderly  Nearly 57% of submitted claims for Group LTC are for people younger than age 65  The average age within this group is 54  More than 15% of claimants are younger than 45 Claim trends for workers under age 65  The leading causes are: 1Cancer 2Trauma 3Stroke 4Neurological disease 11 Unum sales data, 2007.

11 11  Helps put your NEW Group Long Term Care benefit into perspective  Illustrates the costs associated with Long Term Care that are not seen ● Transportation, home maintenance, prescriptions, informal home care  Provides an understanding of the “choices” that are afforded to you as employees of Baker College Why are these statistics important?

12 12 $1,000 of a Monthly Benefit 3-Year Benefit Duration 100% Professional Home Care This equates to a bucket of $36,000 that can be used for Long Term Care needs Your NEW Group Long Term Care Benefit Baker College is providing you with the following:

13 13 Here’s how you can enhance your coverage  Monthly Benefits: Employees can elect $1,000 - $6,000 in benefits  Benefit Durations: 3-Years or 6-Years  Plan Designs: The “choice” of 4 Plans: ● Plan 1: Includes 100% Professional Home Care and Nursing Home Care ● Plan 2: Includes 5% Simple Inflation Protection; and 100% Professional Home Care ● Plan 3: Includes a 10-Year “Accelerated Payment Option” ● Plan 4: Includes the 10-Year “Accelerated Payment Option,” 5% Simple Inflation; and everything that is covered in Plans 1 & 2 Note: Monthly Benefits, Benefit Durations and Plan Designs are available to any/all family members. The only difference is, non-employees must provide “Evidence of Insurability.”

14 14 Employees customize their own plan Employee Choice $1,000$2,000$3,000$4,000$5,000$6,000 Monthly Benefit Amount Benefit Duration 3 Year 6 Year Plan Options Professional Home Care 5% Simple Inflation 10 Year APO 5% Simple Inflation & 10 Year APO Plan 1Plan 2Plan 3Plan 4 Employee Selects One Monthly Benefit Amount One Duration One Plan Option

15 15 Enhancement Example 1  Employee Age: 60 Years-Old  Monthly Benefit: $6,000  Plan Design: Plan 1, which includes “LTC Facility and Professional Home Care”  Benefit Duration: 3 Years  Cost per $1,000 of Benefit: $17.10/month  Multiply by “6” (for the $6,000/month Benefit): $102.60/month  Subtract what Baker College is providing for you ( only done when an employee modifies his/her plan ): $17.10/month  Your Payroll Deducted Premium per Month: $85.50

16 16 Enhancement Example 2  Spouse Age: 55 Years-Old  Monthly Benefit: $6,000  Plan Design: Plan 1, which includes “LTC Facility and Professional Home Care”  Benefit Duration: 3 Years Note: Spouse (and any other family member, must provide “Evidence of Insurability”)  Cost per $1,000 of Benefit: $12.10/month  Multiply by “6” (for the $6,000/month Benefit): $72.60/month  Your Payroll Deducted Premium per Month: $72.60  Total Monthly Premium for Employee and Spouse: $85.50 + $72.60 = $158.10

17 17 Employees: How to Enroll One Time Only Enrollment Period for GUARANTEED ISSUE Coverage: Important Enrollment Dates for EMPLOYEES:  Enrollment Begins: Monday, January 16 th  Enrollment Ends: Tuesday, January 31 st  Enrollment Website: Learn MoreCost Calculator Paperless Enrollment

18 18 Enrollment Site: Home Screen

19 19 Enrollment Site: Overview

20 20 Enrollment Site: Cost Calculator

21 21 Enrollment Site: Enrollment Documents

22 22 Family Members: How to Enroll  Enrollment Begins: Monday, January 16 th  Enrollment Website:  Important Notes: ● Family members MUST provide Evidence of Insurability when applying for coverage. ● Family members must mail their applications directly to Unum (address is included on forms)

23 23 Important Items to Remember… 1. Employee coverage is Guaranteed Issue! This is your ONE TIME ONLY opportunity to enhance your coverage without having to answer any medical questions! 2. Your coverage is Portable. You can take your plan with you if leave Baker College for any reason. 3. Indemnity product. You receive LTC benefits based upon what you elect; not what your incurred costs are (reimbursement). 4. Rates are locked-in at attained age. Rates do NOT increase as you get older! 5. Group Discounted Rates. Costs are typically less than what can find for a comparable plan on the individual market.

24 24 Questions?

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