1. Copyright © 2013 University of Minnesota. All Rights Reserved Long-Term Health Care Planning: Preserving Your Farm or Small Business Gary A. Hachfeld Extension Educator - Ag Business Management Triennial Conference Overland Park, KS. June 9-13, 2013

2. Copyright © 2013 University of Minnesota. All Rights Reserved Program Goals Introduce farm/ranch & small business owners & operators to the financial importance of long-term health care planning. Outline federal medical programs and how individuals qualify. Dispel the many misconceptions about protecting business assets using these federal programs. Farm/ranch & small business owners & operators develop & implement a long-term health care plan to protect their business assets.

3. Copyright © 2013 University of Minnesota. All Rights Reserved Delivery, Materials & Marketing Face-to-Face workshop setting - PowerPoint slides. Workbook: - PowerPoint slides. - Case study examples. - Internet resources. “Sponsorship Model” - Market to local business sponsors. - Sponsor pays U of MN a program fee. Sponsor selects date, time, location, recruits participants, pays all additional costs.

4. Copyright © 2013 University of Minnesota. All Rights Reserved Program Outline Topics discussed: - Long-term care issues, terms, costs. - Medicare & Medicare supplemental insurance. - Veterans long-term care programs. - Medicaid program: Asset assessment & eligibility examples. Income eligibility & examples. - Long-term care financing options. - Long-term care insurance.

5. Copyright © 2013 University of Minnesota. All Rights Reserved Evaluative Methodology Stage 1: End-of-Meeting evaluations: - Each participant is asked to complete a one page evaluation following each workshop: ♦ Focus on increased understanding of key educational points. ♦ Status of their personal long-term health care plan. Stage 2: Follow-up evaluation six months following each workshop: - Mailed to participants with return envelope: ♦ Focus on progress toward developing & implementing their long-term health care plan. ♦ Obstacles and challenges encountered.

6. Copyright © 2013 University of Minnesota. All Rights Reserved Participant Demographics 2012 - 2013 Programs delivered in Minnesota thus far. 110 total attendees 56 farm/ranch/small businesses. 19 local communities represented. 3 local program sponsors involved. Total number of workshops - 3. 70.8% had no long-term health care plan. Age range: 42 to 89 yrs., 94.5% over age 55. 57.3% male and 42.7% female.

7. Copyright © 2013 University of Minnesota. All Rights Reserved End-of-Meeting Evaluation Results 2012 - 2013

8. Participant’s Self-Reporting Whether Their Understanding of Educational Points Increased Due to Attending a Workshop (2012 – 2013)* * Used Likert Scale with 1 = “Strongly Disagree’ to 5 = “Strongly Agree” Educational Points Median Score Average Score Standard Deviation % Indicating “Strongly Agree” Or “Agree” N Understanding of the importance of having a long-term health care plan. 4 4.48 0.50 100.0% 65 Greater understanding of Medicare and what health costs the program covers. 4 4.37 0.49 100.0% 65 Greater understanding of Medicaid and what health care costs the program covers. 4 4.43 0.50 100.0% 65 Greater understanding of Medicaid qualifications requirements, spend- down provision and income rules. 4 4.40 0.49 100.0% 65 Greater understanding of long-term care insurance as a long-term health care planning tool. 4 4.38 0.49 100.0% 65

9. Copyright © 2013 University of Minnesota. All Rights Reserved Follow-up Evaluation Results 2012 - 2013

10. Number/Percentage of Participants Starting/Completing Long-Term Health Care Plan (2012 – 2013)* Year Item 2012 - 2013 Total Number of Individuals Returning Surveys Number/Percentage Starting the Long-Term Health Care Planning Process 19 (63.3%) 30 Number/Percentage of Those Starting Who Have Completed the Long-Term Health Care Planning Process 13 (73.7%) 30 Range in Self-Reported Net Worth Protected Due to Having a Plan in Place $300,000 to $10 million 30 * Number & Percentage of Those Returning Follow-Up Evaluations Only.

11. Copyright © 2013 University of Minnesota. All Rights Reserved Economic Impact Self-Reported by Participants

12. $29.7 Million Dollars Program Impact Based Upon Participant Self-Reported Net Worth Protected Based Upon Completing a Long-Term Health Care Plan

13. Copyright © 2013 University of Minnesota. All Rights Reserved Long-Term Care Insurance Plan Types

14. Copyright © 2013 University of Minnesota. All Rights Reserved Long-Term Care Insurance Plan Type Selected Standard Long-Term Care Insurance “Hybrid” Long-Term Care Insurance Self Insure Plan Participants Selecting Insurance by Type 12 (60.0%)3 (15.0%) 3 (25.0%)

15. Copyright © 2013 University of Minnesota. All Rights Reserved Cost – Benefit Analysis Total program cost = $10,917.76 Includes staff salary & benefits (prep, travel, presentation, & evaluation time), mileage expense, lodging expense and participant materials. Total program revenue = $1,500.00 Includes $1,500 sponsorship fees. Net program cost = $9,417.76.

16. Copyright © 2013 University of Minnesota. All Rights Reserved Cost – Benefit Analysis For every net dollar of program cost spent, we generated $3,153.61 in financial impact ! Rate of Return on Investment was equal to 315,261 %

17. Copyright © 2013 University of Minnesota. All Rights Reserved What Have We Learned? ◘ Is a universal issue regardless of business, location, age, etc. ◘ Program demand continues to grow. ◘ “Sponsorship Model” has strengthened our working relationships with local businesses leading to other opportunities plus enabling us to generate revenue. ◘ Works very well not having attorneys present material. ◘ Participants state the workbook is a valuable resource. ◘ Evaluative data shows participant behavioral change based upon knowledge increase of subject matter (outcomes). ◘ Evaluative data shows significant economic impact resulting from the program effort (impacts).

18. Copyright © 2013 University of Minnesota. All Rights Reserved Contact Information Gary A. Hachfeld Extension Educator Agricultural Business Management University of Minnesota Extension 507-389-6722 hachf002@umn.edu

19. Copyright © 2013 University of Minnesota. All Rights Reserved Questions ? ? ? Comments ! ! !