LTCG Long Term Care Group, Inc Helping People Plan for Long Term Care Needs Presented by Eileen J. Tell Senior Vice President 6 October 2005

LTCG Long Term Care Group, Inc Overview Review SHIP national training program Summarize research on LTC planning knowledge, attitudes and behavior Counselor role in helping people plan 1

LTCG Long Term Care Group, Inc Objectives of the National Training Help SHIPs respond to consumer interest from the “Own Your Future” initiative Help them motivate consumer LTC planning Expand knowledge of private LTC finance options Provide references and resource material Video of training session Training materials on interactive CD Rom for self-learning or classroom training Found at 2

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LTCG Long Term Care Group, Inc Role of SHIPs in Awareness Campaign All states received training Pilot states received additional funding for staffing, resources, outreach to complement campaign Helped distribute over 3,000 Planning Kits through individual and community meetings SHIPs saw small but diverse consumer response 4

LTCG Long Term Care Group, Inc Motivating LTC Planning Summarize current state of awareness Identify barriers and motivators for planning How can counselors help Tools and Resources 5

LTCG Long Term Care Group, Inc What “Planning” For LTC Means Financial Care options Lifestyle and living arrangements Home modification Legal issues 6

LTCG Long Term Care Group, Inc Components of Planning Awareness –What are the needs to be planned for –Value of planning –How to plan Action –Planning behaviors Both are critical 7

LTCG Long Term Care Group, Inc Public Attitudes on LTC Many people don’t know the facts Denial and misinformation Still, people worried about paying for care and finding care People aware of value of planning, but still are not doing it 8

LTCG Long Term Care Group, Inc Who Will Pay for LTC? (Source: General population surveys, HIAA, LTCG and others) 9

LTCG Long Term Care Group, Inc Worry about Paying for and Finding Care Retirees only. Source: General population surveys, HIAA, LTCG and others. 10

LTCG Long Term Care Group, Inc Importance of LTC Experience People with LTC experience have more accurate information about risks, costs and who pays People with LTC experience more likely to “do something” about future needs Women often have more LTC experience as caregivers. Men express more “denial” than women. 11

LTCG Long Term Care Group, Inc Importance of LTC Experience (Percent buying LTC insurance) 12

LTCG Long Term Care Group, Inc LTC Knowledge & Attitudes (Source: LTCG, HIAA, AARP and Ohio Teachers surveys) 13

LTCG Long Term Care Group, Inc Motivation Behind Planning (Source: HIAA and LTCG) 14

LTCG Long Term Care Group, Inc People Acknowledge Value of Planning Planning ahead….. Means more control over choices --21% strongly agree --66% agree Better protects family --19% strongly agree --69% agree Makes it easier to get care at home --18% strongly agree --68% agree 15

LTCG Long Term Care Group, Inc But Most Don’t Plan Over half say they’ll “deal with it when they get there.” 64% have seen or heard something about LTC in the media. But only 5% of them say they have done anything as a result. About 20% have consulted agent or financial planner. Less than 20% have even talked with their family about these issues. Less than 20% have done any internet research on LTC. 16

LTCG Long Term Care Group, Inc Why Don’t People Plan? Lack awareness of risks and costs Denial –Do not want to think about needing LTC Hard to talk about as a family –Raises issues of guilt, anxiety, fear of dependence Fatalistic –Hard to plan when you envision barriers you do not know how to overcome 17

LTCG Long Term Care Group, Inc Why Don’t People Plan? (continued) Competing “planning” priorities (e.g., retirement, college, immediate health needs) Need to understand the benefits of planning Need to know options Need help understanding how to plan 18

LTCG Long Term Care Group, Inc Awareness of LTC Options Make no plans -- hope it doesn’t happen Rely on family The “Dr. Kevorkian” response Pay on your own or rely on Medicaid Awareness of LTC insurance as an option increasing From 38% in 1995 to 63% in 1999 Knowledge of reverse mortgages improving but misperceptions 19

LTCG Long Term Care Group, Inc What Motivates Planning? LTC family experience More “planning” among married, well educated, middle income or higher Attitudes more important than demographics Accurate knowledge of risks, costs, and who pays Acknowledge “advantages” of planning Engage in other planning and “saving” activities (e.g., IRAs, annuities, talk with financial planner) 20

LTCG Long Term Care Group, Inc Influencing Behavior Change Deliver key messages: It can happen to you….You’re not covered….. Important to plan...LTC needs are best met when they are planned for Make it personal, but not scary Leverage affinity – information from a trusted, objective source Repeat messages and use varied communications It takes TIME! More interpersonal communication is best 21

LTCG Long Term Care Group, Inc What Can You Do? Tell people the advantages of planning Broaden thinking about the concept of “planning” Inform them of risks, costs, and who pays Introduce them to planning options & success stories Direct them to websites and publications to learn more about LTC and planning options 22

LTCG Long Term Care Group, Inc What Can You Do? (continued) Remind people to be wary of media coverage –Tends to focus on the “horror stories” and not the “success stories” Easy ways to start –Ask them to talk about LTC experiences of people they know –Talk to family & friends –Make a list of what is important to you, if you ever do need LTC –Take the LTC Planning IQ Test –Direct them to “real stories” 23

LTCG Long Term Care Group, Inc What Can You Do? (continued) Acknowledge the difficulties (emotional and logistical) Reward any appropriate effort – It is a start! Enable people –There is no “one way” to do this –Any planning is better than no planning 24

LTCG Long Term Care Group, Inc Information Sources - Counselors America’s Health Insurance Plans (AHIP) Long Term Care Professional Designation (LTCP) Book Series AHIP’s Employers’ Guide to LTC Insurance LTC Champions’ Network website 25

LTCG Long Term Care Group, Inc Consumer Resources AHIP’s Consumer Guide to LTC Insurance NAIC “A Shopper’s Guide to LTC Insurance” “Own Your Future” LTC Planning Kit. Phyllis Shelton. Long-Term Care Planning Guide: The Consumer Resource for Long-term care Financing. Shelton Marketing Services, Marilee Driscoll. The Complete Idiot’s Guide to Long-Term Care Planning,

LTCG Long Term Care Group, Inc Consumer Resources Long Term Care Champions Real Life Stories about LTC Planning United Seniors Health Council. Planning for Long-Term Care