1. National Commissioning Conference
Stuart Cartwright
Director
Care Asset Management
National Commissioning Conference

2. Agenda The Process The Results Marketing & Development
Care Fees Funding Example
In Summary

3. National Commissioning Conference
The Process
National Commissioning Conference

4. The Process Access to CAM via “air gap” CareAware triage enquires
Provides access to “free” information
Refer back to Suffolk, if necessary
Reduce risk - Disconnect Suffolk from CAM
Impartiality & independence

5. National Commissioning Conference
The Results
National Commissioning Conference

6. Enquiry Sources December 2011 to September 2012 No. %age
F2F Teams 33 (25%)
Customer First 27 (21%)
CareAware Direct 41 (31%)
Non Council Routes 30 (23%)
Total

7. Results to date Enquiries 133 Referrals 31 1:4.3 Instructions 14 1:2.2
December 2011 to September 2012
Enquiries 133
Referrals 31 1:4.3
Instructions 14 1:2.2

8. Estimated savings December 2011 to September 2012
Client Suffolk Client Weekly Annual Life Est.
Tariff Cont. Tariff Tariff Expectancy Liability
A £ £ £ £15, £93,642
B £ £ £ £ 6, £21,372
C £ £ £ £18, £70,080
D £ £ £ £11, £34,833
E £ £ £ £11, £43,768
______ _______ ________
Totals £1,235 £64,212 £263,695

9. Marketing & Development National Commissioning Conference

10. Marketing & Development
Design, produce and print bespoke leaflet
Issue as part of the referral process and to be available throughout the county
Provide supporting information such as an FAQ document
Initial print run of 10,000 leaflets

11. Marketing & Development
Method of Contact
Allocate a “Freephone” number to Suffolk County Council at our expense
Allocate an address for Council contact and for client contact
Allocate senior member of staff to Suffolk to co-ordinate all project communications

12. Marketing & Development
Develop Awareness and Provide Training in the following Key Areas. For example:
Customer Service Centre
Develop “scripts” and a referral handover process to CAM/CareAware - Confidence
Establish “rapport” between key staff
Agree customer service standards & reporting and good outcomes for service users

13. Marketing & Development
Develop Awareness and Provide Training in the following Key Areas. For example:
Council “Face to Face” Locations
Bury, Lowestoft, Ipswich etc
Leaflet Supply and Referral Processes
Possible Advice Surgeries

14. Marketing & Development
Develop Awareness and Provide Training in the following Key Areas. For example:
Residential & Nursing Care Providers
Issue marketing letter & response to 184 Care Homes & 50 Nursing Homes.
Provide leaflets and other support to include training, seminars & surgeries
Explain Benefits to Care Provider

15. Marketing & Development
Develop Awareness and Provide Training in the following Key Areas. For example:
Home Care Providers
Crucial Longer Term Strategy – Majority of providers in the Private Sector
Aged 65+
5000 approx – Physical disability/frailty
600 approx - Dementia

16. Marketing & Development
Develop Awareness and Provide Training in the following Key Areas. For example:
Home Care Providers (cont.)
Issue marketing letter & response to all Home Care Services providers
Provide leaflets and other support to include training, seminars & surgeries
Explain Benefits to Care Provider

17. Marketing & Development
Develop Awareness and Provide Training in the following Key Areas. For example:
Council Websites
Register Offices
Relevant Council Departments
Communications/ Marketing Departments

18. Marketing & Development
Community Support Groups. For example:
Awareness Days & Carers Week
Provide Literature and Support Events throughout Suffolk
Raise Awareness with Services Users
Provide an information hub & support County Council Services

19. Marketing & Development
Community Support Groups. For example:
Develop Wider Community Group Mailings
Establish database of Key People within the County and issue monthly/quarterly bulletin
CareAware current circulation Nationally is 40,000 per quarter
Promote the service, report good outcomes & recognise achievement of staff etc.

20. Marketing & Development
Known Liabilities. For example:
For immediate benefit, service should be immediately introduced to the following categories.
Deferred Payments Contracts
Twelve Weeks Property Disregard
Respite or Temporary Care

21. National Commissioning Conference
Residential Care
Funding Example
National Commissioning Conference

22. Residential Care Example
Mrs Smith, 88 years old and lives in Suffolk
Following sale of her home now holds £195,000 on deposit
Residential care fees £36,400 per annum (£700 per week)
Net income £12,478 per annum
Care fees funding shortfall of £23,922 in first year

23. Residential Care Example
Purchase a Care Fees Funding Annuity
Trade a lump sum for a guaranteed income
Underwritten to establish accurate mortality risk
Risks to capital if death within estimated mortality, increased care needs or higher care fees inflation
Annuity paid free from income tax

24. Residential Care Example
Care Fees Funding Options:
Purchase an Immediate Needs Annuity
Purchase a Two Years Deferred Annuity
Purchase a Partial Immediate Annuity
Invest ALL Available Capital

25. Residential Care Example
1. Purchase an Immediate Needs Annuity.
Most competitive premium £94,801
5% per annum compounded increases, payable monthly in advance
Breakeven after three years & eight months
£94,801 / £195,000 = 48.6% cost to capital
Or 51.4% preservation of capital

26. Residential Care Example
2. Purchase a Two Years Deferred Annuity
Fund first two years of care £49,040
Purchase 2yr Deferred Annuity £43,428
Breakeven after three years & seven months.
Earlier mortality - reduced cost to estate
£92,468 / £195,000 = 47.4% cost to capital.
Or 52.6% preservation of capital

27. Residential Care Example
3. Purchase a Partial Immediate Annuity
Purchase Partial Annuity £ 70,041
Invest Balance of Capital £124,959
Breakeven each year if care fees increase <= 5% pa & investment return >= 5% pa.
Earlier mortality - reduced cost to estate
£70,041 / £195,000 = 35.9% initial cost to capital.
Or 64.1% preservation of capital

28. Residential Care Example
4. Invest All Available Capital
Available Capital £195,000
First Year Shortfall £ 23,922
Required Return % Net
Assuming care fees increase <= 5% pa & investment return >= 5% pa
Earlier mortality - reduced cost to estate
Longevity Risk

29. Residential Care – Funding Options

30. Residential Care – Funding Options
Assumed Inflation 5% per annum
Annuity Rate 25.23%
Investment
Immediate Care Plan
2 Year Deferred
Partial
Care Plan
Available Capital
195,000
Cost of Care Plan
NIL
94,801
43,428
70,041
Opening Balance
100,199
151,572
124,959
Year 1 Shortfall
23,922 -
Investment Return on Balance
8,554
5,010
6,383
Balance End of Year 1
179,632
105,209
134,033
Year 2 Shortfall with 5%
25,118
7,726
5,260
5,446
Balance End of Year 2
162,239
110,469
114,360

31. Paying for Care – Funding Options
Assumed Inflation 5% per annum
Annuity Rate 25.23%
Investment
Immediate Care Plan
2 Year Deferred
Partial
Care Plan
Balance End of Year 3
142,959
115,993
120,078
124,959
Balance End of Year 4
120,714
121,793
126,082
Balance End of Year 5
96,219
127,882
132,386
Balance End of Year 6
68,972
134,276
139,005
Balance End of Year 7
38,780
140,990
145,959
Balance End of Year 8
5,354
148,040
153,253
Balance End of Year 9
155,442
160,916
Balance End of Year 10
163,214
168,962

32. Residential Care Example
Summary
Risk of Longer Life Expectancy and Certainty of Self-Funding Care mitigated by the annuity options
In this example, Annuity Breakeven reached after approximately Four years
In this example, Investment Option risks capital depletion after approximately Seven years

33. Residential Care Example
Notes
Care Fees funding for illustrative purposes only. This case study does not constitute advice and should not be construed as such. Personalised advice should be sought in each individual instance.
The example assumes care fees increases each year of 5% Net per annum compound throughout. It also assumes investment returns of 5% Net per annum compound throughout.
Escalation of benefits is included at 5% Net per annum compound each anniversary in arrears. The benefits are payable monthly without proportion. No capital protection has been included in the event of death.
This illustration is provided by Care Asset Management Limited, Authorised and Regulated by the Financial Services Authority.
This illustration should not be amended or reproduced without the express permission of Care Asset Management Limited. E&OE.

34. National Commissioning Conference
Thank You
Stuart Cartwright
National Commissioning Conference