Alzheimer's Association Video

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Not enough can be said about the devastating effects of Alzheimer's, and its effect on patients and their families. 

Alzheimer's Disease can't be prevented.   It can only be planned for. 

Take a few moments to educate yourself and view this short video.

As Sargent Friday (Dragnet) would say 
"Just the Facts-mam-just the facts"
(my long term memory is still intact)

View: The Epidemic is Alzheimer's

Note: February 14th segments of  Kiplinger's Financial power point presentation is presented.

"The Cost Of Alzheimers" 

June 2013:LTC-Guide News and Updates.

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John Hancock has announced “gender-distinct pricing, reflecting the male/female differences in the probability of benefit usage.” 

Gender-distinct pricing is not in affect in California.  (I am checking to see if CA has regulations against gender-distinct pricing.)  Only the Compact states of: Alabama, Alaska, Colorado, Georgia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.   Additional states will be included upon approval. However, Montana will remain with unisex rates, as it does not permit gender-distinct rates.

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Genworth has announced effective July 1 their LTCi Privileged Choice Flex and Privileged Choice Flex Partnership will be available in California on July 1, 2013. 

They are working on CA approved brochures and Illustrations.  Limited CA marketing materials will be approved by June 17^th. 

Contact: Charles@LTC-Guide.com for details and updates.

Time Is Wasting Away

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Indications are the Genworth will have product available for purchase within 60 days.  What is still unclear is:  Will Genworth have a CA Partnership policy for sell?  My guess (and hope) is they will.  However there needs to be progress in amending the Partnership regulations.

Since the CA Partnership is to attract and maintain LTC insurance  carriers they need to offer a product that is competitive.  Improvements to the Partnership is as simple as:

1. Allowing 3% compound inflation and other types of automatic inflation protection.
2. Having preciosity with other Partnership States.  (Asset Protection & Estate Recovery Credit)
3. Reducing the Minimum requirement for daily benefit from 70% of average cost of Nursing Home Care to 50%.

This, along with CA enforcing SB 483 to reduce Medi Cal planning and bring the state into compliance with Deficit Reduction Act of 2005. Then Genworth and other companies would consider redirecting their marketing efforts to Ca Partnership LTCi.

Desperately needed is leadership and cooperation between the DOI and Dept of Health.  Their mandate is to regulate Long Term Care insurance and make it a viable alternative to Medi Cal Planning.  LTCi should be affordable to the public.  Time is wasting away... the public is getting older and losing their ability to buy protection because of health concerns.

Certain is the fact that our dollars will buy less coverage.  This can be partly compensated by product design.  Tax Credits, above the line tax deductions permitting LTCi in group Cafeteria plans are other ideas CA can legislate in promoting  Long-Term Care Planning.

Short Recess For Genworth

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Hope is the Genworth LTCi will be dark in CA for a short period of time.  Perhaps, as early as July they will be introducing Preferred Choice Flex.  Why so optimistic?  Genworth has been in the process with the DOI and the CA Partnership for 20 month.  They have apparently received verbal approval.   I still will be a be-leaver when they formally announce their back.

What will change?  The Flex will have a shared care benefit and limited (1 year) international coverage.  Couple discounts and preferred rates will probably remain.  Along with unisex rates.

Until then,  TransAmerica and John Hancock reinbursement protection.  MedAmerica for cash plans. Linked benefits Genworth TLC and Lincoln Money Guard.

Genworth Suspention of LTC Sales Is Temperary

                                                                     

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Genworth has been selling the Choice Partnership LTC in CA since 1994.  They are scheduled to introduce the Privileged Choice Flex (PCF) in 31 one states on April 15th. California regulators have not yet approved Genworths new product.  In order to halt a prolonged "fire sale" Genworth announced (March 7th) they will temporarily suspend individual policy sales (March 21) in CA until the approval of Privileged Choice Flex.

I anticipate  the PCF to be an un-bundled LTC product at a perhaps 30% or higher premium.  This is do to: 1. Lower than anticipated Lapse Rate (from 6% to about 1%) 2. Low interest earnings on invested assets. 3. Overly optimistic underwriting assumptions.

Genworth has already let us know that they are moving towards: 1. Ending Preferred ratings (10 to 20% savings) 2. Reducing spousal discounts (from 40 to 20%) 3. Eliminating the sale of Lifetime benefits. 4. Moving from unisex to sex distinct  rates. This means men's premium will go down and women's premiums will increase.

Genworth remains the largest underwriter of LTCi in the US.  As noted by LifeHealthPRO - Feb 6, 2013 : Genworth reported a  $8 million net income in the last quarter.  Their gross benefit ratio increased to 126.4 % from 114.1%.  Loss ratio increased to 76.2 % from 67.1% (The have the reserves to pay future claims)

This is what I wrote March 5 Th  on the CA Partnership LinkedIn regarding the Genworth CA Partnership

"...  Remember the positives:

1. Protection from unreasonable rate increases. 

     ( a. DoI & DHCS can't approve any rate increases greater that 40% over a three  

          year period. (requires two separate actuarial audits) 

      b. Total approved rate increases must be spread equally over three-years.

      c. All Partnerhip policies must be kept in a unique risk pool.

      d. requires 85% loss ratio on premium increases) (AB 999)

2. Independent Care Management

3. Asset protection from Medi-Cal and Estate Recovery credit.

4. Monthly reimbursement for Home and Community Care.

5. Protection from unintended Lapses.

6.  Pre-Health Underwriting."

Talking about the evolution of the CA Partnership

"...  Regulations need to be reviewed and modified.  #1 being modification of the required 5% Compound inflation. (Good for 1994-not for 2013).  #2. SB 483 (2008) regulations need to be implemented.  #3. More Insurance Companies need to admitted to the Partnership. (Note: Any positive changes in CPR regulations must be offered to existing policy holders)

The California's DUI and DHCS have been extremely slow in approving Genworth's Privileged Choice Flex.  Other insurance  companies have also complained about the delays in the approval period.   It seems until the State streamlines the system and puts more manpower on problem we will continue to go from crises to crises as companies struggle to provide meaningful long-term care protection.

Kiplinger: The Cost of Alzheimer's

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Credit for this belongs to Kipliger.  You can view the 8 minute video @: Kipliner.com       Search: Alzheimer's

50% of those who are age 80 will have Alzheimer's

Even if you don't by Long Term Care Insurance see an Elder Law Attorney for:

The cost of care is anticipated to increase by 5% a year

MAY cover the costs of ... drugs?

 Long Term Care Insurance must be purchase before you lose your health.

Pertains primarily to Early Onset of Alheimer's

 Long Term Care Insurance must be purchased before you lose your health. 

"Just the Fact Mam" Who need LTCi Services

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For years I have used the Nursing Home Statistics provided by the CA Partnership for LTC.  to support the planning for long-term care, Which is: 

Of the People who reached age 65: Men 1 out of 3, Women 1 out of 2 will need a Nursing Home before death.  The average stay will be 2.5 to 3 years.  For everyone who needs a Nursing Home 4 will be taken care of at home.

I have said it so many times it has lost it's meaning.   So hear are some new stats that I hope will bring back into focus the growing long-term care need.

According to the U.S. Department of Health and Human Services, in 2007, about nine million men and women over the age of 65 will need long-term care services. By 2020, 12 million older Americans will need long-term care. Most will be cared for at home. In fact, an agency study revealed that family and friends are the sole caregivers for 70 percent of all elderly Americans needing long-term care. The research also showed that people who reach age 65 have a 40 percent chance of entering a nursing home during their lifetime. About 10 percent of the people who enter a nursing home will stay for five years or more.

A research project concerning the likelihood of needing long-term care services was conducted by Milliman USA, (an actuarial consulting firm). The results of the study were published in the December 2005 edition of LTCi Sales Strategies magazine:

Out of every 1,000 65-year-old policyholders:

- 449 will need LTC services
- 106 will need LTC for > 2 years
- 59 will need LTC for > 3 years
- 34 will need LTC for > 4 years
- 20 will need LTC for > 5 years

The length of stay also varies significantly depending on the policyholder’s gender and whether the policyholder is married or single. The two “extremes” for a 65-year old are shown (that for a married male (lowest) and a single female (highest)):

Out of every 1,000 married 65-year-old males:

- 302 will need LTC services
- 20 will need LTC for > 2 years
- 12 will need LTC for > 3 years
- 7 will need LTC for > 4 years
- 4 will need LTC for > 5 years

Out of every 1,000 single 65-year-old females:

- 555 will need LTC services
- 70 will need LTC for > 2 years
- 51 will need LTC for > 3 years
- 35 will need LTC for > 4 years
- 23 will need LTC for > 5 years

Joe Friday on Dragnet always said "Just the facts mam."   

These are the facts.  So what? Facts mean little unless accompanied with "Personal Experience".    Again emotion triumphs  logic.   Facts don't motivate-real life experiences do.

 It is Life that occurs while weighing the facts.