Welcome to the seventeenth edition of Long-Term Care in the News. We, at Custom Care Solution, LLC, want you to be on the cutting edge of changes and updates within the Long-Term Care industry. We will accomplish this through these email bulletins distributed each week to our brokers, agents and their staffs.

Long-Term Care In The News …….

In Case You Missed Our Special Announcement Regarding Transamerica

All Transamerica’s Long-Term Care sales will be discontinued as of January 1, 2005. All new business applications must be signed and dated no later than December 31, 2004. These must be received in the Bedford, TX office no later than January 14, 2005. Transamerica will honor their commitment to those customers who have purchased their Long-Term Care products and no existing policies will be affected by this decision. They have been evaluating the viability of their Long-Term Care business for some time. They have determined that this business does not meet their return objectives relative to the risk associated with this product. For this reason, and others, the Long-Term Care Division will discontinue the marketing and sales of its Long-Term Care products. They went to extraordinary lengths to find ways to fix some of the concerns they had about this business and/or find an alternative solution and have reluctantly concluded that this is the only prudent option available. For further information on this new development please contact CCS to request the Q & A document which TransAmerica distributed at the end of last week. If you have any pending worksite or individual sales proposals outstanding using the TransCare Options product, we encourage you to finalize these applications as quickly as possible.

Penn Treaty Personal Freedom 3

Penn Treaty has announced the release of their new flagship LTCi plan, Personal Freedom 3. Just a few of the outstanding features of this product that will make your LTCi sales soar are: indemnity benefit for home care; family member/private caregivers; 5 year rate guarantee; dual waiver of premium; shared care; a true third pool; spousal survivorship rider; many elimination periods including 365, 730, 1095 and 1460 days (think about it – there are millions of in-force LTCi policies with benefit periods of 1, 2, 3 or 4 years – this is a great market to upgrade benefits for your clients!); first day coverage for home care PLUS there many underwriting classes, making it easier to place more of your business. This product is currently available for sale in the following states: PA, ME, DE, AL, AZ, CO, KY, LA, MI, MS, NV, ND, OK, OR, SC, SD, TN, VA, WV, WY. Many new states will be rolling out in the coming weeks and months. Keep your eyes open for additional announcements as new states become approved. In the meantime, call us to learn more about this comprehensive product.

Check Out Your Local Geriatric Care Managers

As a LTC Specialist, you are often the key professional resource for the elder person and family once a care need becomes evident. As a Specialist, you should know about the types of services that geriatric care managers provide and offer, as well as about the more established services like nursing homes, adult day care, and home care. You can not only gain a professional edge but word will get out that you are a real resource for senior services and your practice will grow. In the LTC insurance marketplace, who you know and what you know about the LTC field is as important to your success as knowing your products and eliciting the need. So why not scout around your own community to see if anyone if offering geriatric care management services. If so what is entailed? How much experience does the expert have? How can you coordinate your services with theirs? Can you establish a cross-referral system or develop other mutually beneficial business connections?

U.S. Comes Up Short on Government Support for Workers Who Care for Elderly

The United States lags other industrialized countries such as Germany and less developed countries from Botswana to El Salvador in establishing policies that guarantee employee benefits, such as paid time off to care for elderly family members. The results were included in the first comprehensive report from The Project on Global Working Families at Harvard University. “While we think of the US as a leader in many fields, we are enormously behind on every single kind of measure protecting working families,” said Jody Heymann, the project’s director and an associate professor in the Harvard School of Public Health and the Harvard Medical School. “The majority of the middle class can’t count on paid parental leave when they need it, paid sick leave when they need it, having the ability to address the sick needs of children, elderly parents or other family members.” In 1993, Congress passed the Family and Medical Leave Act, requiring employers to giver workers up to 12 weeks of unpaid time off for family illness or maternity leave. But Heymann said the FMLA is not enough because it does not provide paid time and can be used only for severe illness. Capitol Hill has taken note of the study’s findings. Several weeks ago, Federal legislation was introduced that would guarantee US employees seven days of annual paid leave for their own or family medical needs. Even if new legislation passes, LTCi will continue to play a critical role in protecting American workers and their families from the sacrifices in job performance and pay that often accompany a long-term care event.