Long Term Care In The News......

Volume 21

Welcome to the twenty first 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.

REPUBLICAN NATIONAL CONVENTION

As we are sure most of you are aware, the Republican National Convention is taking place at Madison Square Garden from August 30 through September 2. During this time, most businesses surrounding this area of Manhattan will be closed. However, to best serve our brokers and agents, Custom Care Solution will remain open each day from 9:00am until 5:00pm. Please be aware however, access to our building located at One Penn Plaza will be very limited to outside visitors and we may also experience difficulties with phone lines, package deliveries and email communications due to the heightened level of activity and security during this time period. We are asking for your cooperation and patience as we will be also operating with limited staff. In addition, if you can identify any needs that you may have for proposals or materials for that time period, it would be great to hear from you soon so that we are in the best possible position to respond to those needs. We thank you for your business and look forward to hearing from all of you.

MEDAMERICA’S AFFILIATION PROGRAM

Do you know any couples who are members of an Association or whose employer would like to see them receive a super discount on their Long-Term Care Insurance?? It’s easy as 1, 2, 3 with MedAmerica’s Simplicity. Look at the potential savings!! A married couple in preferred health that belong to an Association or Employer who implements an Affiliation discount program can save over 40% on their long-term care insurance premium. MedAmerica’s Affiliation Program is available to Associations and Employers Groups with a minimum case size of 5 members or employees and 1 written application. For more information regarding the Affiliation Program, please contact us.

MEDICARE INCREASES NURSING HOME PAYMENT RATES

The Centers for Medicare and Medicaid Services (CMS) announced recently an update to the Medicare payment rates for skilled nursing facilities that will result in an estimated $440 million increase in Medicare payments in fiscal year 2005. The increase reflects a 2.8 percent annual update in payment rates. Under Medicare’s skilled nursing facility prospective payment system (SNF PPS), each facility is paid a daily rate based on the relative needs of individual Medicare patients, adjusted for local labor costs. The daily rate covers the cost of furnishing all covered nursing facility services, including routine services such as room, board, nursing services, and some medical supplies; related costs such as therapies, drugs and lab services; and capital costs including land, buildings and equipment. For a complete copy of this announcement, please contact us.

IDEAS TO FIND LTC PREMIUMS AT THE WORKSITE

Baby boomers are a prime market for long term care insurance, and the workplace can be an ideal place to sell it to them. According to a recent article in the National Underwriter, midlife boomers are increasingly aware that they need to pay attention to the possibility they’ll face unforeseen LTC expenses after they retire. Many already are deeply involved in caring for their own parents or other aging relatives. The reason the worksite can be a good place to sell to them, is because many have the problems of their aging parents on their mind while they are on the job. In order to sell LTC profitably, concentrate on selling it as an Executive Carve-out benefit or think of ways to get the employer to save money with other group insurance products they currently offer. A broker in NJ recently found premium for an employer-paid LTC plan by raising the companies existing health insurance co-pay for the primary/specialist care as well as adding a drug card deductible. In lieu, each employee received an employer-paid LTC base plan which was 100% tax deductible to the corporation. Employees were able to buy additional coverage to add to their employer-paid base plan. For additional information regarding this idea, please contact us.

LEGISLATURE OK’S ASSISTED LIVING MEASURE

In a move that could drastically overhaul the care of thousands of elderly residents in New York’s growing assisted living industry, the State Legislature unanimously passed a bill to improve oversight and toughen enforcement of such centers. On August 12, 2004, according to Newsday, the bill passed with the support of consumer advocates and providers, as well as Governor Pataki. The bill outlines strict protections for assisted living residents, including those with Alzheimer’s and dementia. All facilities calling themselves assisted living, must be licensed by the state Health Department. This is the first time New York State has clearly defined the term “assisted living,” and just who can use the title in its name and marketing materials. An assisted living facility offers residents housing, monitoring and personal care in a home-like setting, according to the new definition. This measure comes as the state’s senior population is expected to double in the next decade. Under the new terms, those facilities that do not obtain approval from the department to operate as assisted living operators, must drop the term from their names. Failing to do so can result in a class A misdemeanor, as well as fines. The bill also requires a plain-language contract, a consumer bill of rights and service plans for residents that are updated every six months to better monitor a senior’s changing health. In addition, to reflect the wide range of residents in assisted living, the measure requires additional certification for centers caring for people with dementia or serious health needs. More than half of assisted living residents nationwide have Alzheimer’s or some form of dementia. For a complete copy of this article, please contact us.

We at CCS are continually looking for ways to keep our brokers up to date. If you’d like to send comments or suggestions to make this newsletter better, please feel free to contact us.

Debra A. Walker, LTCP, CLTC Karin L. Wertheim, LTCP, CLTC

C U S T O M   C A R E   S O L U T I O N ,   L L C

One Penn Plaza, Suite 2035
New York, New York 10119
info@customcaresolution.com

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