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

Volume 22

Welcome to the twenty second 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 REMINDER

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 strive to 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.

TRANSAMERICA WORKSITE, SINGLE PAY UPDATE

As we have communicated in the past, Transamerica along with the other AEGON Long-Term Care companies have decided to withdraw their products from the marketplace. Transamerica will be exiting on January 1, 2005 with the other carriers following sometime thereafter. However, bear in mind, that Transamerica still has one of the most competitive worksite programs for LTC. They are the only company on the market with true MGI (Modified Guaranteed Issue) with no commission reduction. If you have any cases, now would be the time to get them in. Also, Transamerica is one of the only companies left on the market with a single pay, so now with the end of the road looming, single pays have become a very large percentage of the premium they are taking in. Please contact us for more information regarding these programs.

JOHN HANCOCK ALERT FOR FLORIDA

John Hancock has been following the aftermath of Tropical Storm Bonnie and Hurricane Charley closely and is aware of the devastation and hardship affecting Floridians at this time. In accordance with the state Emergency Order that applies to Brevard, Charlotte, DeSoto, Hardee, Lake, Lee, Orange, Osceola, Polk, Sarasota, Seminole and Volusia counties, all notices of cancellation issued or mailed on or after August 2 through August 18, 2004 are withdrawn and notices will be reissued after October 15, 2004 along with an explanatory letter. Going forward through October 15, 2004, they will suspend the mailing of all lapse notices and notices of termination. Any policy provision which imposes a time limit on a policy owner to perform any act or to transmit information or funds shall be suspended until October 15, 2004. If you have any clients who may have questions regarding the Emergency Order in the named Florida counties, they can contact 888-604-7296.

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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