Welcome to the ninth 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 …….

Medicare Introduces Online LTC Counselor Planning Tool

40 Million Americans are enrolled in the Federal Medicare program…so when Medicare speaks people listen. And, Medicare is increasingly speaking about long-term care planning and the role played by LTC insurance. A new feature of Medicare’s Website www.medicare.gov is the Long-Term Care Counselor. It was developed by the National Council on the Aging under contract with the Centers for Medicare & Medicaid Services to provide a comprehensive look at long-term care from the individual’s perspective. Based on responses to the questionnaire this tool will provide information regarding the need for long-term care, the estimated cost of long-term care and the best methods for financing any current or future long-term care needs. The Medicare website now provides impartial, current and unbiased information specific to age, health and financial and family situations. Run the Medicare report and your clients will see their own personalized and very real risk and financial exposure. Then, as their advisor, you can show them how some very affordable long-term care insurance can pay for this.

State of the LTC Industry

Buck Stinson, President of GE Financial placed an article in the February Life & Health Advisor regarding the state of the long-term care insurance industry. Though there have been some news stories and LIMRA studies questioning the value of the product and relative profitability in the insurance industry, he feels that we can expect to see a growing market opportunity. Can you say the same thing about other insurance or financial products that you may be representing? We know the facts and they are irrefutable. Our society is aging. The first of 76 million baby boomers will turn 65 in just eight years and the older we get the more health care we will most likely need. It is estimated that Social Security, Medicare and Medicaid will consume nearly three-quarters of federal revenue by 2030. Some 42% of Americans who reach age 70 can expect to utilize some type of long term care. The bottom line is according to Mr. Stinson, we can expect to see a growing market opportunity in the near to intermediate term for good companies with good products, actuaries, distribution and risk management. If you don’t receive this journal, call us and we will send you a copy.

SignatureCare Spotlight

During 2003, some carriers in the long-term care market rolled out their next generation policies, with price increases of 25 to 40 percent compared to their previous versions not uncommon. MassMutual also unveiled a revised version of SignatureCare (300 Series) that added extensive policy features, such as independent home health caregiver language, coverage outside the United States for 30 days, a five year rate guarantee (in most states – not NY) and two cross-sell discounts. Unlike the competition, Mass Mutual added these features without increasing premiums. In fact, the cost of the Indemnity Benefit Rider is actually less now (15 percent versus 20 percent) than under the older policy series. Of course, price isn’t everything. SignatureCare is not only competitively priced, but it is also flexible, comprehensive and most importantly, backed by Mass Mutual’s strong financial ratings. SignatureCare can be sold as comprehensive or facilities only, reimbursement or indemnity, and contains a joint premium waiver. It is designed to compete head on with top-tier carriers in the market where most LTC insurance is sold today. Call us today for more information or quotes on this outstanding product.

Transamerica Rate Increase

We have received a copy of a letter from Transamerica that went out to policyholders in the State of Illinois. This letter stated that they are raising the insured’s premium effective July 1, 2004. The increase is going to be about 45%. We are unaware of any other states where this rate increase has taken or will take effect. Transamerica also attached a Q & A to the letter that states there will be an additional premium increase effective two years from now.

Link Up

The internet can be a valuable resource for the latest developments in long-term care. We have provided links below that cover a variety of long-term care topics. For more information about the tax incentives associated with long-term care insurance: www.irs.gov and for more information on caregiving issues: www.caregiver.org or for general long-term care information for your prospective clients: www.aaltci.org.