Honey, Author at Long Term Care Insurance Expert | Honey Leveen

Retirement Crisis Ahead for Boomers and Gen Xers as Many Keep Their Heads in the Sand

March 27, 2013 by Honey Leave a Comment

A new report released by the Employee Benefit Research Institute (ERBI) this month. Its title is “ERBI’s 2013 Retirment Confidence Survey: Perceived Savings Needs Outpace Reality for Many”

This new survey echos other surveys that have forecast a bleak picture for Americans planning to retire in the next decade or two. In particular, this new Retirement Confidence Survey (Employee Benefit Research Institute and Mathew Greenwald & Associates) found:

Only two-thirds of workers reported that they and/or their spouse have saved money for retirement, down from 75% in 2009, probably due to the depressed economy.
57% of workers have less than $25,000 saved, not including the value of their primary residence, and only 24% have savings of greater than $100,000.
Denial is not a river in Egypt – only 46% of respondents have even tried to figure out how much savings they will need to live comfortably in retirement!

Tragically, Americans will continue to experience a rude awakening as they begin their “golden years”, which might be more accurately labeled as their “desperate years.” And, of course, if they have not included long-term care insurance in their retirement planning, they may see what little they have saved for retirement disappear in less than a year if they need care!

Fiscal Cliff Legislation to Create New Long-Term Care Commission

March 23, 2013 by Honey Leave a Comment

On January 1, 2013, the fiscal cliff has was averted at the last minute with the passage of H R 8, the American Taxpayer Relief Act of 2012 (ATRA).

A section of ATRA 2012 includes the formal repeal of the Community Living Assistance Services and Supports (CLASS) Act. The CLASS Act was supposed to create a voluntary, worker-paid long-term care (LTC) benefits program. Health and Human Services Secretary Kathleen Sebelius announced that she could not set up the CLASS Act program because she could see no way to guarantee that the program would be actuarially sustainable. In reality, the CLASS Act has been “deader than a doornail” for a long time. This legislation just makes its demise official.

The most interesting part of ATRA 2012 for me is that it will establish a commission on long-term care.

The LTC commission is supposed to include representatives from LTC insurance providers as well members representing the interests of family caregivers, health care workers, users of LTC services, and users of LTC insurance. Some commission members are supposed to have demonstrated experience in dealing with public and private insurance.

The commission is also supposed to develop recommendations for creating “a comprehensive, coordinated, and high-quality” LTC system within six months after the commission members have been appointed.

We will see how this shakes out. Both parties agree that the biggest causes of budgetary concern are Medicare and Medicaid usage. I want to be optimistic and believe that sane, sustainable solutions for our nation’s long-term care crisis will result. Unfortunately, however, I am skeptical that much good will come of this new, well-intentioned panel, due to the current contentious political climate and the often demonstrated reluctance of legislators to broach the sensitive subject of Medicare and Medicaid reform. Stay tuned…

Nursing Homes Face Very Perilous Times

March 14, 2013 by Honey Leave a Comment

On March 7, 2013, the Jewish Herald-Voice reported on a potential tragedy.

In Houston, Malcomn Slatko, CEO of Seven Acres Nursing Home, and George Linial, president and CEO of LeadingAge Texas, an association of not-for-profit long-term care facilities, held a press conference to inform the public about the financial peril they face due to shortfalls in Medicaid funding.

The article reports that funding for Medicaid in Texas is the 49th lowest rate nationally. There is a big disparity between the cost of caring for Medicaid-paid nursing home patients and the true cost of caring for them. According to the Texas Department of Health and Human Services, the average Medicaid payment per patient is 17% lower than the actual cost of providing quality care for them.

85% of Seven Acres residents do not own long-term care insurance (LTCi), have exhausted their savings, and are on Medicaid.

To make matters worse, today’s nursing home resident is admitted sicker, frailer, and more needy than in years past.

Like Seven Acres, more and more nursing homes operate in the red. The article reports the inevitable result – there have already been nursing home closings.

When people have the money long-term care insurance provides to pay for care, they are often able to avoid nursing homes and get care instead at home or in good assisted-living facilities.

Nursing homes are not where anyone would choose to receive long-term care. Yet, if you refuse to plan for long-term care responsibly in advance, you might wind up in one.

Older is Not Better…It’s Brutal

February 4, 2013 by Honey Leave a Comment

In “In Hard Economy for All Ages, Older Isn’t Better… It’s Brutal” from the New York Times, February 3, 2013, Catherine Rampell outlines a perfect storm of financial shocks that has eroded the financial security of Baby Boomers – those nearing retirement but not yet covered by Social Security and Medicare.

A summary of the article explaining the oncoming financial/health/lifespan catastrophe, appears below. There are two big crimes I believe Boomers are guilty of. One is avoidance of saving, replaced by living beyond their means. The second is being champions at denial.

The combination of high unemployment, depressed housing values, and low interest rates has reduced older Boomers’ household incomes by 10% since the recovery began three years ago. Many of those who lost their jobs during the Great Recession are too old to be seriously considered for another and too young to collect Social Security or begin living off their retirement savings, which in many cases are paltry. In addition, the unemployed lost the crucial benefit of health insurance and consequently cannot afford routine checkups and preventive maintenance. New research suggests that they may not live as long as expected because of untreated medical problems and financial stress.

What a depressing state of affairs!! But, as the infomercials exclaim, “there’s more!” Nearly 70% of this age group will eventually need some form of long-term care. And even more disturbing is that only 10% of Americans have planned for this potentially staggering additional financial burden by purchasing reasonably priced long-term care insurance (LTCi). The remaining 90% are in denial and counting on blind luck that they will be one of the fortunate 30% who need no extra care in their final years.

My advice to these financially stressed Boomers, AND their younger counterparts who have more time to plan responsibly – explore LTCi as soon as possible! Yes, it will cost you some of your scarce dollars, but take a close look at what you are spending your money on now. Do you really need cable TV? What about eating at home more often or drinking home brewed coffee? Is that expensive vacation trip worth more than the financial assistance that LTCi can provide if you need long-term care?

Ignore Film’s Message at Your Peril

January 30, 2013 by Honey Leave a Comment

Amour is an award winning film that has received rave critical reviews.

Unfortunately, many of you who watch the trailer will be so uncomfortable with the subject matter that you will probably not want to see the film. Even more unfortunate (and frustrating to me), after seeing the film most viewers will still be unwilling to connect the film’s message to their own need for immediate LTC planning.

George, the husband and primary caregiver to Anne in the film, was in denial about the extent of Anne’s need for care for way too long. He refused to acknowledge how bad off she was, and that there was an urgent need for additional care. It’s very likely that one reason he chose to deny the extent of Anne’s need was financial.

Finally, additional caregivers are hired. But they appear to be there for only a few hours a day. Anne’s profound need for care was meticulously portrayed, and it soon became clear that she actually needed full-time care. Any professional in the care giving industry would have quickly recognized this. Again, why was more care not brought in? I believe it was due to George’s psychological denial of the severity of Anne’s condition, as well as the exorbitant cost.

Inevitably, George’s mental and physical health also declines from the stress of being Anne’s primary caregiver and having too little respite.

Of course, if Anne and George owned long-term care insurance, their LTCi policies would’ve been pumping loads of money to defray Anne’s care giving expenses. And perhaps the ultimate, inevitable tragedy would have been averted.

Back to the beginning. How do I know that people still cannot connect the dots between the tragic outcome of Amour and the need for immediate long-term care planning? I had conversations with three ladies in the ladies room afterwards, and when I mentioned that George and Anne would have benefited greatly from owning long-term care insurance, these ladies could not connect the dots. They admitted they did not own long-term care insurance, but dismissed my overtures to discuss why long-term care insurance ownership would have altered the film’s tragic outcome. People dwell in denial.

If you read my prior blog, featuring Steve Moses, you will gain a better understanding of my grave concern about how unprepared Americans are for their possible need of long-term care.

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Retirement Crisis Ahead for Boomers and Gen Xers as Many Keep Their Heads in the Sand

Fiscal Cliff Legislation to Create New Long-Term Care Commission

Nursing Homes Face Very Perilous Times

Older is Not Better…It’s Brutal

Ignore Film’s Message at Your Peril

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