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Veterans’ Admin Helps Pay for LTC

January 3, 2014 by Honey Leveen Leave a Comment

A December 23, 2013 New York Times article titled, “Winning Veterans’ Trust, and Profiting From It” describes a program that’s a darling to many trade contacts I have here in Houston in the long-term care industry because it helps fill vacant assisted-living apartments and nursing-home beds.

The program pays benefits that may be worth more than $20K/year per person from the Veterans Administration Aid and Attendance program. To qualify, you must have a low income, you or your spouse must be a World War II veteran, and there must be a need for long-term care.

One’s income may be naturally low, or made “artificially” low. I know a colleague who helps people qualify for this Veterans’ program. He works for one of the companies mentioned in the article. He makes most of his living offering free assistance with the VA Aid and Attendance program application process. To get applicants’ incomes low enough to qualify for the program, he can sell annuities that are exempt from inclusion in the qualification process, thereby enabling his client to qualify for VA Aid and Attendance benefits.

Quoting from the article, “For the advisers and retirement homes, the attractions are clear. The V.A. program paid $5.1 billion to 514,000 veterans or their survivors this year, up from $3.4 billion in 2007, according to the Department of Veterans Affairs. The number of veterans or their spouses receiving the aid and attendance benefits, the stipend for assisted living, has surged by 30 percent — leaping to 206,000 in 2012, from 158,000 in 2006.”

According to the article, qualifying for the VA Aid and Attendance program is not very difficult. Checking and monitoring for appropriate applications is lax (in other words, the VA is understaffed; we already knew this).

This is another example of bureaucratic ineptitude and economically unsustainable legalized theft.

It’s unwise to expect our government to be able to pay for your long-term care.

Blue Cross Plans Jump to An Early Lead: Coincidence or not?

October 14, 2013 by Honey Leveen Leave a Comment

An article in the October 11, 2013 New York Times titled Blue Cross Plans Jump to an Early Lead caught my attention. It reports that Blue Cross Blue Shield carriers are emerging as the most competitive of the new Affordable Care Act (ACA, or Obamacare) plans. It states that the majority of Blue Cross Blue Shield companies are “not-for-profit” corporations. This unique status can be very important when it comes to creating affordable insurance policies.

Here is a reputable link that describes what a Not-For-Profit corporation is. Here’s a quote from that link, ” A not-for-profit corporation may not be formed for pecuniary profit or financial gain and the corporation’s assets, income or profit may not be distributed to or otherwise used to benefit the corporation’s members, directors or officers except as permitted by the Not-for-Profit Corporation Law, e.g., as reasonable compensation for services to the corporation.”

I am growing to love not-for-profit insurance companies. When we look at accurate cross-comparisons of long-term care insurance (LTCi) policies here in TX, we discover that MedAmerica Insurance Company and LifeSecure Insurance Company often have the most competitive LTCi rates. Neither company is not-for-profit, but each is a wholly owned subsidiary of a not-for-profit Blue Cross Blue Shield parent company.

Not-for-profit status requires insurance companies to spend more money paying claims and less money on administrative costs, like salaries and other expenses. I asked my LifeSecure Regional Representative to read this blog and check it for accuracy. She confirmed that the tight budgeting and fiscally responsible management of the not-for-profit-parent is an integral part of LifeSecure’s management and culture.

I used to wonder why these two carriers had such competitive rates and whether they were charging policy holders enough to ensure stable enough premiums in the long haul. Now I better understand a big part of why their LTCi plans are safe and very competitive.

Rolling Out the ACA Plans

October 13, 2013 by Honey Leveen Leave a Comment

I can’t remember a more exciting week in the world of health insurance. I’ve been closely watching the rollout of the new Affordable Care Act (ACA) health insurance plans. The plans were put on the market on October 1, 2013. Shopping for an ACA plan is supposed to be easily done through official ACA websites. The new plans are supposed to be so reasonable that they will be affordable for many who are presently uninsured.

My peers who sell a lot of health insurance, plus mainstream media, tell me that registering online for an ACA plan is currently riddled with delays and glitches. I believe this is due to a huge public interest in learning about the new coverage.

The government continues to promise to fix the glitches and make enrollment in an ACA plan smooth and easy.

I advise using perspective and patience with the ACA rollout.

In some states, the ACA rollout is rocking and rolling along, with a good success rate, according to the article “Heath Act Embraced in California“, from the October 11, 2013 New York Times.

Here’s another article from the October 11, 2013 New York Times, titled, “In Florida, Opposition by the State and Snags in Signing Up on the Web”. It describes a high rate, at least so far, of failure to enroll in ACA plans. Florida’s experience is dismal and nearly the opposite of California’s.

In TX, I’ve heard almost no good news of people being served and successfully finding coverage. Texas did not create its own healthcare exchange. California did. California also spent a lot of money enlisting volunteers to assist the public with the ACA enrollment process. Texas did not. Also like Texas, Florida has fought against the ACA and gone to no effort to support its implementation.

Small wonder successful enrollments in ACA plans here in TX have been next to nil.

I advise patience. These are exciting times for me.

Long-Term Care Insurance Saves the Day!

April 4, 2013 by Honey Leave a Comment

In “Expense and Emotions in Preparing for Long-Term Care” (New York Times, March 26, 2013) Ann Carrns describes a situation that many Americans know all too well. A 61-year old man saw his parents decline rapidly after reaching their 80s. His father required a live-in health care aide for his last two years, and his mother developed dementia and died in a year.

Fortunately for all concerned, the father had purchased a long-term care insurance(LTCi) policy about 30 years before his death, so he was able to stay at home and cover the bulk of his LTC expenses with the policy. Sadly, only 10% of Americans own long-term care insurance (LTCi) – even today! – and find themselves in emotional and financial crises when a loved one needs care. The son of this couple is the exception, however, because he has applied for an LTCi policy for himself and his wife and is currently awaiting a final decision by the provider.

Although the article begins with this very positive scenario, Ms. Carrns then misrepresents LTCi as “…an increasingly expensive and complex product.” Yes, the cost of premiums has risen in recent years, primarily because the unusually low interest rates in the US have required providers to increase the reserves they are required to maintain by law to ensure that all claims can be paid. Unfortunately, Ms. Carrns fails to mention this requirement or the fact that these increases, while difficult for some buyers to absorb, will guarantee that they will receive the funds to defray the cost of care when they need it.

As far as “complexity” goes, individual policies have become more standardized and streamlined throughout the industry. Yes, the number and range of options offered by policies have increased, but this reflects the maturity of the product and helps customers and agents find the policy that most closely meets client needs.

The article goes on to cite specific examples of costs, around $200 to $300 per month, which the reporter calls a “hefty bill” for retirees. But when you consider the $80 – $100 that many Americans pay monthly for cable TV, the LTCi premiums stack up as a pretty good inventment, considering the $200,000 to $300,000 in benefits, which the Ms. Carrns notes that policy holders will receive when they require care. Furthermore, a seasoned LTCi specialist can help clients select features that will reduce premiums while still providing a significant financial benefit when care is needed.

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?

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Veterans’ Admin Helps Pay for LTC

Blue Cross Plans Jump to An Early Lead: Coincidence or not?

Rolling Out the ACA Plans

Long-Term Care Insurance Saves the Day!

Older is Not Better…It’s Brutal

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