Making It Affordable for People to Care A Long-Term Care Solution from AAHSA
From ABC’s World News Tonight
What is Long-Term Care?
The broad array of services and supports that people of all ages need when they can no longer completely care for themselves.
Long-term care services and supports include: help with bathing, dressing, or with household tasks like cooking and cleaning.
These services and supports may be provided by a person’s family members or by paid caregivers.
The Scope of the Challenge: Young and Old
Where Is Care Provided? 80% at home 20% institutional setting
35.4 Hours Per Week Caregiving Commitment Family Caregivers – What They Spend, What They Sacrifice, November 2007
Caregiving Commitment 5+ years 32% 52% 3+ years
Who Pays? Private Insurance Public Funding 4% 28% Families and Unpaid Caregivers 68% Families/Unpaid Caregivers 68%
$5,531 Annual cost of care Personal Financial Commitment Family Caregivers – What They Spend, What They Sacrifice, November 2007
Cost Implications for Businesses Cost Implications for Government Source: Metlife Mature Market Institute and National Alliance for Caregiving, July 2006 Source: AAHSA estimate for 2007, based on data for 2006 in "Medicaid and long-term care" fact sheet, Georgetown University Long-Term Care Financing Project, January 2007 $2,000 per employee $100 billion
Number of Adults 65 and Older Requiring Assistance Number in millions Severely Disabled Moderate Disabilities 2010 2020 2030 2040 25 20 15 10 5 0 Source: The Retirement Project, 2007, by Johnson, Toohey and Wiener 7.7 8.9 6.3 13.0 3.3 3.7 5.0 14.5
The Long-Term Care Solution A Framework for Financing Long-Term Care in America
Who is AAHSA?
A non-partisan, non-profit advocacy group representing not-for-profit aging services providers
Members serve more than two million persons daily
Mission to create the future of aging services
Widespread Concern About Long-Term Care Reform 74% Very Important 20% Somewhat Important 94% Very or Somewhat Important Source: National Commission for Quality Long-Term Care, 2007
Widespread Support For A Voluntary Contribution System 46% 31% Source: National Commission for Quality Long-Term Care, 2007
The Long-Term Care Solution
National insurance trust
Broad-based consumer participation
Cash benefits optimize choice
Available to all adults regardless of age
Medicaid as safety net
Premium Prices Example Plan: includes all age 21+, 5 year vesting, $75/day cash benefits for disability (2+ADLs) Source: “Modeling a New Long-Term Care Financing Plan,” The Moran Company, December 2007 Number of Years of Covered Benefits Annual Daily 1 $266 $0.73 2 $465 $1.27 3 $614 $1.68 5 $806 $2.21 Lifetime $1,048 $2.87
Choice Responsibility Fairness
73¢/day = 1 year’s worth of benefits
$1.68/day = 3 years’ worth of benefits
$2.87/day = Lifetime benefits
The Long-Term Care Solution The Choice is Ours
Moral Imperative Fiscal Imperative Political Imperative