IF NOT CLASS (Community Living Assistance Services & Supports Act) — then WHAT?

CLASS, the provision of the 2010 Health Care Reform Act that asked all employers to enroll their employees into a government-run long term care insurance program, has been dissolved.

If you are a business owner, you might be surprised to learn that long-term care benefits now rank as important to employees as life and disability…maybe, in time, even above the healthcare benefits you may currently provide.

Some Myths & Truths about long-term care to consider:


Myth: My employees are not concerned about long-term care benefits.

Truth: 77% of Americans age 30 to 65 think they should know more about long-term care than they currently do.

Myth: Employees do not value this benefit as much as other benefits currently offered to them.
Truth: Employees today, especially if they are Baby Boomers, are vowing to do things differently after seeing their parents’ savings swallowed up by nursing home care, and/or experiencing the stress and financial burden of spouses or children serving as caregivers.

Myth: Medicare will pay for any long-term care needs during retirement.

Truth: Encourage your employees to look at Page 4 of their annual Social Security statement which reads, “Medicare does not pay for long-term care, so you may want to consider options for private insurance”.

Myth: The risk of a financial burden to an employee from benefits an employer currently offers (health, disability, life) supercedes long-term care risks.

Truth: 3 in 900 (.33%) = Odds a having a car accident

21 in 900 (2.3%) = Odds of being admitted to a critical care unit

630 in 900 (70%) = Odds of needing long-term care

Myth: Long-term care is primarily for nursing homes.

Truth: Long term care plans have evolved with much emphasis and greater benefits being placed on staying in your home (even paying family members as caretakers) vs. a nursing facility.

Myth: Long-term care benefits are too expensive.

Truth: Rates are based on age and health (the younger you are and if in good health) the lower the rates will be and why there are many advantages to consider during one’s working years. Also, there are group discounts available, even if offered on a voluntary basis. And, the Wisconsin Partnership Plan offers tax deductions to individuals and business owners who purchase long-term care insurance. The cost may be 100% tax deductible for business owners. Plus, one can purchase “limited pay” policiesso that insurance protection is paid-in-full prior to retirement age.

In the wake of the dissolving of the CLASS Act, however, an urgent question that may remain unanswered is “If not CLASS, then what?

Consider offering Long-Term Care Benefits to your employees. To find out more and explore some options, call me at 920-893-5262.

Paulette Ruminski
Insurance Advisor Coach

Baby Boomers, Medicare and YOU

Dorcas George

Insurance Advisor Coach

The dramatic increase in births from 1946 to 1964 is called “The Baby Boom.” In the USA, 79 million babies were born during those years. Many of us grew up with Woodstock, the Vietnam War, and John F. Kennedy as president.

Listening to the radio this a.m., I heard that most people say “old age” begins at 60. Boomers say 70. I’m not surprised (since I hate to even use a Senior Citizen discount). Remember the silly adage, “Never trust anyone over thirty?” Well, in 2011, the oldest Baby Boomers turned 65 years old, including the first two Baby Boomer presidents, Bill Clinton and George W. Bush. This means the first wave of “boomers” were enrolled in Medicare, the federal health insurance program primarily for people 65 or older but also available for certain disabled individuals.  More than 2.77 million people turned 65 in 2011.* That's 7,596 people aging into Medicare every day! 

We boomers may never admit to being “old” but the fact is that most of us will enroll in Medicare. Enacted in 1965, the program has changed somewhat over the years, but Medicare is still designed primarily to cover acute medical care, and there are still significant gaps in coverage. Most Medicare members also purchase insurance designed to fill in the gaps.

It’s important for boomers to be informed about the details of Medicare, which tends to be more complicated than many insurance policies offered by employers.

Some people delay enrollment, but signing up late can cost thousands of dollars in extra premiums and expenses over a lifetime. The enrollment period for first-time Medicare beneficiaries spans seven months surrounding your 65th birthday.  If you are eligible for Medicare due to disability, your seven-month window begins three months before your 25th month of receiving Social Security disability payments. In either situation, the initial enrollment period is also the best time to sign up for any additional insurance. 

Open enrollment for those who’d like to switch insurance plans will begin Oct. 15, 2012 and ends Dec. 7, 2012. If you make a change during this period, your new coverage will begin Jan. 1, 2013.

It’s a good idea to familiarize yourself each year with the changes in Medicare, so you can make sure that the insurance plan you have continues to be the right one for you.

If you would like to learn more about Medicare and ways to finance the coverage gaps, join my colleague, Paulette Ruminski, and me for a“Medicare and You” class, offered in the spring, summer, fall and winter here at Veritas, and occasionally in other places like Chilton, Fond du Lac, etc. 

Call 920-893-5262 for the schedule or email me at dorcas.george@veritasinvesting.com for more information. 

If you are unable to join us but would like to compare options, we will be happy to meet with you. Our independent status allows us to help you compare several popular plans to see what works best for you. 

 
Neither Dorcas George nor Paulette Ruminski nor Veritas Financial nor its agents are affiliated with the Federal Medicare Program.  The classes mentioned are educational events only and no plan specific information will be shared.  

Long Term Care: Why NOW May be the Time to Act

By Veritas Insurance Advisor Paulette Ruminski

Please take a minute of your valuable time to read this somewhat frank information about a very important topic.

Many of us put off thinking about Long Term Care (LTC). I know it’s not a particularly pleasant topic, and I would prefer to be talking about the beautiful summer months ahead or maybe the World Famous Walldogs coming to Plymouth in June! However, a delay in becoming informed about LTC could be a costly mistake, both short and long term. Why? Because the cost for LTC protection is based on both your age at the time of application (typically the younger you are, the lower the cost), and your health status. Unfortunately, many of us (even in our 50s) are finding that current health factors may not allow us to purchase LTC coverage.

As we go through life we face many risks: auto accidents, home fires, life threatening illness and even death. We usually protect ourselves, spouses, and families against these risks with insurance. Today, however, especially as we are living longer due to the benefits of enhanced medical technology, the overlooked risk is the risk of needing long- term care. In fact, did you know…

o   3 in 900 (.33%) = Odds of having a car accident

o   7 in 900 (.77%) = Odds of having a home fire

o   21 in 900 (2.3%) = Odds of being admitted to a critical care unit

o   630 in 900 (70%) = Odds of needing long term care

There also seems to be a false sense of security that Medicare and Medicare Supplements will cover our long term care needs. Take a look on page 4 when you receive Your Social Security Statement, the annual publication sent to all workers (or at http://www.socialsecurity.gov/). “Medicare does not pay for long-term care, so you may want to consider options for private insurance.”

The emphasis on plans today is not as much about a skilled nursing facility as it is to help you stay in your own home, pay you a guaranteed monthly benefit (regardless of expense), and even pay family or friends to care for you.

Would you like to learn more about your options, including 2011 tax deductibility advantages and your asset protection through the Wisconsin LTC Partnership Program? Please give me a call at 920-893-5262.  If you are in the Sheboygan County area, you may want to attend our one-hour educational seminar, June 16, 2011 at 12:00 noon a.m. (lunch) or 5:30 p.m. (dinner) at Mill Street Grill in Plymouth. Seating is limited, so we would appreciate a call to let us know you will be joining us.