Monday, December 9, 2013

Home Care Usage Explored At Long Term Care Insurance Association Summit


How do people really utilize home care services and ways they maximize limited budgets will be explored at the upcoming National Long Term Care Solutions Sales Summit, the national conference for those who market and sell long term care insurance and linked benefit products.

 According to conference organizers, the American Association for Long Term Care Insurance, this is one of the most necessary topics to be explored.  “Insurance professionals really need an understanding of how consumers utilize services in order for them to market and sell appropriate levels of coverage,” explains Jesse Slome, director of the American Association for Long Term Care Insurance.  “Otherwise they could be advising clients to get too little or too much protection.”

The conference which takes place May 18-20, 2014 at the Westin Hotel in Kansas City is the largest gathering of independent insurance professionals who market LTC solutions.

“The Summit brings together national leaders with experts from across the industry,” Slome explains.  “We have put together a program that will be of interest and value to insurance professionals who have never sold long term care insurance products as well as to the thousands of dedicated LTC specialists.  Each session is specifically designed to deliver information and how-tos that will directly benefit those attending.”

Most consumers mistakenly associated long term care with a nursing home stay the AALTCI director points out.  “The vast majority of new long term care insurance claims begin with a need for care at home,” Slome stresses.  “Long term care insurance today is really nursing home avoidance protection but do people need round the clock care which can be enormously expensive or have they learned to manager their care to meet their level of benefits?  We hope to explore that topic in detail.”

Monday, December 2, 2013

Millennials Confused About Long Term Care Insurance Planning


A marked increase in requests for information and price quotes for long term care insurance by individuals born starting with the early 1980s is the result of confusion regarding the Affordable Care Act, also known as Obamacare.

“We have seen a marked increase in the number of young men and women calling for and requesting online information pertaining to long term care insurance,” cites Jesse Slome, executive director of the American Association for Long Term Care Insurance.  The industry trade group was established to provide educational information to consumers and connect those seeking costs with knowledgeable long term care insurance professionals.

“The ideal age to learn more about long term care insurance is your mid-50s,” Slome explains.  “That is when you are most likely to be able to health qualify for this protection and premiums also are still highly affordable.  Waiting until after age 65 often results in a decline due to health or significantly higher costs.”

Over the past 60 days the Association reports receiving a significant increase inquiries by Millenials.   This is the demographic cohort with birth years from the early 1980s to the early 2000s.  “It’s true that accidents among young people can result in the need for long term care but the risk is extremely small so the increase in interest was a bit perplexing,” Slome notes.

Conversations with many of the younger individuals revealed a general lack of understanding regarding long term care and a confusion between this form of protection and traditional health care.  “The good news is that younger people are seeking information and for the Affordable Care Act to be successful, younger people will need to participate,” Slome adds.  “Planning starts with education and awareness so this all represents a very positive step.”

Monday, November 18, 2013

Combination Long Term Care Insurance Analysis Makes National News


An analysis revealing significant differences between the most popular combination long term care insurance policies helped generate widespread national news this week for the American Association for Long Term Care Insurance.

“We’ve seen an increase number of consumer inquiries about combination life insurance policies offering long term care insurance like benefits,” declares Jesse Slome, director of the American Association for Long Term Care Insurance.  “Our conversations revealed that consumers assumed these policies are all very similar in terms of key components, especially the amount of benefits they ultimately provide.  There is lots of interest in what many call ‘new and improved long term care insurance’ but there can be vast differences in ultimate benefits paid.”

combination long term care insurance policy comparisons from AALTCI

Working with leading independent experts, the Association undertook an analysis of leading combination long term care insurance, also known as hybrid long term care policies.  “We found significant differences,” says Slome. “Some would pay far more if long term care services were needed, others had a higher life insurance benefit that would be paid to heirs.”

A release distribution of the analysis resulted in widespread media attention.  “Several hundred major media picked up the story including Yahoo Finance, The Wall Street Journal’s MarketWatch column, Reuters and some 200 newspapers, business journals and local television stations,” Slome reports.  “There has been a high level of interest in this as more consumers are being told about combo LTC products by their financial advisors.”

The Association’s analysis pointed to the value of getting a comparison from a knowledgeable combination long term care insurance specialist.   ”Not all financial advisors have access to products from multiple companies,” Slome adds. 

Monday, November 11, 2013

Tip: Save 7% On Long Term Care Insurance


There are many ways to make the cost of long term care insurance more affordable than people think, including some little known ways according to the head of the American Association for Long Term Care Insurance.

“If you recently celebrated a birthday, some insurers offer a 30-day grace period before you have the pay the next higher rate,” reports Jesse Slome, executive director of the American Association for Long Term Care Insurance, a national trade group.  “A 60-year old male will pay around $1,330 a year for $200,000 of long term care insurance but when he turns 61, that very same coverage will cost him $1,429 annually, some 7.4 percent more.”

Long term care insurance rates are based on your attained age, Slome explains.  “That is your age when you sign the application for insurance, but some companies offer a very valuable 30-day extension that is well worth noting if you or a spouse just celebrated a birthday.  The savings are locked in and will really add up over the rest of your life.”

The national long term care insurance expert noted that the rules are not consistent among all insurers.  “This is just one more reason that it is vitally important for consumers to work with a knowledgeable long term care insurance professional who can compare the benefits and costs of multiple policies,” Slome notes.  The Association’s yearly analysis of long term care insurance policy costs found that prices for virtually identical coverage could vary by as much as 90 percent.

Monday, November 4, 2013

Long Term Care Insurance Applications Cost Insurers Reports AALTCI


An individual applying for long term care insurance costs the insurer between $400 and $600 even if they are not accepted according to a study from the American Association for Long Term Care Insurance.  The approximate cost to the industry was $200 million in 2012, AALTCI reports.

“Consumers don’t realize that to keep prices as low as possible for all policyholders, insurers take the time to examine health records, conduct face-to-face assessments and all that is costly,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance.  “When the Federal government attempted to launch a plan with minimal to no health requirements, their own actuaries set premiums so high that they abandoned the program acknowledging that costs were higher than what almost anyone would pay.”

Slome noted that the Association undertook an informal study of costs related to long term care insurance applicants following a discussion with a reporter.  “Like so many consumers we speak to, this individual was surprised to learn how many individuals who apply for long term care insurance are declined due to health reasons,” Slome noted.  “We wanted to substantiate the fact that this cost insurers hundreds of millions of dollars each year.”

According to the Association’s annual research into buyers and claimants, some 25 percent of applicants between the ages of 60 and 69 are declined by insurers after they apply.   The rate is significantly lower at earlier ages.

“Each insurer has its own health underwriting practice that can include extensive review of the applicant’s medical records as well as a face-to-face interview,” Slome explains.  “The goal is not to decline people but just one additional unhealthy person within a pool of 100 insureds could necessitate a significant price increase that is ultimately shared by all policyholders.

Some 322,000 individuals obtained individual long term care insurance protection last year according to the trade group.  “The ideal time to start to look into this protection is between your mid-50s to mid-60s,” Slome recommends.

Monday, October 28, 2013

Women Can Still Pay Same As Men For Long Term Care Insurance In 25 States


In roughly half of the country, a women will still pay the same for long term care insurance as a single man.  However, the opportunity to save will not last forever experts explain.

long term care insurance costs for women, map shows low cost options

“This Spring, leading insurers started introducing new policies that charge single women an average of between 40-and-60 percent more than a comparably aged single man,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance.  “It is a progressive state-by-state roll-out however, and there are still 25 states where single women can lock in rates equal to those paid by men.”

According to an Association study, policies utilizing unisex pricing are still available in 25 states.  ” California, Florida and New York are some of the larger states where the savings advantage still exists for single women,” Slome notes.  “However, it is just a matter of time until their State Departments of Insurance get around to reviewing and approving the ‘sex distinct’ policies for sale to the public.  At that time, the current policies are no longer offered for sale.”

The organization’s study found that some states have approved one insurance company’s new policy but not all.   “There has always been a significant price difference between the rates charged by insurers,” Slome adds.  But now getting a cost comparison is extremely important for single women.”   A review of typical levels of coverage found that a 55-year-old single woman could expect to pay anywhere from 40-to-60 percent more than a single man.

“Women account for two-thirds of all long-term care insurance claims and benefit dollars paid,” Slome reports.  “That’s why insurers who paid out $6.6 billion in benefits last year recognize the need to charge women more, just as men and smokers pay more for life insurance.”

The Association has produced a map depicting states where at least one major long-term care insurance company still offers unisex rates.  It can be accessed at www.aaltci.org/women.

The American Association for Long-Term Care Insurance is the national trade organization focused on educating individuals about the importance of planning for the risk of long term care.  In 2001, the organization established Long-Term Care Awareness Month, a national effort that has been recognized by Congressional Resolution as well as by a number of States.

Link to webpage with long term care insurance costs for women map showing states where unisex rates still apply.

Monday, October 21, 2013

Association Makes Long Term Care Insurance Awareness Month Logos Available


November has been declared Long Term Care Awareness Month to support increased awareness and education surrounding the importance of planning for the risk of and the role played by long term care insurance.



“Long Term Care Awareness Month provides an opportunity for all those involved in the various industries to focus on creating heightened awareness,” shares Jesse Slome, executive director of the American Association for Long Term Care Insurance, the long term care insurance trade group.   Slome is the creator and founder of the Awareness Month program, first established in 2001.  The event was recognized by a Congressional Resolution and has been since proclaimed by governors and mayors across the country.

As part of AALTCI initiatives, the organization published a special insert within copies of November’s Kiplinger’s Personal Finance magazine.  “The special insert addresses strategies and provides examples of ways to save on long term care insurance, an important option that is again gaining recognition in light of fewer government options,” according to Slome.

Long Term Care Awareness Month is primarily designed to be a grassroots effort.  “We know that many companies undertake special programs and certainly insurance agents do what they can to use the opportunity to create awareness,” Slome add.  “We know many top long term care insurance specialists will offer a free, no risk evaluation of risk, needs and costs,” Slome shared.

Monday, October 14, 2013

New Long Term Care Insurance Guide For Consumers Published


Strategies to reduce the cost of long term care insurance along with helpful tips for consumers have been published in a new consumer guide from the American Association for Long-Term Care Insurance.

long term care insurance free guide with savings tips


“The new guide addresses many of the questions commonly asked by consumers,” shares Jesse Slome, executive director of the long term care insurance trade group.    ”Individuals are increasingly aware of the need to think about long term care planning but they want to have an idea of what protection costs and smart strategies for buying the right amount of coverage at the best possible price.”

The guide, originally published in this month’s Kiplinger’s Personal Finance magazine addresses strategies for when to begin planning, options to deal with the risk of rising costs for care and provides examples of ways to save.  “Selecting a 60-day deductible period for your policy will reduce premium costs by nearly 15 percent yearly, while selecting a 90-day deductible provides an even greater savings,” according to Slome.

“One question we are often asked is when is the best age to start looking into long term care insurance,” the expert notes.  “The younger you are the more likely you will qualify for good health discounts as well as obtain lower rates.”  The guide provides industry average costs for buyers from ages 40 up to age 65.
The guide can be read free of charge along with four prior consumer guides offered on the Association’s website at www.aaltci.org/long-term-care-insurance-costs. No sign-in or personal information is required to read the guide.

Monday, October 7, 2013

Long Term Care Insurance Association Comments On Commission Report


The director of the American Association for Long Term Care Insurance commented on the report published by the Commission on Long-Term Care.

To read the Commission on Long Term Care Commission  report click this link or go to:

http://www.aaltci.org/wpdownloads/commissionltc.pdf .

The Commission was established under Section 643 of American Taxpayer Relief Act of 2012 (P.L. 112-240), signed into law January 2, 2013.   Fifteen members each were appointed by the President of the United States, the majority leader of the Senate, the minority leader of the Senate, the Speaker of the House of Representatives, and the minority leader of the House of Representatives.

According to the 92 page report just released, the statute directed the Commission to: “…develop a plan for the establishment, implementation, and financing of a comprehensive, coordinated, and high-quality system that ensures the availability of long-term services and supports for individuals in need of such services and supports, including elderly individuals, individuals with substantial cognitive or functional limitations, other individuals who require assistance to perform activities of daily living, and individuals desiring to plan for future long-term care needs.”

“The report provides a very detailed and comprehensive overview of the long-term care servicing and financing issues facing Americans,” says Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “With little time and in today’s politically charged environment, it was unlikely the Commission would achieve anything more.”

Slome noted that those anticipating significant changes or a recommendation for a new taxpayer-supported social insurance program to address long-term care may be disappointed.   “The bipartisan support for approval of the report is evidence that there is clearly no groundswell for another attempt at a government option along the lines of the CLASS Act,” Slome added.  Five Republicans and four Democrats voted in favor of the final report that failed to recommend a new national insurance program for long-term care services.

“The Commission recommended creation of an Advisory Committee,” Slome shared.  “We look to be part of the ongoing dialogue about furthering a public / private solution.,” Slome notes.  “There is no universal solution.  Both public entities and private insurers have a role to play and that is positive news for the long term care insurance industry.”

Monday, September 16, 2013

Study Highlights Need For Increased Long Term Care Insurance Planning


A just-released national study reveals the enormous toll impacting the overwhelming majority of adults who are caring for an aging parent or spouse.

“Unpaid caregivers provide $450 billion worth of care every year to someone who is ill, disabled or aged,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national long term care insurance industry trade group.

“Caregiving for a family member today is almost a requirement unless you have the savings or assets to pay for outside help,” Slome explained.  “People wrongly believe that Medicare pays for the type of care which is called long-term care but the reality is that Medicare pays very little of the cost and Medicaid is a severely impacted welfare program for the poor.”

The national long term care insurance expert pointed to a just published study ‘Retirement Care Planning The Middle Income Boomer Perspective” that surveyed adult caregivers between the ages of 49 and 67 with household incomes of between $25,000 and $75,000.   The study found that caregiving cost more than expected, impacted their existing relationships and took a more physical toll than previously thought.

“The reality today is that more Americans will live into their 90s and 100s than ever before and very few have any plan in place for living to 100,” Slome declared.  “We call today for heightened education and awareness as an important first step to addressing the problem that is facing millions of families.  Without a solution, families will pay the heaviest price as will taxpayers who will be expected to foot the bill for the neediest who require care.”

“People need to understand that there are only three options when care is needed,” Slome adds.  “Turn family members into caregivers, pay for outside care from your savings or convert assets, or have some long term care insurance to pick up some of the costs.”  The executive noted that insurance is only a viable option for those who can health qualify for coverage.

“Insurance companies need to keep long term care insurance costs as low as possible so they only will offer coverage to those who are in relatively good health when they apply,” Slome explains.  “We hate having to tell people with health issues or those who wait until their 70s or 80s that insurance is probably not an option for them.”

Monday, September 9, 2013

Comparing Asset Based Long Term Care Insurance Options Is Vital


Consumers considering asset based long term care insurance options or life insurance with long term care benefits do not understand the significant differences reports one of the nation’s leading experts.

“The differences can amount to tens and even hundreds of thousands of dollars of future benefits,” declares Jesse Slome, executive director of the American Association for Long Term Care Insurance.  “People wrongly assume these policies are virtually identical when nothing could be further from the truth.”

While asset based long term care insurance products offering a combination of life insurance and long term care benefits have been around for many years, numerous new policies have been or are being introduced Slome acknowledges.  “Roughly 90,000 of these asset based LTC policies were sold in 2012,” Slome reports.  That compares to roughly 330,000 traditional long term care insurance policies.

Slome shared ways to judge if comparing policies is worthwhile.  “If you are married and plan to buy policies for both husband and wife, there can be considerable differences in the future benefit amount from one insurer to the next,” Slome shared.  “Many of these policies today are marketed by financial professionals who only offer one or two policies and are not as familiar with the important differences.”

Future guarantees can vary among different asset based LTC products Slome notes.  “In future years you don’t want to find out that what you thought was guaranteed isn’t,” Slome says.   “All of these small but very important factors make it increasingly important to compare because you only purchase these policies one time.”

Monday, September 2, 2013

Association Addresses Long Term Care Insurance Fallacious Facts


A significant number of news and online reports addressing long term care insurance reference fallacious information that does not serve consumers or the industry says the director of the American Association for Long-Term Care Insurance.

“It is important for consumers to understand the importance of their need to address the very real risk of needing long term care but misleading or deceptive information is in no one’s best interest,” declares Jesse Slome, executive director of the national long term care insurance industry trade group.  Slome was sharing insights with professionals who market long term care insurance.

“I keep a rogues’ gallery of misleading information that repeatedly appears in news articles,” Slome shared with the group.   ”They may all be true but often they have zero relevance to long term care insurance and linking the two together is not appropriate way to appropriately educate the public.”  Slome shared three fallacious facts:

“It’s common to read that 40 percent of those needing long term care are under age 65,” Slome says.  “This is a government statistic which includes everyone born with birth defects and severe disabilities, mental issues and other issues.  There is no relevance to long-term care insurance which requires applicants must health qualify for insurance coverage.”

“People start buying long term care insurance in their 50s to address the real risks of needing care as a result of aging, dementia or conditions that generally start after age 70,” Slome explained.  “Of course, accidents and disabling diseases can begin at younger ages but not to the degree the 40 percent statistic implies.”

“A second fallacy is that one needs to protect the full cost of care by showing large scary numbers,” Slome says.  “You see reports that say three years in a nursing home will cost $200,000 and that may be true but most people buy long term care insurance to receive care at home.  Those costs can be far more affordable and every article neglects to mention you should use some of your savings to pay some of the costs.”

According to the long term care insurance expert, over two-thirds of new claims begin with home care.  “You’re likely to receive ‘wake up – tuck in’ services for a few hours which can be fully covered by a modest long term care insurance policy,” Slome adds.  “And, don’t overlook retirement income including Social Security which can be used to pay some of the cost augmented by your insurance.”

Slome noted that many articles overstate the cost of long term care insurance.  “Reporters tend to talk to the same small group of experts, often those who have wealthy clientele or they quote industry averages which mislead many into thinking coverage is expensive,” Slome concluded.  “It can be if you are older, if you have health conditions or if you buy a Cadillac policy.  But it does not have to be and half of all buyers pay less than the average, some significantly less.”

Working with an experienced long term care insurance professional is advantageous because both costs and policy provisions vary significantly.  “We define a specialist as someone who has helped 100 or more people get long term care insurance,” Slome explained.  “A consumer can pick who they work with but those we speak with share that specialists provide them with far greater information relevant to their situation and typically better choices for options.”

Monday, August 26, 2013

2013 Long Term Care Insurance Sales Trends Interpreted


Simplistic reports of data regarding long term care insurance policy sales result in a misunderstanding of market trends says the director of the American Association for Long-Term Care Insurance.

“During the first half of 2013, nearly 100,000 individuals purchased traditional long term care insurance policies and tens of thousands purchased life insurance and annuity products that provide long term care benefits,” declares Jesse Slome, executive director of the national long term care insurance industry trade group.  Slome was responding to questions by executives who market long term care insurance following a report that industry sales had declined 20 percent during the second quarter of 2013.

“Several long term care insurance carriers are reporting sales increases of 20 percent or more, and no one cites that,” Slome shared with the group.  “Others experienced sales growth of between 10 and 20 percent.  Overall sales were down due to several factors that impacted the first half of the year.”  Among those, Slome noted the failure of California’s Department of Insurance to approve newer policy filings had impacted sales.  “When the largest state in the nation has few options available, sales are going to be impacted.”

The national long term care insurance expert pointed to the continuing trend among insurance companies to be more selective in terms of accepting applicants.  “The knowledge gained over the past 20 years helps insurers understand long term health risks and to keep policy costs as low as possible which is what consumers want.  As a result, they will reject more applicants with existing health issues,” Slome explains.  “That reduces the number of overall policies sold.”

“Long term care is a universal issue facing Americans who are now living longer lives than ever but long term care insurance is not the universal solution,” Slome stated to the executives.  “There is a very defined market for this product but that is limited to those who can afford the premiums as well as meet the health qualifications when they apply.”

“Those who advocate a new national long term care insurance program as part of Medicare have yet to make a proposal that has any semblance of reality,” Slome concluded.  “We don’t see the American public or politicians for that matter ready at this point to add a new health care-related mandate or increase taxes, which leave families only three options; turn family members into caregivers, pay for care or have insurance to pay some of the cost of care.”

Monday, August 19, 2013

Long Term Care Insurance Money Back Provisions Available


For consumers concerned that they won’t use the long term care insurance policy they’ve paid for selecting a money back option can be attractive reports the American Association for Long-Term Care Insurance.

Long term care Insurance is the only form of insurance protection where consumers seem concerned about not having a claim,” declares Jesse Slome, executive director of the national long term care insurance industry trade group.  “I’ve never met anyone who regretted their house not burning down or avoiding a major car accident because it meant they wasted their home or car insurance payments.”

Slome notes that when it comes to long term care insurance costs people seem to have a mindset that they’ve wasted dollars if they never have a claim.  “Of course, ask them if they’d really like to have a stroke or be diagnosed with Alzheimer’s and the answer is never, but even that does not overcome this mental block that continues to exist in many,” Slome points out.

The Association director explained that policies offer an option that will return premium dollars paid.  “The return of premium option does exactly what it says,” Slome acknowledged.  “It returns premiums, typically less any claims costs but the policy provisions can vary from one insurer to the next.”  The Association analysis of costs for good coverage for a 55-year-old couple found that the option added roughly 62 percent to the cost of coverage.

“You can have the don’t lose it if you don’t use it option,” Slome explained with a traditional long term care insurance policy.  He notes that few people end up selecting the option.   “Often there’s one spouse, typically the husband who is adamant that he’ll never need care and that insurance is a waste of money,” Slome says.  “In those situations, the return of premium option is a way to take that objection off the table.”

Monday, August 12, 2013

Long Term Care Insurance Not Covered By Obamacare Provisions


Long term care insurance is not included under provisions passed by Congress as part of the Affordable Care Act also known as Obamacare.

“We are getting an increasing number of calls from consumers wanting to know how to apply for long term care insurance once insurers must accept pre-existing health conditions,” explains Jesse Slome, executive director of the long term care insurance industry trade group.  “Unfortunately I have to tell them long term care insurance is not included under Obamacare and is only available to those who can meet health requirements.”

Consumers are expected to start investigating insurance plans available under Obamacare next month and open enrollment starts October 1st.

“The Department of Health and Human Services abandoned any plans to implement the provision calling for a voluntary long term care insurance program which would have allowed those with existing health insurance to apply,” Slome notes.  “They found the monthly premiums they’d have to charge would have been far too expensive for people to afford so they walked away and allowed Congress to repeal the CLASS Act.”

“There are about a dozen insurance companies currently offering private long term care insurance,” says Slome.  About eight million Americans have some form of protection against the significant risk of needing long term care.  “If you have some existing health conditions, we can advise whether pursuing a long term care insurance policy will even be possible.”
The American Association for Long-Term Care Insurance advocates for the importance of long term care planning and supports insurance professionals who market the complete range of planning products.

Monday, August 5, 2013

Life Insurance With Long Term Care Insurance Benefits Studied


Universal life insurance policies with optional long term care insurance are gaining consumer interest according to new research by the American Association for Long-Term Care Insurance.

“We are definitely seeing heightened interest among consumers with available savings that they can leverage to protect against the high costs associated with needing long term care,” explained Jesse Slome, executive Director of the American Association for Long Term Care Insurance. “These policies are not for everyone and there can be significant differences between policies being offered today.”

According to a study by the Association more than half of buyers of life insurance with long term care benefit option policies were under age 65. “Some companies have imposed age restrictions on these policies and that could be pushing down the age of average buyers,” Slome explained. “It’s also likely that more stockbrokers and financial planners are starting to recommend these products to their younger clientele.”

A growing number of companies now offer life insurance policies that offer long term care benefits according to AALTCI. “You used to have one or two major players but over the past few years several large insurance companies have introduced new products,” Slome noted. “Consumers have the misperception that all policies are identical but we see some important differences that can vary. The difference in future benefits can be quite significant.”

The AALTCI study reports that 56 percent of buyers in 2012 were age 64 or less.

Monday, July 29, 2013

Optimistic Outlook For Long Term Care Insurance Companies Shared


A rise of one percent in investment return on fixed interest instruments could generate an additional $100 million or more in annual revenue for insurance companies with blocks of long term care insurance.

“The long period of historically low interest rates sustained by the Federal Reserve has impacted long term care insurance companies,” explained Jesse Slome, executive Director of the American Association for Long-Term Care Insurance.  “No one has really thought about the outlook when interest rates rise again.”

Slome was discussing the economic outlook with executives who market long term care insurance.  “When interest rates rise, insurers will earn more which they will need to pay claims and also to meet profit objectives for their long term care insurance product lines.  There is a real reason for optimism in our industry because we are already seeing interest rates rise.”

“The impact is not immediate but will positively effect revenue over time,” explains Claude Thau, a leading industry expert in Overland Park, Kansas.  According to industry professionals, when the portfolio rate earned on a company’s in-force business increases by one percent, a long-term care insurer with $10 billion in reserves will gain roughly $100 million of additional revenue annually.   “This amount is prior to any federal corporate taxes that may be due on that additional income,” Slome clarified.

According to the Association the two largest long term care insurers include Genworth Financial Inc., with over 1.1 million policyholders and some $9.96 billion in policy reserves.  John Hancock, owned by Canada’s Manulife Financial Corporation, has two companies with long term care insurance.  The two entities insure over one million individuals and have roughly $8.0 billion in policy reserves.  “There are many other large insurers who will benefit as rates rise again,” Slome shared.

Established in 1998, the American Association for Long-Term Care Insurance advocates for the importance of long term care planning and supports insurance professionals who market the complete range of planning products.  The Association makes available free consumer guides providing the most current information as well as tips to reduce the cost of long term care insurance.

Monday, July 22, 2013

Long Term Care Insurance Association Report Gains National Recognition


A report citing the largest open long term care insurance claims has helped portray the industry in a positive light.

“Many of the negative media reports about long term care insurance are based on partial and even inaccurate information,” declares Jesse Slome, executive director of the long term care insurance industry trade group based in Los Angeles, CA. “Telling the story of how insurers paid $6.6 billion in claims last year will hopefully make people aware and comfortable that this protection is important and does indeed protect millions.”

Earlier this week the Association published the findings of its annual study of the largest open claims. The report shared that the largest open female claim had reached $1.8 million while the largest open claim by a male had reached $1.3 million. “Of the 264,000 claimants paid benefits last year there are large and small claims,” Slome acknowledged. “Sharing information on the largest will hopefully show people that the risk is real and the protection can be highly beneficial.”

The Association’s awareness campaign has already generated media coverage with the news item appearing on the website of The Wall Street Journal, as well as on CBS news and Yahoo Finance, one of the more popular financial websites. “In addition, we have seen the news report on several hundreds websites hosted by local newspapers, regional media and local television stations,” Slome confirmed.

“People who own long term care insurance need to rest assured that insurers pay claims to the tune of about $18 million a day,” Slome states. “People who have no plan in place for dealing with the real risk of needing long term care need to know this protection can help spare their family the emotional and financial toll associated with their care.”

Monday, July 15, 2013

Insurance Commissioners Discuss Long Term Care Insurance Regulation


Five audio recordings of sessions involving state insurance commissioners and staff discussing long term care insurance regulations are available online reports the director of the American Association for Long-Term Care Insurance.

“The National Association of Insurance Commissioners (NAIC) Senior Issues Task Force meets regularly to discuss important regulatory matters pertaining to this important industry,” explains Jesse Slome, executive director of the long term care insurance industry trade group.  “Recordings of the sessions are made available online and are now ready for interested parties to listen to.”

Slome shared anyone taking the time to listen to these audios will realize how enormously complex a topic long term care insurance is.  “Much of the discussion focused on important matters like rate increases and even the insurance commissioners shared their approaches are all over the board”, Slome shared with insurance agents participating in a regular executive level chat.  “If you listen to the discussion it becomes very clear how enormously complex the issue is.”

The participants in the meeting are very bright, committed individuals Slome noted who know they must take a balanced approach in their efforts to both protect consumers as well as maintain a market for private companies offering protection.  “At one point one of the Commissioners shared the recognition that they had no incentive to run companies out of the business,” Slome shared.  “If Medicaid is to be saved as a taxpayer paid program for the poor, States realize having private individuals be responsible by planning is crucial.”

The long term care insurance industry is still relatively young Slome notes.  “The first policies were designed and marketed in the 1980s but it took years before the product really caught on.” Slome added.  “Much has changed in the past 20 years in terms of health as well as economic demography and so the long term care insurance providers are working with insurance commissioners to keep improving solutions that serve the public and taxpayers who today bear the majority of the cost of providing long term care.”

Those interested in listened to audios from the June 10-13, 2013 NAIC Task Force can visit the NAIC’s website.

Monday, July 8, 2013

Dave Ramsey’s Long Term Care Insurance Recommendation Addressed


Dave Ramsey’s recommendation that consumers consider long term care insurance is welcomed says the director of the American Association for Long-Term Care Insurance who notes Ramsey is mistaken in several critical areas.

“Dave Ramsey is one of America’s most listened to financial radio talk show hosts and we welcome hislong term care insurance expert Jesse Slome, AALTCI recommendation that consumers look into long term care insurance planning,” declares Jesse Slome, executive director of the long term care insurance industry trade group.

Slome shared Ramsey’s post to a reader inquiry that read: “I’m a strong proponent of long-term care insurance once a person turns 60. Prior to that age you have less than a one percent chance of spending time in a nursing home, so I wouldn’t spend a dime on it until then.”

Ramsey shared the rationale for his age recommendation by writing, “A lot of agents and companies try to sell long term care insurance to people who are 40 or 50 years old, and I just don’t believe in that stuff. But once you hit age 60, your chances of using it increase almost daily. At that point, it’s a smart buy, and you’ll get a great return on the investment.”

“This is where the great disconnect comes in and we’d welcome the chance to better educate Mr. Ramsey so he can best advise his listeners,” Slome shared.  “Long term care insurance requires applicants meet health qualifications which become more difficult after age 60.  In fact, a quarter of applicants between ages 60 and 69 are declined coverage when they apply because of health conditions.”  The percentage of declined applications increases to almost 50 percent after age 70.

“Setting the bar at age 60 will cause many of Dave Ramsey’s listeners to wait to look into long term care insurance and find they are uninsurable,” Slome cautioned.  “Today, one can buy newer policies in your 50s that lock in your health insurability and have features that allow you to add to coverage at older ages.  That is smarter planning we hope one day to make Mr. Ramsey aware of.”

Furthermore, Slome noted that Ramsey’s connection with nursing home coverage is ‘old world’.  “The majority of long term care insurance today pays for home care,” Slome notes.  “So much has changed except for the advice often shared by many and we will write to Mr. Ramsey with the hope of sharing some of the more current information.”

Monday, July 1, 2013

Hybrid Long Term Care Insurance Solutions Explored By Trade Group


Two new long term care insurance audio programs comparing and detailing hybrid long term care insurance options were made available as part of the nation’s largest long term care insurance online resource center.

“There is increasing interest in hybrid long term care solutions including a growing number of life insurance options,” explains Jesse Slome, director of the American Association for Long Term Care Insurance.  “It is important for insurance and financial professionals to understand how the various hybrid LTC options work so they can compare and better educate their clients and prospective clients.”  Hybrid LTC products include life insurance that pay accelerated benefits should the policyholder need qualifying long term care services.

The new audio programs were added to the Association’s Online Long Term Care Insurance Learning Center that currently features nearly 100 training audios.   Each of the two new audios is approximately 20 minutes and features an interview with Shawn Britt, Director, Advanced Consulting Group for Nationwide Financial.

“There are significant differences between life insurance policies that offer long term care insurance-like benefits,” Slome explained.  “Some offer more dollars should you need long term care while others offer a higher death benefit if you don’t.”  The second audio focuses on ways to market and approach the differences to consumers.  “Shawn uses a great analogy to a fruit basket as a way of visually describing the differences and the different approaches to both men and women.”


Monday, June 24, 2013

Best Ages To Buy Long Term Care Insurance Described


The sweet spot for looking into long term care insurance is between age 54 and age 64 according to the head of the American Association for Long-Term Care Insurance.

“Identifying an age bracket will encourage more consumers start the process of thinking about ways to plan for their future risk of needing long term care,” declares Jesse Slome, director of the American Association for Long Term Care Insurance.  “And, there are many reasons why the decade between your mid-50s and mid-60s is the ideal time.”

The national long term care insurance expert was sharing the importance of planning.  “Let’s start with why we recommend starting prior to turning 65,” Slome shared.  “At age 65 people qualify for Medicare which qualifies them for a variety of health screens and tests.  These tests often identify conditions that will disqualify them for long term care insurance and could well be the conditions that heighten their need for future care.”

As a result, Slome admonished consumers to look into long term care insurance prior to applying for Medicare.  “Your health when you apply is far more important than many people know,” Slome advised.  “Some insurers today will not accept you if you have previously been declined by another insurer; so if you have some conditions or take more than basic prescription medications, it is vital to shop your health.”

Slome advises working with a knowledgeable long term care insurance specialist appointed with between four and six insurers.  “If I needed surgery, I’d want a surgeon who had performed the operation successfully a hundred times before and knew everything about the various techniques,” Slome shared.  “A specialist will know the acceptable health conditions required by each insurer as well as the all-important small print contained in their contracts”

A common mistaken belief held by consumers is the belief that going direct to an insurance company will save money.  “Insurers do not sell long term care insurance directly to consumers and visiting their website will only connect you with someone they know favors their particular policy,” Slome concluded.  “That may be the best option for you but it really pays to work with a specialist who has less of a bias and more of your interest in mind.”

Monday, June 17, 2013

Long Term Care Insurance Alternate Plan Of Care Addressed


Confusion regarding many protections and beneficial options provided to those who purchase long term care insurance arise following major news stories.

“A recent article in The New York Times has generated an increase in the number of calls from consumers who already purchased or may be interested in purchasing long term care insurance,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance.

The executive addressed a concern regarding the “alternate plan of care” benefit. The benefit provides insurers with a degree of optional flexibility that can benefit both the insurer as well as the policyholder. The Times story noted that an insurer was no longer honoring those provisions.

Slome pointed to comments shared by Phyllis Shelton, author of Protecting Your Family With Long-Term Care Insurance. Shelton noted that the alternate plan of care is a wonderful and important addition to any policy. But like many good things in life, it has been abused and sometimes misrepresented by well-meaning people who didn’t understand it.

“Alternate plan of care is intended to make a way contractually for a long-term care insurance carrier to pay outside the contract when it is cost-effective and makes sense medically for the patient,” Shelton notes. ”The lawyer quoted in this article is incorrect in his statement when he says this provision wasn’t sold in a way that said the insurance company has the right to approve how this provision is used. The policy language is very clear that the insurance company, the doctor and the family must agree on how this provision is used. It was never intended to provide extensive home care benefits to someone who just purchased a facility-only policy."

The provision has been used to pay for new services that come along, for example care in an assisted living facility from a policy that was sold to pay only for care provided in a skilled nursing home. Shelton noted her experience with a long-term care insurance carrier that utilized the alternate plan of care provision to buy a blind woman a seeing eye dog for $3,000 that allowed her to stay home while her daughter was working.

“We commend The Times for its continued efforts to cover important issues and the article did report the Association’s information regarding the $6.6 billion in claims paid last year,” Slome acknowledged. “You won’t see articles about the 264,000 people who were paid benefits last year and how that helped their lives and their families, so we hope that’s a story the long-term care insurance industry will tell.”

Monday, June 10, 2013

Long Term Care Insurance Is Not Changed By Obamacare


Obamacare will not impact long term care planning and makes no changes to long term care insurance.

According to Jesse Slome, executive director of the American Association for Long-Term Care Insurance, a national trade group, consumers have the mistaken belief that Obamacare changes taking effect in 2014 will do everything from mandate insurers accept all new long term care insurance applicants to the mistaken belief that Medicare will now pay for all costs related to long-term care.

“We now regularly receive calls from consumers asking what companies will offer long term care insurance starting next year to those who already have been diagnosed with serious health issues or Alzheimer’s,” Slome explains. “Obamacare does not change long term care insurance and insurers will continue to require that applicants meet health standards prior to being accepted for coverage.”

The national long term care insurance expert also notes that consumers calling the Association’s headquarters in Los Angeles have the mistaken belief that in 2014 Medicare will be expanded to cover long term care benefits. “A Congressional commission has been formed to examine all options and issue a report but right now there are no changes and none likely to happen for many years, if then,” Slome adds. “In fact, the debate about curtailing Medicare and Medicaid expenditures will likely heat up as part of the 2016 Presidential election so talk of cuts in benefits and increases in taxpayer contributions is far more likely a future outcome.”

Slome advised individuals in their 50s and 60s to start thinking about long term care planning. “Chances are you are going to live a long life and that will entail needing long term care at some point,” he declares. “Your 50s and 60s are the sweet spot when you have the most time to build a plan which may or may not include long-term care insurance.”

Monday, June 3, 2013

Lower Long Term Care Insurance Cost By Raising Deductible


The cost of long term care insurance can be reduced by as much as 40 percent annually merely by selecting a longer deductible period.

According to an American Association for Long Term Care Insurance analysis of policies offered by leading insurers, the selection of a deductible period, technically referred to as the Elimination Period, plays a significant role in determining the cost of long term care insurance protection.

The trade group studied costs for policies purchased by a typical couple where both spouses are age 55. Selecting a 90-day deductible period reduced yearly premium costs between 12 and 15 percent according to the AALTCI report. Longer deductible periods, the study found, can reduce yearly costs by as much as 35-to-40 percent.

“To lower costs of our car, home and even our health insurance many people select a deductible,” explains Jesse Slome, one of the nation’s leading long-term care insurance experts. “They understand that if a claim occurs, they will have to pay some of the cost before their insurance kicks in and they have savings and other forms of income which they can access.”

Slome notes that too many consumers believe long term care insurance needs to pay for what he calls ‘first dollar – last dollar coverage’. “When they see how these ‘pay every possible claim’ policies cost, they are shocked and decide that all long-term care insurance is too expensive.”

The trade group advocates considering a co-insurance approach to long term care insurance planning. “It’s likely you can afford to pay 90-days of claims especially since many involve just nominal amounts of care,” Slome says. “Selecting a 90-day deductible compared to a 30-day deductible will reduce your annual cost by 12-to-15 percent.”

According to the study, selecting a 365-day deductible versus a 30-day time frame will reduce the cost by as much 40 percent. “A one year deductible is not permitted in all states and both the premiums and savings vary from one long term care insurance company to another,” Slome adds.

Monday, May 27, 2013

Women Can Still Avoid Long Term Care Insurance Rate Increase


While several of the nation’s largest long term care insurance companies have started charging women more than men, there is still time for women on their own to obtain lower cost coverage from leading insurers that have not yet adopted sex-distinct pricing.

“The window of opportunity for women in their 50s and 60s is closing,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance. “Women who are single, divorced or widowed are advised to act sooner rather than later.”

The national trade group released an analysis report of how the adoption of sex-distinct pricing is impacting long term care insurance costs. According to the organization’s studies, a single woman can now pay as much as 80 percent more than a same aged single man. ”Long term care insurance companies are charging women more because women account for two-thirds of all claims and the vast majority of the $6.6 billion paid out yearly in long term care insurance claims,” Slome explains.

Not all insurance companies have adopted the sex distinct pricing. “Other major long term care insurance companies have already filed new policies that will charge women more and once approved, they will withdraw their current offerings,” Slome shared with a group of Midwest insurance professionals.

According to the Association study, a 55-year old woman purchasing $164,000 of current protection with the option to increase her coverage in future years would pay about $1,800 yearly for coverage from an insurance company utilizing the new sex-distinct pricing. “The same amount of coverage from one of the highly rated insurers still utilizing equal rates for men and women would cost under $1,000 yearly,” Slome reports. “That is a significant savings to lock in.”

The national long term care insurance expert shared concerns raised by consumers calling the trade group regarding the risk of future rate increases that would specifically target single women. “The risk of future rate increases for women purchasing cheaper policies still utilizing unisex pricing exists but new state imposed regulations require that insurers show significant increases in claims, claim costs or factors not related to profitability,” Slome notes. “Sex distinct pricing is new territory for both insurers and state regulators but what might happen is an insurer requests rate increases for both men and women, requesting a larger increase for women. It would then be up to the state to approve the difference.”

Monday, May 20, 2013

CalPERS Long Term Care Insurance Presentation


A new presentation targets some 60,000 members of the California Public Employees’ Retirement System who are facing rate increases for long term care insurance policies purchased.

“We are hearing from a growing number of CalPERS long term care insurance policyholders who are confused about what to do,” explains Jesse Slome, executive Director of the American Association for Long-Term Care Insurance. The organization has created a new online presentation designed to outline considerations and next steps and to share pricing for long term care insurance available currently to California residents.

The impacted long term care insurance policies tend to offer lifetime or unlimited benefits coupled with an annual five percent compounded increase in daily benefit amounts the Association director notes. “This was the Rolls Royce level of coverage when they purchased it and is not even available from most insurers today,” Slome notes.

According to the Association, a 65-year old single individual applying for $547,500 of long term care insurance coverage without the future five percent inflation growth option will pay between $4,200 and $8,200 a year. Similar level of immediate coverage including the five percent annualized benefit growth option will cost between $10,100 and $19,900 per year according to the long term care trade group.

“Individuals with CalPERS long term care insurance policies facing rate increases have time to decide and they can avoid paying more by accepting some of the changes being offered,” Slome notes. “Inflation is not a factor so why pay to have your benefits increase if you have a pension or Social Security that could pick up some of the cost? In the end, it makes little sense to even try to compare what you have with new coverage that will cost a whole lot more assuming g you can even health qualify.”

Monday, May 13, 2013

Medicaid Enrollment Surge Concerns Long Term Care Insurance Expert


Some 54 million Americans will be enrolled in Medicaid in 2013 an increase from 45 million in 2008, a growth that concerns one of the nation’s leading long term care insurance experts.

“Medicaid is a valuable and very necessary safety net for America’s poor and less fortunate and it is by far the largest payer for long term care expenses,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance. “But, the more who need, the less this taxpayer-paid program will be able to provide and those who have means need to consider what that means to them.”

In a conference call with consumers earlier today, Slome noted that the data reported in yesterday’s Wall Street Journal noted that food stamp use is swelling, as is Social Security disability recipients. “In 2008 there were around 9 million recipients and in 2013 there will be nearly 11 million, and there is a definite limit to what programs can provide in the face of greater need,” Slome noted. “This will be especially true looking ahead as millions of Baby Boomers reach the age when they need long-term care services without any savings or assets to pay for care.”

“If you are in your mid-to-late 50s, have some savings and assets, own a house and have a job then long term care planning is something everyone needs to do,” Slome advocated. “This is when you’ll have the most options available to you, including long-term care insurance which isn’t a universal solution but certainly can be an important part of avoiding a future need for government assistance.”

“It’s a mistake to look at long-term care insurance as a means of paying the full cost of long term care expenses,” Slome shared with the consumers. “You’ll have savings and retirement income including Social Security that can be used to pay some of the cost with insurance augmenting and enabling you to have more options such as bringing a caregiver into your own home.” The Association director advocates a ‘Good, Better, Best’ approach to long term care insurance planning. “You can make this coverage far more affordable than you think,” he advised the group.

Monday, May 6, 2013

Handling Long Term Care Insurance Rate Increases


A growing number of individuals who purchased long-term care insurance in the 1990s and early 2000s have been receiving notifications of premium increases. They have options worth understanding explains one of the nation’s leading experts.

“While notification that your rate will increase is never welcome news, headlines often misstate and sensationalize the matter, creating confusion among consumers,” declares Jesse Slome, executive Director of the American Association for Long-Term Care Insurance. The expert was citing recent flurry of headlines citing an 85 percent rate increase for California retirees who purchased long term care insurance through the State’s benefit offering.

“Only certain policies are impacted and some policyholders could actually pay less, which is something you never hear about,” Slome shared this past weekend with California-based insurance professionals as part of his regular long term care insurance industry update. “Typically, those people who purchased policies with automatic, annual five percent increase in yearly benefits and those who have lifetime or unlimited policies are impacted by rate increases.” He noted that the low-interest rate environment has forced many insurers to seek rate increases.

“Insurers invest the premiums paid by policyholders to accumulate the dollars needed to pay future claims,” the long term care insurance expert told the group. “How can you increase benefits by five percent yearly when you are only able to earn one or two percent? You can’t so you are forced to raise premiums or give the policyholder the option of changing their policy provisions.”

Policyholders are offered more choices than just ‘pay the new premium’ Slome explained. Options include changing the daily benefit maximum, converting a lifetime or unlimited policy into one that offers benefits for a specific time period or accepting a different inflation growth option. “The company will typically maintain the value your policy has grown to but reduce future growth from say five percent yearly to three or three-and-a-half percent for future growth.”

Rate increases typically affect policyholders who have had coverage in place for a number of years. “The same coverage today would be far more expensive even after the rate increase and that assumes the individual can still health qualify,” Slome shared with the group. “When consumers call the Association office we explain if they have had their policy for more than two years, equal coverage will cost them more.”

Newer policies, those being marketed today, are less prone to future rate increases, Slome forecasts to the group. “First, interest rates are at historic lows and likely to increase removing that problem and second, new regulations are in place that offer consumers today added protection from future rate increases,” Slome concluded.

Monday, April 29, 2013

Long Term Care Insurance May Pay Family Caregivers


The vast majority of care provided to aging parents is provided by an adult child, typically a daughter or daughter-in-law. Most care is unpaid but certain types of long term care insurance will pay benefits when a family member provides care.

“A growing number of older Americans who need long term care have adult children who are able and willing to provide care,” explains Jesse Slome, executive Director of the American Association for Long-Term Care Insurance. ”They will take time off from their job or even resign creating a financial hardship for their own family or a significant reduction in their pension, Social Security benefits or savings.”

The expert shared with consumers that long term care insurance may pay for care provided by an adult child. “Not all policies will pay for a family member to care for you, so if this is something you desire, you must specifically ask if the policy offers this benefit,” Slome adds.

“Not all insurance companies offer this option which and policies with this benefit may cost a bit more,” Slome explained to the audience. “However, if it is important to have a policy that will actually pay a family member to provide some of your care, you must make sure the policy permits this option before you apply.” The national long term care insurance expert explained that insurance agents not able to sell policies with this option won’t bring up this aspect of the conversation. “If this is something you think you might want, you must ask the question,” Slome noted.

Between ages 55 and 64 is the ideal time to investigate long term care insurance options according to Slome. “That is the sweet spot because your health is the single most important factor insurers look for,” he notes. “After one qualifies for Medicare, those wonderful free health screens may just uncover a condition that may make you uninsurable.”

Monday, April 22, 2013

Worker Shortage Won’t Impact Long Term Care Insurance Owners

Projected labor shortages may affect nursing homes and may make in-home care more competitive but those with long term care insurance won’t be impacted predicts the director of the American Association for Long-Term Care Insurance.

“The Wall Street Journal reported this week that as baby boomers enter old age, nursing homes will face a serious labor shortage,” explains Jesse Slome, AALTCI’s executive director. “Their current workforce is old and beginning to retire and finding and keeping workers who will accept minimum wage is difficult at best.”

Slome was speaking to consumers about the importance of long-term care planning and benefits of long term care insurance. “There are about 40 million Americans currently over age 65, but that number is projected to reach 73 million by 2030,” Slome shared. “The vast majority have no plan in place and will rely on whatever government and charity programs will exist at that time.”

According to U.S. government estimates, the growing population of elderly will require five million direct-care workers in 202. “That’s nearly 50 percent more than the current workforce,” Slome shared. “Nursing homes will do their best but how much quality can you provide when workers demand more and government programs pay less. The formula just adds up to poorer quality for those who can not afford to pay themselves.”

Slome refers to long term care insurance as today’s ‘nursing home avoidance’ protection. “Insurance provides you with the ability to receive care at home and avoid going to a nursing home,” Slome adds. “Medicaid, the government’s program for the poor will be sending more people to nursing homes and then limiting the payments. If you want options to avoid that situation, start saving now or have some insurance to help pay part of the costs for home care. ”

The Association recommends a “Good, Better, Best” approach to long term care insurance protection. “Good coverage may only pay half the cost with you paying the rest from Social Security or savings,” Slome explained. “But you’ll be able to get better care and access to workers when you have the ability to pay, and that’s an advantage those without long term care insurance will not enjoy.”

Monday, April 15, 2013

Weiss Long Term Care Insurance Ratings Misses Mark

Weiss Ratings recommendations of long term care insurance companies missed the mark according to one of the nation’s leading experts.

“Consumers today are aware of the importance of financial strength of the insurance company they select,” explains Jesse Slome, executive Director of the American Association for Long-Term Care Insurance. “It is unfortunate when information provided only creates added confusion.”

Slome was sharing thoughts with Florida-based insurance professionals as part of his regular long term care insurance industry update. “Weiss Ratings issues financial strength ratings on more than 19,000 institutions each quarter,” Slome acknowledged to the agents. “Their list of 21 recommended long-term care insurance is primarily composed of companies that no longer offer this important protection so any consumer using it will be highly frustrated.” The Weiss recommendations were published April 4, 2013. “They do acknowledge that insurers may no longer be offering coverage but when the majority of your listing are no longer in the marketplace, that will lead to consumer confusion,” Slome added.

The Weiss Ratings recommended long-term care insurance companies included Blue Cross Blue Shield of Alabama, Blue Cross Blue Shield of Kansas City, examples of two companies that have not offered long term care insurance for many years. The report also sites State Farm Mutual Automobile Insurance Company and Physicians Mutual, two companies that have more recently announced they are ceasing sales on a nationwide or specific state basis, Slome shared.

“There are about a dozen companies today offering long-term care insurance protection, ” Slome shared. Leading providers include John Hancock, Mutual of Omaha and Transamerica.”

Slome recommend that insurance professionals gain a comprehensive understanding and ability to help counsel and advise individuals. “Financial strength of an insurer is of course important but far more important is being able to provide an objective cost-and benefit analysis after comparing multiple insurers,” Slome noted.

Monday, April 8, 2013

Importance Of Long Term Care Insurance Specialist Grows

Significant changes have taken place over the past few years that will benefit those who specialize in long term care planning and offer a variety of long term care insurance solutions according to an industry expert.

“Things change and when it comes to long term care planning, we are seeing important changes that will benefit those who specialize,” noted Jesse Slome, executive director of the American Association for Long-Term Care Insurance. The head of the national trade group was addressing insurance professionals who market long term care solutions.

“Consumers with health issues today recognize the benefit of getting advice from a medical specialist who focuses on a specific, very narrow field,” Slome noted. “Today, the nuances between not just long-term care insurance products but the different options such as hybrid life insurance products are changing the landscape.” Slome noted an increase in calls from consumers whose financial advisor recommended a hybrid life insurance product that also provided a long term care potential benefit.

“Spending between $50,000 and $100,000 per-person is not a casual expenditure for many and an increasing number of consumers are calling the Association to determine if this really is their best option,” Slome reports. “We explain that the best option addresses both their current financial situation and approach to planning and that they may want to take a more comprehensive review which really can only be done by an knowledgeable specialist with knowledge of both options.”

With that in mind, Slome encouraged insurance professionals gain knowledge of all approaches. “The ideal medical professional understand not just drugs but non-traditional approaches to healthy lifestyles and treatment of conditions,” Slome shared with the group. “The future will belong to long term care insurance experts who are specialists offering all options and solutions to individuals. One option, one insurance policy really has never been the best option and in the Internet age it will quickly fade into oblivion,” he predicted.

Monday, April 1, 2013

Added Longevity Increases Importance of Long Term Care Insurance

A new study reports that a female who reaches age 65 is expected to live another 22.7 years an increase from the prior projection of 21.3 years. A male who reaches age 65 is expected to live another 20.5 years up from 19.5 years.

“People are living longer lives and the consequence of longevity is a greater risk of needing long term care,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance. He notes that long term care insurance requires that applicants meet health criteria and that applying prior to age 65 is ideal. “The sweet spot we believe is between ages 55 and 65 when you are most likely to health qualify for this protection.”

According to Slome, the average age when people apply for coverage is currently 56. “We advocate a ‘good, better, best’ approach to long term care insurance planning where you factor your financial and personal situation and tailor coverage to meet your needs and budget,” Slome explains. According to the 2013 Long Term Care Insurance Price Index just released by the organization, a 60-year old couple can expect to pay from $1,800 to about $3,500 a year depending on how much benefit dollars they want access to.”

The longevity projection comes from a Society of Actuaries report issued recently, the first update to their mortality projections since 2000. The American Association for Long-Term Care Insurance provides support to insurance professionals and publishes the annual long term care insurance Sourcebook containing extensive industry research.

Monday, March 25, 2013

Long Term Care Insurance Exec Cites Medicare Deficiency Report

Los Angeles; March 5, 2013 – Medicare paid over $5 billion to nursing homes that were not meeting basic requirements resulting in some cases in dangerous and neglectful conditions.

According to the report from the Department of Health and Human Services’ inspector general, in 2009 Medicare paid for stays in skilled nursing facilities that failed to meet federal quality of care rule. The investigators estimated that one out of every three times patients wound up in nursing homes that year, they landed in facilities that failed to follow basic care standards laid out by the federal agency that administers Medicare.

“These findings raise concerns about what Medicare is paying for,” the report said. “Indeed they should raise concerns,” stated Jesse Slome, executive director of the American Association for Long-Term Care Insurance, a national trade group. “We know not everyone can afford or health qualify for private long term care insurance but those who don’t want to depend on the future ability of government programs to provide quality care should do some planning.”

Investigators estimated that in one out of five stays, patients’ health problems weren’t addressed in the care plans, falling far short of government directives. The Office of Inspector General’s report was based on medical records from 190 patient visits to nursing homes in 42 states that lasted at least three weeks.

The sample represents over one million patient visits to nursing homes nationwide in 2009, the most recent year for which data was available. “Everyone wants the highest quality of care and Medicare benefits but no one wants to pay the taxes so it’s just silly to expect significant change,” Slome declared. “Ultimately we believe private long term care insurance offers the ability to have greater choice when it comes to choosing where care is received and while it isn’t a universal solution for all, for millions it provides a level of assurance, support and funding that is most beneficial.”

Monday, March 18, 2013

Long Term Care Insurance Association Members Eligible For MDRT

Insurance agents wishing to apply for membership in the Million Dollar Round Table must also belong to an industry organization such as the American Association for Long-Term Care Insurance. “The Million Dollar Round Table is a professional trade association formed in 1927 to help insurance salespeople and financial advisors establish best business practices,” explains Jesse Slome, executive director of the long term care insurance trade group AALTCI. Members typically sell risk-based products like life insurance, disability and long term care. According to recent reports MDRT has some 40,000 members in over 80 countries. “To belong, an insurance agent must meet qualification requirements including sales production as well as membership in an outside independent organization,” Slome explains. Membership in AALTCI has been approved for MDRT eligibility.

Monday, March 11, 2013

New Long Term Care Insurance Growth Options Advantageous

Consumers considering long term care insurance protection should consider various options that can significantly reduce their cost explains one of the nation’s leading industry experts
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“Newer policies introduced by leading insurers offer some significant savings advantages well worth considering,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance. The head of the national trade group based in Los Angeles, CA encourages consumers between the ages of 55 and 65 to begin planning by working with a knowledgeable professional.

“Policies today have evolved to meet both the needs of younger individuals who want to plan and to take into account the current economic conditions,” Slome explains. “When interest rates were higher and when inflation was high, the standard long term care insurance policy option selected increased policy benefits by five percent yearly,” he notes. “Today that is a very expensive proposition and may simply be out of reach and not needed by many.”

According to the Association, a couple both age 55 who apply for long term care insurance today can expect to pay around $4,100 a year for an initial policy providing $164,000 coverage for each which grows at five percent yearly.

By comparison, Slome notes that the same initial coverage would cost $1,300 if the couple selected a Future Purchase Option. “This is an outstanding option because it allows the couple to increase benefits in future years without having to meet new health qualifications,” Slome explains. Leading insurers such as John Hancock offer options like this as part of their new Benefit Builder series.

“Just as people today want fuel efficient cars because gas prices have significantly risen, people who want long-term care protection should consider the significant merits and savings obtained by opting for the Future Purchase Option feature,” Slome advises. The expert notes that not all insurers today offer this benefit. “With long term care insurance the policy options and costs can vary significantly from one insurer to the next,” Slome notes. For example, while the average cost reported was $1,300 annually, the cost ranged from a low of $1,250 to a high of $1,770.

Monday, March 4, 2013

Long Term Care Insurance Exec Cites Medicare Deficiency Report

Medicare paid over $5 billion to nursing homes that were not meeting basic requirements resulting in some cases in dangerous and neglectful conditions.

According to the report from the Department of Health and Human Services’ inspector general, in 2009 Medicare paid for stays in skilled nursing facilities that failed to meet federal quality of care rule. The investigators estimated that one out of every three times patients wound up in nursing homes that year, they landed in facilities that failed to follow basic care standards laid out by the federal agency that administers Medicare.

“These findings raise concerns about what Medicare is paying for,” the report said. “Indeed they should raise concerns,” stated Jesse Slome, executive director of the American Association for Long-Term Care Insurance, a national trade group. “We know not everyone can afford or health qualify for private long term care insurance but those who don’t want to depend on the future ability of government programs to provide quality care should do some planning.”

Investigators estimated that in one out of five stays, patients’ health problems weren’t addressed in the care plans, falling far short of government directives. The Office of Inspector General’s report was based on medical records from 190 patient visits to nursing homes in 42 states that lasted at least three weeks.

The sample represents over one million patient visits to nursing homes nationwide in 2009, the most recent year for which data was available. “Everyone wants the highest quality of care and Medicare benefits but no one wants to pay the taxes so it’s just silly to expect significant change,” Slome declared. “Ultimately we believe private long term care insurance offers the ability to have greater choice when it comes to choosing where care is received and while it isn’t a universal solution for all, for millions it provides a level of assurance, support and funding that is most beneficial.”

Monday, February 25, 2013

Low Cost Long Term Care Insurance Options For Women

A single woman will pay between $900 and $1,300 yearly for long term care insurance protection currently being offered by leading insurers. However, they will soon be paying more warns one of the nation’s leading industry experts.

“Women have the greatest need to do some long term care planning but the opportunity to take advantage of currently available low rates will end soon,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance. The head of the national trade group explains that insurers who currently charge men and women equal amounts for coverage will soon start charging higher rates to women.

“The difference will be significant, as much as 40 percent more, so the incentive to act sooner rather than later can really result in significant savings,” Slome notes. The organization reports that a single woman, age 55 who qualifies for preferred health rates will pay between $902 and $1,325 yearly for $164,000 of current coverage.” The pricing is based on policies offering a Future Purchase Option feature which allows the individual to add to their coverage in future years without having to meet health qualifications.

“The Future Purchase Option is an ideal way for women with more limited budgets to lock in some affordable long term care insurance now,” Slome adds. “They take advantage of the current lower pricing and any increases they may opt for are also priced using the current formula, truly one of those win-wins.”

Not all insurers offer money-saving options like this and Slome advises consumers work with a knowledgeable specialist in the field. “Each insurance company offers different options and sets their own price for coverage and only a select few agents sell long term care insurance coverage from five or six carriers,” he adds. “This is a complex product and you want to work with someone who specializes in the field and, at the same time, has your best interest at heart.”

Monday, February 18, 2013

Long Term Care Insurance Deductible Cuts Cost 15 Percent

Choosing a long term care insurance policy with a 90-day deductible can reduce your cost by hundreds of dollars annually according to industry experts.

“You can significantly reduce the cost of long term care insurance when you select the right combination of benefits and option,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group. “In fact the elimination period selection is one of the more important ways people can reduce their costs.” The national long term care insurance expert points out that the term Elimination Period is industry jargon for the deductible time period when a policyholder must bear the cost of qualifying claims.

According to an Association study released today, selecting a 90-day deductible period will reduce costs by over 15 percent annually versus selecting a 30-day deductible. A 55 year old in standard health could expect to pay roughly $2,220 per year for an immediate level of protection equal to $164,000 when they chose a 30-day deductible. The policies examined by AALTCI included a three percent annual compound inflation growth option. By extending the deductible to 90 days, the cost would be lowered to $1,882, a 15.225 percent reduction.

“Most people don’t wake up one morning and find they need round-the-clock care,” Slome acknowledges. “We often age into a need for care so that family members often provide unpaid care at the early stages thus a longer deductible period when one pays for their own care makes a lot of sense.” The cost is higher for shorter elimination periods because insurers will not just pay out more claim dollars but also see more claims incurring during this time period. “People who need long term care do sometimes recover from the condition and can go off claim,” Slome explains.

“Many people have a deductible for their homeowners, car and even health insurance,” Slome notes. “It makes sense to share some of the risk with the insurance company as a way of achieving significant savings. The same is true when it comes to long-term care insurance.”

Monday, February 11, 2013

Long Term Care Insurance Like Products For Those With Health Issues

Individuals who are unable to meet health standards required by long term care insurance companies now have several options available according to industry experts.

“A growing number of people only start looking into long term care insurance because they know they have health issues which could result in a lengthy need for costly care,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group. “Unfortunately, often they can no longer meet the health requirements to obtain coverage from the some insurers but that is not true for all of them.” He notes this is especially common among seniors over the age of 65.

According to the Association, a number of insurance companies offer coverage to those who might have health issues making them ineligible for protection from companies like New York Life, Genworth, Northwestern Mutual or Mass Mutual. “The options range from more traditional-looking long term care insurance policies to what I call long-term care-like coverage that will pay benefits for the vast majority of situations that arise causing the need for long-term care,” Slome notes.

Often coverage available comes with limitations national long term care insurance experts explain. “You may not be able to get coverage for say a condition lasting 20 years, but protection for conditions that last three years,” Slome explains. “But some coverage is always going to be better than none.” Costs for coverage for those with health conditions tend to be higher. “That’s due to the fact that health conditions are certainly an indication of higher risk of needing care,” he notes. “People understand that and generally if they have been declined by one long term care insurance company, they are willing to pay a bit more to get the coverage somewhere else.

” Slome expects more insurance professionals will become familiar with these options in the years to come. “For now, there are really a limited number of specialists who truly understand how these products work, the health requirements and can compare them to traditional long-term care insurance policies,” he concludes.

Monday, February 4, 2013

Long Term Care Insurance Deductible Cuts Cost 15 Percent

Choosing a long term care insurance policy with a 90-day deductible can reduce your cost by hundreds of dollars annually according to industry experts.

“You can significantly reduce the cost of long term care insurance when you select the right combination of benefits and option,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group. “In fact the elimination period selection is one of the more important ways people can reduce their costs.” The national long term care insurance expert points out that the term Elimination Period is industry jargon for the deductible time period when a policyholder must bear the cost of qualifying claims.

According to an Association study released today, selecting a 90-day deductible period will reduce costs by over 15 percent annually versus selecting a 30-day deductible. A 55 year old in standard health could expect to pay roughly $2,220 per year for an immediate level of protection equal to $164,000 when they chose a 30-day deductible. The policies examined by AALTCI included a three percent annual compound inflation growth option. By extending the deductible to 90 days, the cost would be lowered to $1,882, a 15.225 percent reduction.

“Most people don’t wake up one morning and find they need round-the-clock care,” Slome acknowledges. “We often age into a need for care so that family members often provide unpaid care at the early stages thus a longer deductible period when one pays for their own care makes a lot of sense.” The cost is higher for shorter elimination periods because insurers will not just pay out more claim dollars but also see more claims incurring during this time period. “People who need long term care do sometimes recover from the condition and can go off claim,” Slome explains.

“Many people have a deductible for their homeowners, car and even health insurance,” Slome notes. “It makes sense to share some of the risk with the insurance company as a way of achieving significant savings. The same is true when it comes to long-term care insurance.”

Monday, January 28, 2013

Long Term Care Insurance Sales In The Connection Economy

The rules that govern marketing and sales of long term care insurance no longer apply and success going forward will depend on how well insurance agents adapt to the ‘Connection Economy’ declares a leading industry expert.

“The insurance industry and especially insurance agents lag woefully behind the curve in accepting the new reality of how American consumers seek and obtain information and make buying decisions,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance. The founder and head of the national trade group based in Los Angeles, CA advised insurance agents of the need to adapt in order to flourish in the new ‘Connection Economy’ as he describes it.

“Change is occurring faster than most people are prepared to adapt and while it is generally perceived as young people who most utilize technology, older consumers, those who are prospects for long-term care insurance are rapidly changing as well,” Slome notes.

As evidence, the Association executive noted the dramatic increase in the number of people using online search engines to research information and connect with resources who can provide both competitive products as well as expertise. “In the Connection Economy establishing your expertise in the eyes of the public is paramount,” Slome says. “It is amazing how many insurance professionals still have no online presence or a poorly crafted one, when so many free opportunities such as Linkedin exist,” he shared with agents recently.

Slome who founded the Association in 1998 and is an award winning marketing and sales executive urged insurance professionals to devote just one hour each week to efforts related to improving how they connect with new world consumers online. “Most independent agents do not need a website, or can utilize a low-cost template version, but they must learn how to effectively create an online presence so that consumers who are seeking information or checking our their professional credentials can accomplish this with relative ease,” he added.

Monday, January 21, 2013

Medicaid Funding Shortfalls Will Propel Long Term Care Insurance Growth

Medicaid underpayments to skilled nursing facilities are reported to exceed $7 billion in 2012, the largest deficit since the study of this data was first started.

“Long term care insurance will become known as nursing home avoidance insurance,” predicts Jesse Slome, executive director of the American Association for Long Term Care Insurance, the national trade group based in Los Angeles, CA. “Medicaid already underpays for every patient and the pending Federal budget talks are only going to make matters worse.”

According to the study released by the American Health Care Association, the average shortfall amounted to $22.34 per patient day. “For a two year nursing home stay, Medicaid is underpaying by $16,300 an amount that nursing homes expect to cover from payments from private-pay patients,” Slome explains. “That’s an unsustainable model and people will understand that inevitably there will be two classes of care, one for those with the ability to pay and the other who must depend on whatever government programs exist at the time.”

The estimated typical Medicaid shortfall for 2012 of $22.34 per Medicaid patient day was reportedly 14.3 percent higher than the preceding year’s projected shortfall of $19.55 the report notes. Researchers point out that for a typical nursing home facility with 100-beds where 63 percent of residents rely on Medicaid for coverage, this shortfall would mean a loss of more than $500,000 annually.

“It’s not an ideal situation but it’s a real issue and unless the taxpaying public has a significant change of heart and chooses to pay more taxes to cover all the future needs of Medicare and Medicaid, the shortfall will only grow,” explained Slome. The national long-term care insurance expert noted that as awareness of the issue grows, people will realize that even a basic amount of long-term care insurance can help them avoid becoming dependent on family members or a deficient government program.

“We have millions of people who have no plan in place, find a million excuses for procrastinating and then are forced to depend on whatever government programs exist.” Slome adds, urging the membership of the organization to play a role in educating the American public.