Making It Affordable for People to Care

A Long-Term Care Solution

from AAHSA

From ABC’s World News Tonight

What is Long-Term Care?

The broad array of services and supports that people of all ages need when they can no longer completely care for themselves.

Long-term care services and supports include: help with bathing, dressing, or with household tasks like cooking and cleaning.

These services and supports may be provided by a person’s family members or by paid caregivers.

The Scope of the Challenge: Young and Old

Where Is Care Provided?

80% at home

20% institutional setting

35.4Hours

PerWeek

Caregiving Commitment

Family Caregivers – What They Spend, What They Sacrifice, November 2007

32%

Caregiving Commitment

5+ years

52%

3+ years

Who Pays?

PrivateInsurance

PublicFunding

4% 28%

Families/UnpaidCaregivers

68%

Families and

Unpaid Caregivers

68%

$5,531

Annual cost of care

Personal Financial Commitment

Family Caregivers – What They Spend, What They Sacrifice, November 2007

Cost Implications for BusinessesCost Implications for Government

$2,000 per employee$100 billion

Source: Metlife Mature Market Institute and National Alliance for Caregiving, July 2006 Source: AAHSA estimate for 2007, based on data for 2006 in "Medicaid and long-term care" fact sheet,

Georgetown University Long-Term Care Financing Project, January 2007

Rose’s Story

Number of Adults 65 and Older Requiring Assistance

Nu

mb

er in

mill

ion

s

Severely Disabled

Moderate Disabilities

7.7 8.9

6.3

13.0

3.33.7

5.0

2010 2020 2030 2040

14.5

25

20

15

10

5

0

Source: The Retirement Project, 2007, by Johnson, Toohey and Wiener

The Long-Term Care Solution

A Framework for Financing Long-Term Care in America

Who is AAHSA?

A non-partisan, non-profit advocacy group representing not-for-profit aging services providers

Members serve more than two million persons daily Mission to create the future of aging services

Widespread Concern About Long-Term Care Reform

74%

Very Important

20%

Somewhat Important

94%

Very or Somewhat Important

Source: National Commission for Quality Long-Term Care, 2007

Widespread Support For A Voluntary Contribution System

Support Strongly

Support Somewhat

Oppose Somewhat

Oppose Strongly

Don't Know

46%

31%

Source: National Commission for Quality Long-Term Care, 2007

The Long-Term Care Solution

National insurance trust Broad-based consumer participation Cash benefits optimize choice No underwriting Available to all adults

regardless of age Medicaid as safety net

Number of Years of Covered

Benefits

Annual Daily

1 $266 $0.73

2 $465 $1.27

3 $614 $1.68

5 $806 $2.21

Lifetime $1,048 $2.87

Premium PricesExample Plan: includes all age 21+, 5 year vesting, $75/day cash benefits for disability (2+ADLs)

Source: “Modeling a New Long-Term Care Financing Plan,” The Moran Company, December 2007

Choice

Responsibility

Fairness

73¢/day = 1 year’s worth of benefits

$1.68/day = 3 years’ worth of benefits

$2.87/day = Lifetime benefits

The Long-Term Care Solution

The Choice is Ours

Moral Imperative

Fiscal Imperative

Political Imperative

The Time is Now