The members of the committee include an interesting mix of health and long-term care policy experts, several representatives from the nursing home and the senior service industry, physicians, union officials, a state Medicaid director, a Medicare consumer advocate and a vice-chair from the AARP board with extensive government experience.

A glaring omission is the lack of a representative from the insurance industry.The commission is charged with addressing a broad range of challenges relative to long-term care: financing, delivery, and workforce challenges. Without a budget or staff (beyond appointees), Commission members have been given a 6-month deadline for recommendations.

Expectations are generally low for the Commission. However, expectations for the federal government’s LTC insurance-like CLASS program being signed into law seemed a very long shot for a long time…until it happened. In an ironic move, CLASS was eventually repealed in the same bill that created this commission!

Is Congress ready to address anything related to long-term care? A LTC Commission recommendation for a federal tax deduction for LTCI, or the ability to include LTCi in Section 125 plans would be welcome. We’ll be reporting the outcome of this newest initiative after its report is issued in September.

Here is a full list of the Commission Members:

The Democratic Picks:

Javaid Anwar, physician V.P. for health services at large casino company.   Former chair, Nevada Committee on Access to Health Care.

Laphonza Butler, union president – Service Employee’s International United Long Term Care Workers’ union.

Bruce Chernof, physician & President and CEO of the SCAN Foundation, dedicated to transforming health care for seniors in ways that encourage independence and preserve.

Judy Feder, public policy professor who was staff director of the 1989-90 U.S. Bipartisan Commission on Comprehensive Health Care (to recommend legislative action to ensure all Americans coverage for health and long-term care), aka The Pepper Commission.

Judith Stein, founder of the Center for Medicare Advocacy.

George Vradenburg – philathropist who foundered the non-profit U.S. Against Alzheimer’s—which advocates primarily for research dollars.

The Republican picks:

Judith Brachman, housing official in the Reagan Administration, now affiliated with a national organization representing long-term care providers (Jewish Federation of North America).

Bruce Greenstein, Louisiana’s Secretary of Health and Hospitals, who was formerly a senior official at HHS and managing director for worldwide health at Microsoft.

Stephen Guillard – past CEO of several for-profit large skilled nursing facility operators.

Neil Pruitt is chairman and CEO of a health care company, and board chair of the biggest trade group representing nursing homes and other providers (The American Health Care Assoc.)

Grace-Marie Turner- president of a free-market-oriented public policy organization that focuses on health care issues (The Galen Institute).

Mark Warshawsky – pension expert and former Treasury Dept. official.

The President’s Picks:

Henry Claypool – EVP of the American Association of People with Disabilities, with deep experience in federal government.

Dr. Julian Harris, Appointee for Member, Commission on Long-Term Care
Dr. Julian Harris – physician who is Massachusett’s Medicaid Director, with public health and World Bank experience.

Carol Raphael – is the Vice Chair of AARP’s Board of Directors, with extensive long-term care industry experience, who holds a Master’s degree in Public Administration from Harvard University.

Conducted by AARP’s Public Policy Institute, the survey found the issue is incredibly widespread. About 42 million people are caregivers in the U.S., and with an aging population, that number is expected to increase rapidly. [1]

The “average” caregiver, according to AARP, is a 49-year-old woman who works outside the home and spends nearly 20 hours per week providing unpaid care for nearly five years. She may provide this care after work, or as often happens, through cutting back on work or leaving the job altogether.

The recession has made these decisions more stressful, however. Job insecurity has become a major concern for families trying to balance work and caregiving. Studies find that one in four feel a moderate to high degree of financial hardship from caregiving requirements. Some also report they having to cut back on care-related spending because of the economic downturn.

This is where services provided through a long-term care insurance program provided can be invaluable. The insurance, if it includes benefits for family members, can help provide access and reimbursement for a variety of home and institutional care services. This allows the employee to focus on work at the office and remain on track in their career.

Without long-term care insurance to help, the situation can become overwhelming. Lynn Feinberg, who co-authored the AARP study says, “The burden on families is huge. While families are stepping up to the plate and making this contribution to society, the cost to their own health and financial security is huge.”[2]

Making matters more difficult, about 15 percent of the country’s caregivers now live an hour or more away, according to National Institute on Aging data. The average distance according to a MetLife study was 450 miles, and almost a quarter of those surveyed said they were the only caregiver.

There is a direct impact between long-term care needs and a company’s bottom line. Long-term care coverage provides the tools to help employers manage these issues and maintain worker productivity. With federal and state tax incentives, programs can often be provided to employees at low or no cost to the employer.

If you’d like to know more, EM-Power Services offers turnkey enrollment and services, making the process very easy and uncomplicated, while providing access to the highest quality insurance protection.

Ms. Orman readily admits that not many people can afford to do this. It’s one reason why she strongly recommends that people look into getting a long-term care insurance policy.

Are your employees in denial too? Do they think they won’t need care or that the Federal government will pay for their long-term care? When it comes to planning for the future, employees often have misguided beliefs and perceptions.

The following are five things we hear often when discussing long-term care insurance with employees. It’s important to know the facts so you can educate your employees and help them plan effectively for the future.

1. “I won’t need it.” The fact is that 70% of us will need some form of long-term care. And about 40% of us will need it before the age of 65. What many employees don’t realize is that long-term care isn’t just about nursing homes, but also includes home care, rehabilitation, and other needs not covered by traditional health or disability insurance.

2. “The Government covers it.” Medicaid only pays for long-term care if the financial resources are not available to cover the cost of care. Often this translates into spending down personal assets until the program threshold is triggered. Medicaid patients, however, often have significantly less control over where and how they will receive care, since not all facilities accept patients. In addition, recipients of long-term care often wish to remain in their home, which may not be an option under Medicaid.

3. “My family will take care of me.” While that used to be the case, now family members are often spread out across the country. They are also often unable to assume care for a loved one because of their own family commitments. In addition, asking family members to take on long-term care also represents a significant financial burden. Many caregivers end up paying for expenses related to care out of their own savings.

4. “I’ll do this when I retire.” Many people wait until they approach retirement to apply for long-term care insurance. This is not a good idea. As we age, we often develop chronic conditions that can turn into diseases such as diabetes. This makes it more difficult to obtain coverage. In addition, because long-term care insurance utilizes an age-based premium model, coverage is often cheaper when acquired at a younger age.

5. “l can pay for my own care.” Currently, nursing home costs alone can run over $90,155 in one year, according to one study. Given that the average need for long-term care is three years, this amounts to paying $300,000 out of pocket for care. Often, this depletes the retirement and savings built over a lifetime of work. What’s more, a long-term care insurance policy gives employees more control over their care options.

As we come into the all-important benefits review season, now is the time to learn more about adding long-term care insurance to your benefits package. Long-term care can make a meaningful difference for employees. And often it can be provided at little or no cost to the company.

Your employees will thank you in the long run.

A recent study by Mutual of Omaha looked at what motivated people to purchase long-term care.

The study found, not surprisingly, that those with first-hand experience in providing or financing long-term care were much more likely to opt-in to a long-term program.

In the work place, experienced employees can help educate their colleagues by sharing their personal story. The study found that when people seek out information about the insurance, listening to those experienced with the challenges of long-term care is an important source of information.

The study also found that among employees, married women aged 55 – 64 are the most likely to take advantage of purchasing long-term care insurance. The driver is often that they have been exposed to long-term care issues at home or through a friend.

These employees can also help younger employees understand the value of long-term care insurance as well. Younger employees can take advantage of lower rates and a higher acceptance rate, because they often have less pre-existing conditions.

Communicating the value of long-term care is critical to making a worksite program work, and your employees may be able to help you in that effort.

It’s a startling figure, and unfortunately is only going to increase. The $240,000 figure is a 4% increase from last year, but the estimate has actually grown on average about a 6% increase per year over the last decade due to medical cost inflation.

In addition, it was reported recently that Social Security is at risk of becoming unfunded by 2033, three years earlier than was previously predicted. Medicare is expected to start operating in the red in its largest fund in 2024. These programs may have to reduce benefits in the future to continue their existence. Already in many states there is a long wait after individuals have depleted their savings to be accepted into the program.

This is why it’s critical to educate younger workers about long-term care insurance and offer a company-based program. Not only does it help your employees preserve their home, retirement, and savings, but it also allows them to choose what type of care they want when the time comes. Medicare often requires institutionalization to qualify. And younger workers can qualify for high-quality insurance policies at less cost. They also have less risk of not being accepted for the insurance due to pre-existing conditions.

As the Fidelity report notes, for many Americans, health care is likely to be the largest expense in retirement. And long-term care is among the most expense of health care costs. An extensive study released by John Hancock in 2011 found that the average cost for long-term care in the U.S. is $85,775 for a private room in a nursing home and $75,555 for a semi-private room. The study cited a cost of $39,240 for an assisted living facility, but many facilities in major urban areas far exceed that amount.

A good long-term care program at your organization will offer the education and information employees need to effectively plan for the future. It demonstrates the employer’s commitment to staff (often at little or no cost to the company) and helps retain key employees as hiring becomes more competitive in the future.

Employers are in a great position to help, and often at little or no cost to the company.

Concerns about retirement and long-term care surfaced again last week, after a report from the Federal Government was released. The report stated that Medicare’s trust fund will run dry in 2024, or five years earlier than forecast. Social Security will also be exhausted by 2036 if nothing is done.

The pace of decline has been hastened since the last report because of the recession, which has sapped revenue and increased Federal spending. Both programs are running in the red and will continue to do so according to the Government. Medicare is paying out more in benefits each year than it takes in. And with Boomers like to retire in record numbers, this trend is expected to increase.

A CNN report found that a quarter of middle-class Americans are now so pessimistic about their savings that they are planning to delay retirement until they are at least 80 years old — two years longer than the average person is even expected to live.

On average, Americans nearing retirement have saved 7% of the nest egg they were planning to build. The picture worsens when you factor in potential long-term care costs, which are increasingly annually. For example, the average daily cost for a nursing home private room is $235 or $207 for a semi-private room, rising approximately 3.25% per year. The cost for assisted living is approximately $3,270 a month and is rising at 3.4% per year.

With the financial deck stacked against many working Americans, employers who offer education as part of a voluntary long-term care insurance benefit are helping their employees understand the importance of making long-term care planning a part of financial planning. Education about retirement and long-term care insurance is now more critical than ever. Helping younger employees understand the planning challenge early can mean the difference between passing or failing the medical underwriting process which becomes more difficult as pre-existing medical issues deteriorate with age. The other benefit of planning young is age based premiums are lower. And with employer-based programs, plan premiums can often be discounted and extended to include other family members.

Sponsored long-term care insurance on a voluntary basis is a unique opportunity for employers to provide valuable assistance without increasing their budgets.  As the cost of health insurance continues to rise, and as a consequence, benefits continue to be cut, offering long-term care education may save workers from experiencing the personal and financial pain that comes with needing long-term care.

With the future of federal and state programs in doubt, the time to educate employees about long-term care is now.  Employers should be looking at long-term insurance as a way to cover a critical gap in the coverage of their employees and see it as an opportunity to “do well by doing good” at little or no cost.