Cooperation, Innovation, Growth:
A Call for Partnership Between Long-Term Care Insurance and You
By Lorraine Spiotta, CLU, ChFC
 In
times of crisis, great innovation can occur. In this time of limited government
funding for elder care and long term care services, professionals in the fields
of assisted living and long term care insurance must think "outside the
box" to bolster sales of their services that promote affordable long-term
care for our nation's elderly.
For those of us working in the fields of assisted living and long-term care
insurance, we know the value of our services, but the general public is still
unaware of how we can help them have a quality of life and healthcare coverage
and still remain financially viable. For example, according to Health Insurance
Association of America, 90 percent of assisted living costs are covered by a
typical long-term care insurance policy. It's clear that coordinating
objectives, advertising and media strategies can benefit both business groups.
Public Awareness Needed
Recently, my major op-ed on caregiver challenges in the workplace was
published in three New Jersey daily newspapers. In it, I noted that government
studies report that America's elderly population will more than double by 2040,
and one U.S. Department of Labor study found that long-term care is the greatest
uninsured risk Americans face. Thanks to organizations like the National Family
Caregivers Association and the Alzheimer's Association, there are vehicles
available for adult children to consult when assuming more of the caregiving
responsibilities for older relatives. Even with these invaluable resources, the
bottom line is that most Americans do not purchase long-term care insurance and
do not consider assisted living until they are in crisis, and this strategy
undermines their financial and health security. According to the Health
Insurance Association of America, "less than 15 percent of all individuals
over 65 and fewer than 5 percent of those under 65" have long-term care
insurance policies.
Those of us represented in the areas of assisted living, long-term care and
long-term care insurance recognize how our valuable and practical services
transform the lives of beneficiaries. We deliver security, quality of life,
affordable services and independence facilitated by a menu of services that can
be adapted to match declining health needs.
But, unless we "partner" to share resources and jointly promote
services while advertising the values of each other's programs, we may not be
able to effect the necessary changes in state and government regulations that
will allow our programs to flourish. A cooperative approach to marketing the
values of assisted living facilities with payments through long-term care
insurance policies is beneficial to all. We also know that traditionally,
Medicaid funding is quite limited for assisted living facilities, and it makes
sense to coordinate legislative and consumer strategies to promote increased
reimbursement for assisted living facilities, and their important
community-based healthcare services. The Assisted Living Federation of America
(ALFA) rightly advocates that consumers must be empowered with information
regarding the value of assisted living facilities prior to considering
healthcare, long-term care and retirement options. The cornerstone for a better
educated population about healthcare and long-term care options will be
cooperative and joint marketing campaigns between assisted living professionals
and long-term care insurance agents.
For non-assisted living professionals, there are limited studies available
about assisted living facilities. The MetLife Survey of Assisted Living Costs
2002 represents one of the few surveys of assisted living facilities available
to the insurance community. Published by MetLife's Mature Market Institute, this
survey presents a window for how agents can help clients prepare for assisted
living and long-term care options in insurance policies. We know that the
activities of daily living (ADLs) greatly decline in the oldest Americans.
Couple this with the further decline in instrumental activities of daily living,
and older persons are much more isolated and in need of care. Enter caregivers,
who, according to the MetLife Study of Employer Costs for Working Caregivers,
cost American businesses between $11 billion and $29 billion each year due to
absenteeism related to caregiving responsibilities. We have two groups wounded
by the declining health of an aging loved one. Had there been more awareness
about how long-term care insurance might help pay for assisted living, seniors
and their families might be able to make more informed and affordable choices
about long-term care.
I believe assisted living represents one of the best alternative ways for
older adults to maintain flexibility and independence in a residential
alternative to expensive nursing home care. The MetLife Assisted Living Survey
notes that because assisted living facilities are regulated on a state basis,
the reimbursement standards through social security or Medicaid waivers for the
medically needy vary by state. Several states are experiencing fiscal crisis in
relationship to the continuing recession, and Medicaid dollars are limited. We
must "control" how our industries are presented to the general public
and not allow government to define our services through the lack of funding.
Local Partnerships
There are inexpensive and uncomplicated ways to promote partnerships for our
industries. The community relations director at an assisted living facility will
sponsor seminars to bring people into the home which include informational
workshops. In my capacity as a long-term care insurance broker, I have arranged
lunches with several community relations directors of assisted living facilities
including Chelsea Assisted Living (East Brunswick, NJ), and Castle Senior Living
at Forsgate (Cranbury, NJ). Joining us were community leaders who could become
interested in the facilities, and they included bankers, elected officials, home
healthcare agency representatives, case managers, doctors, hospice staff and
others. This format has shown to be quite successful, and presented an
opportunity to update the changes in Medicaid, clarify the care being provided,
introduce new community resources and created an opportunity to provide a
roundtable discussion of critical issues while having a tour. The assisted
living facility provided the lunch in a private dining room, and I coordinated
the program's logistics and then had a chance to discuss long-term care
insurance.
I've also conducted a similar program at an area nursing home. Recently, I
joined with an elder law attorney to present a team discussion on long-term care
insurance and legal issues affecting the aging at Blythe House Assisted Living
(Manalapan, NJ) and numerous senior centers. These programs are a win-win for
the assisted living facility and my long-term care insurance brokerage because
we each get to showcase our strengths before prospective clients.
Bonnie Leibowitz, CALA, director of marketing pavilion at Forrestal, The
Residence Assisted Living, Continuum of Care, commented on the benefits of
cooperative relationships. "There are many reasons we work together in
mini-networking sessions. One is the professional side. Lorraine brings to me
and introduces to me people who may be able to use my services. I, in turn, do
the same for her. She has taught me so much on an educational level that is
vital to my customer service role. I do a lot interaction with the children of
seniors in addition to seniors seeking our services. Financial stress and
emotional stress emerge mom and dad suddenly needs helps. Because I draw upon
Lorraine and her expertise in long-term care insurance, I am able to present
better guidance to my residents and their families."
National Advisory Board, Cooperation
I am confident similar partnerships are beginning across the nation, but I
want to encourage the key advocacy leaders of the assisted living facility to
formally convene cooperatives forums like the aforementioned programs. For
example, there are some questions that illustrate the possibilities available
through cooperative ventures.
- Why can't a national advisory committee be created to include
professionals like myself from the long-term care insurance industry and
assisted living leaders to explore ways to mutually benefit through joint
marketing and public advocacy programs?
- Why can't we foster public awareness by sponsoring joint programs to
promote information about the crisis in long-term care funding?
- Why can't we toot our own advocacy horns and show that our services
prevent unnecessary institutionalization and allow families to flourish
while those in need of long-term care received accountable and affordable,
quality care?
- Why can't we author joint letters to the editor to local newspapers and
appear together on radio, cable or network television talk shows promoting
our industries as allies in helping families and employers address the
stresses of caregiver responsibilities and aging challenges?
In conclusion, an overwhelming majority of those surveyed by the Health
Insurance Association of America indicted that they purchased long-term care
insurance because it makes them feel more secure about their future. An
astonishing number of the same group purchased long-term care insurance in order
to help their children "feel good about my retirement planning." The
MetLife Survey of Assisted Living Costs noted the average monthly base price for
assisted living facilities last year was $2,159, with New York City coming in at
the highest -- $3,696.66. Americans are concerned with the cost of healthcare
and long-term care. They are anxious about financing these costs. Assisted
living presents an affordable alternative to institutional care and isolated
living by providing an independent and flexible lifestyle. If the assisted
living and long-term care insurance industries can build strategic partnerships,
more Americans will enroll in long-term care insurance, which will help
subsidize 90 percent on average of assisted living costs. Let's begin planning
our new partnership today!
Lorraine Spiotta is a young mother and an entrepreneur who actively
participates in business groups and has clients in New Jersey. She has purchased
her own long-term care insurance policy. She can be reached at: 1-888-736-4675, lorraine@ltcareinsurance.com.
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