Strategies for Educating Consumers About Financing Long Term Care (Anne Tumlinson Slides)

Paying for Long-Term Care THE RISK EVERYONE FACES – Especially Women MAY 2016

ANNE TUMLINSON INNOVATIONS

I.

LTC NEED IS AN INSURABLE RISK

II.

FEW PEOPLE FACE THIS RISK PREPARED

III.

INSURING EVERYONE WOULD INCREASE SPENDING BY 30%

ANNE TUMLINSON INNOVATIONS

Half of Older Adults Develop High Need

ANNE TUMLINSON INNOVATIONS

Favreault, Melissa and Judith Dey. Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief. Office Of the Assistant Secretary of Planning and Evaluation, U.S. DHHS, Revised February 2015

A Quarter Live 5+ Years With High Level of Need 52% 36%

15%

23%

26%

2-5

5+

% of High Need

65+

<1

1-2

YEARS OF HIGH LEVEL NEED Source : The Urban Institute 7/13/2015

ANNE TUMLINSON INNOVATIONS

Favreault, Melissa and Judith Dey. Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief. Office Of the Assistant Secretary of Planning and Evaluation, U.S. DHHS, Revised February 2015

Care For High Need Costs $260,000 On Average 52%

Source : The Urban Institute 7/13/2015

ANNE TUMLINSON INNOVATIONS

Favreault, Melissa and Judith Dey. Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief. Office Of the Assistant Secretary of Planning and Evaluation, U.S. DHHS, Revised February 2015

For 30%, $250k is the Minimum 52% Individuals with Expenditures 30%

30%

22% 18%

$1 - $49,999

ANNE TUMLINSON INNOVATIONS

$50,000 - $99,999

$100,000 - $249,999

$250,000+

Adapted From Favreault, Melissa, Gleckman, Howard and Richard W. Johnson How Much Could Financing Reforms for Long-Term Services and Supports Reduce Medicaid Costs? The Urban Institute. February 2016.

Over Half is Financed Through Personal Savings Individuals Turning 65 in the Next 5 Years Will Pay Over ½ of the Average Lifetime Cost Out of Savings

ANNE TUMLINSON INNOVATIONS

Favreault, Melissa and Judith Dey. Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief. Office Of the Assistant Secretary of Planning and Evaluation, U.S. DHHS, Revised February 2015

Insuring Everyone Increases $$s Spent on LTC Services Combined Out of Pocket and Insurance LTC Spending Increases 15 â&#x20AC;&#x201C; 30 Percent When Everyone is Insured $70 0

Dollars in Billions

$ 624

$60 0

$ 4 68

$50 0 $4 0 0 $30 0

$ 256

$ 220

St at us Quo Insurance

$20 0 $10 0 $0 20 30 ANNE TUMLINSON INNOVATIONS

20 4 0

Favreault, Melissa, and Richard W. Johnson Microsimulation Analysis of Financing Options for Long-Term Services and Supports The Urban Institute Research Report November 2015