Do You Have A Plan for the Future? Riverside s New Program for Retirement Planning

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Shanon Turner
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1 Do You Have A Plan for the Future? Riverside s New Program for Retirement Planning

2 Agenda I. Long-term Care Overview II.Options for Planning Ahead III.What is ChooseHome? IV.Frequently Asked Questions

3 What is Long-term Care? Long-term care are any services that are needed over a long-period of time. They may or may not be directly healthcare related. Common Examples: Transportation Meal Assistance Emergency Alert Systems Home Health Aides Assisted Living Nursing Homes Long-term care is not typically covered by Medicare.

4 How much long-term care will I use? 70% of people turning 65 today will need longterm care According to the US Department of Health and Human Services, the average individual will need 3 years of long-term care. 20% will need care for more than 5 years

5 How much does long-term care cost? In Virginia, the annual cost of an assisted-living facility is $45,300, an increase of 5 percent annually during the past five years. The national average is $41,400 and has increased about 4 percent annually during the past five years. The cost of a private nursing home room has risen 4.7 percent annually during the past five years in Virginia to $83,950. That s the same as the national average, which rose 4.5 percent annualized during the past five years. Richmond Times - Dispatch April 14, 2013

6 If you were to use 5 years of longterm care, it might cost: Cost per year 1 Total Cost Home Care 1 years $41,184 $41,184 Assisted Living 2 years $45,300 $90,600 Skilled Nursing Care 2 years $83,950 $167,900 $299,684 1: Genworth cost of care survey 2013 Virginia state median

7 Future of Long-term Care Agingstats.gov This age wave will have several negative effects on long-term care: Increased demand will limit access Costs will continue to rise General quality may suffer

8 Options for Planning Ahead One option is to ignore long-term care risk entirely and simply depend on your own assets to meet the financial need, when and if it should arise. As movie character Dirty Harry might say, Do I feel lucky? Jay McDonald, Bankrate.com Other options have traditionally included: Continuing Care Retirement Communities Long-term Care Insurance Other Financial Tools (i.e. annuities)

9 Exploring new options: CCRC s are an excellent way to extend independence and have a safety net of health care services readily available. This continuum appeals to a lot of people. But, surveys by AARP show that 9 out of 10 people over the age of 65 want to remain in their homes. If they choose to remain at home, only financial protection is available. Not access to services, reassurance as to the quality, or a coordinator to help navigate their needs.

10 A New Option for Retirement Planning ChooseHome ChooseHome is a comprehensive plan that is designed to help you stay independent and in your home for as long as possible

11 What does ChooseHome provide? ChooseHome provides members with access to a personalized, coordinated array of quality Riverside or Riverside-approved services that focus on maintaining your quality of life. ChooseHome also provides you with the ability to gain control over the costs of long-term care, as the fees paid into the program protect you against potentially catastrophic expenses.

12 ChooseHome Services ChooseHome will provide an array of services all organized by a personal service coordinator. Examples of program services include: Wellness Assessments RiversideAlert Medication Dispensing Transportation Homemaker/Companion Care Home Health Aides Adult Day Services Assisted Living (Facility-based) Skilled Nursing (Facility-based)

13 ChooseHome Services Plans: Comprehensive: 100% Coverage with a $250 per day cap Premium: Coverage ranging from 75% to 100% with a $200 per day cap Choice: Coverage ranging from 50% to 100% with a $150 per day cap Terms: The benefit term is a pool or bucket of days you can draw from. It begins when you start receiving long-term care services and is determined cumulatively, not consecutively. 1,095 days 2,555 days

14 ChooseHome Fees Fees are determined by three factors: 1. Age at entry (minimum age of 60) 2. Benefit Plan 3. Length of coverage There is an initial investment as well as monthly investment. Couples receive discounts. Entrance fees are refundable amortize over a three or five year period. Fees may be applied to income tax deductions as a pre-paid medical expense.

15 Frequently Asked Questions

16 How much does it cost? 1. There will be an initial investment (entrance fee) as well as monthly fee (please note: fees can be applied to income tax deductions as a pre-paid medical expense). 2. For the average 70 year old the entrance fee would range from about $12,000 to $41, Monthly fees for the average 70 year old would range from about $370 to $ Couples will receive discounts. 5. Entrance fees are refundable or partly refundable amortized (decline) over a three or five year period.

17 What are the expected eligibility requirements? ChooseHome membership is available to those: 60 years of age or older Living independently in their home with no indication of cognitive impairment Residing in the service area

18 My doctor is not with Riverside, do I have to change? No. The program is designed to partner with you to meet your health care goals no matter who your physician is.

19 Questions?

LIFE CARE AT HOME: Agenda. Risks and Opportunities

LIFE CARE AT HOME: Agenda. Risks and Opportunities LIFE CARE AT HOME: Risks and Opportunities SESSION 99-G, LEADINGAGE ANNUAL MEETING OCTOBER 30, 2013 DALLAS, TEXAS Agenda Introduction Program description Why develop Life Care at Home Challenges Approaches