Protecting your employees by providingquality health benefits can be the key tokeeping them happy and productive. As amember <strong>of</strong> the <strong>Home</strong> <strong>Builders</strong> <strong>Association</strong><strong>of</strong> <strong>Virginia</strong>, you could get special, costsavingfeatures through Anthem BlueCross and Blue Shield on plans designedspecifically for you. Your job gets easier,it may cost less than you think and youget everything from one company withone call. Learn more about how we canhelp you by contacting Jim Bonnell withHBAV Insurance Agency Inc. at 800-734-6344 or jbonnell@hbav.com.
We are living longerIt’s time to start thinking more long termby Jim Bonnell, LUTCF, director <strong>of</strong> member benefits servicesm em b er b en efits u p dat eIt’s unquestionable that many Americans are living longer andspending more time in retirement than ever before. It’s veryrealistic for a 50-year-old to look forward to another 30-plusyears <strong>of</strong> life, almost nine years longer than life expectancy in1900. This greater life expectancy is due to advances in science,technology and more sophisticated health care screening testsand procedures.While this longer life expectancy is certainly a positive for usAmericans, it also requires us to deal with some very real issuesthat weren’t as prevalent to our parents or grandparents.The oldest <strong>of</strong> the estimated 77 million baby boomers beginreaching retirement age in 2008, creating a tremendous socioeconomiccrisis for our country.As a fact <strong>of</strong> life, the older we get the more chances wehave <strong>of</strong> developing health issues. This isn’t an easy subject becausenobody likes to think they could become ill or physicallydisabled in any way. Most Americans prefer the head-in-the-sandapproach. However the likelihood we’ll need some level <strong>of</strong> assistancein our senior years is very real.What is long-term care?Long-term care (LTC) is used to describe a broad group <strong>of</strong>services that have one thing in common: providing human assistancewith activities <strong>of</strong> daily living (ADL). I’m sure most <strong>of</strong> youreading this can think <strong>of</strong> elderly family members or friends whoat some point in their life needed help getting in and out <strong>of</strong>bed, eating, bathing or getting dressed. If they weren’t fortunateto have a close family member with a big heart to take care<strong>of</strong> them, they more than likely spent a lot <strong>of</strong> their assets (ormaybe yours) to hire someone to help with their care.Contrary to what most Americans believe, regular healthinsurance, Medicare and supplemental policies aren’t designedto cover LTC expenses. These traditional health insurance plansare designed to help with more acute care like doctor visitsor hospital stays — conditions that don’t require physical orstandby assistance for periods longer than 100 days.The costs <strong>of</strong> LTC are really eye-opening. In a 2006 “Cost<strong>of</strong> Care” study by Genworth Financial, the national annual cost<strong>of</strong> a private room in a nursing home averaged $70,912, or$194 per day. The same study also found that home healthcare aides average $25.32 per hour. That would cost a familymore than $1,400 per week if an aide were there for justeight hours a day.These expenses can be devastating to a family if it’s notprepared for them. According to the Census Bureau, only 7percent <strong>of</strong> American seniors have enough saved up to covereven one year <strong>of</strong> nursing home care.“My family will take care <strong>of</strong> me”When asked what they would do if something happenedto them that left them unable to perform ADL, most peoplerespond, “My family will take care <strong>of</strong> me.” While every familyis different, there are a few importantfactors to consider here.First, the size <strong>of</strong> the American familyis generally getting smaller. Second, withthe increase in female pr<strong>of</strong>essionals inthe workplace, <strong>of</strong>ten both spouses aremore career focused and working longerhours. Third, our children are movingfarther away from home than they didin previous generations. All <strong>of</strong> thesebonnellfactors lead to fewer adult childrenwho can, or are willing to, take care <strong>of</strong> an elderly parent.What about Medicaid?Medicaid is a government-sponsored program that requiresthe participants to spend down their assets to required levelsto qualify. If you have very little assets to protect, then thismay be an appropriate option. However, most families have ahome or retirement funds they want to preserve for a spouseor children, and these assets may need to be liquidated beforeany benefits would be payable.Long-Term Care Insurance:Peace <strong>of</strong> mind and choicesA Long-Term Care Insurance (LTCI) policy provides peace <strong>of</strong>mind and can protect assets you have worked so hard for duringyour life. Often, those with LTCI have more choices and greaterquality <strong>of</strong> care than those who try to fund the care themselves.Almost all policies today will provide benefits whether youare receiving care in your own home, in an assisted-living facilityor in a nursing home. The policies continue to evolve and arevery customizable to meet individual needs.LTCI: Is it worth it?Few people regret purchasing car insurance or home insurancepolicies when an accident takes place. The coverage earned is fargreater than the annual premiums paid, especially when you considerthe alternative: paying for a new car or a new home out-<strong>of</strong>-pocket.The same is true <strong>of</strong> LTCI. The benefits paid out under an LTCIpolicy for one year alone <strong>of</strong>ten exceed the cumulative premiumsa client pays into a policy during a 15- or 20-year period.LTCI and HBAV — A membership benefitHBAV is introducing LTCI to all members at reduced premiums.As a member <strong>of</strong> HBAV you’ll be eligible for a sponsoredgroup discount.Please note: LTCI has significant tax advantages for self-employedindividuals, employers or employees if it’s paid by thebusiness or employer.For more information about long-term care and Long-TermCare Insurance, call me at (804) 643-2797 or send an e-mailto jbonnell@hbav.com. VAB<strong>April</strong> <strong>2007</strong> <strong>Virginia</strong> Builder 31
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