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(EMAILWIRE.COM, March 30, 2008 ) Every industry refines their product over time. If we rewind and look back to when computers first came out, they were big, slow and cumbersome, using huge amounts of energy. However, they were still an improvement over adding machines and word processors and, over time, evolved into something life-altering that fits in the palm of your hand.
The long term care insurance industry is in its infancy. Twenty-four years is a short time frame to master the morbidity tables, which tell the carrier what to expect in utilization, claims duration, underwriting practices, benefit features, medical technology, pricing and rate stability, as well as long term profitability.
Patti Neighmond, of NPR, should be applauded for reaching out to Bill Vaughn, a policy analyst with Consumers Union, the group that publishes Consumer Reports magazine. NPRÂ’s goal was to be thoughtful and diligent in their report and Vaughn is considered an expert when it comes to health care issues. This is where the conversation needs to be brought to the table, especially when we look at the numbers. The National Health Expenditures (NHE) showed that, in 2006, LTC expenditures for Medicaid were $12 billion, LTC insurance $3 billion and consumer out-of-pocket $39 billion.
What most agents, planners, advisors, CPAs, attorneys, analysts, manufacturers, marketers, media and consumers know about long term care comes solely from the past, which Vaughn correctly pointed out in the article. However, the past is worthless for slowing the hemorrhaging in the public and private sector. The past is not where we are now, nor should it be, with emerging technologies like video and robotic monitoring around the corner. Where the industry operates from in the present, is where it will grow into in the future. Pioneering companies like MedAmerica, MetLife and Unum have been innovative in bringing fourth CashLTC.
Unpaid informal caregiving is the biggest hazard for American families, businesses and the US economy, which was completely overlooked in the article. We are not the only country facing this issue. Japan, Canada and Britain have universal health care and is working overtime to deal with the manpower and funding needed to address long term care. They too, know their systems are not equipped to handle the devastation of long term care. Modern financial planning for LTC must be realistic and practical. Using standard South Carolina rates with a 90 calendar day elimination period from a major carrier, the monthly premium for a 70 year-old married individual is $121.03, and for a 65 year-old it is $82.08 a month, to provide $100,000 in cash benefits that pays out $3,000 a month tax-free. How many American families have set a side $100,000 in cash ‘now’ benefits?
Isn’t it time to move the conversation to where it belongs; one team, one goal? Cash for Care is a good starting point so that families can stay afloat while doing the “heavy lifting”. LTCi planning is not just about risk, it is more about managing consequences when a failing family member needs help. Would there be value for NPR or Consumer Reports to start reporting to the American public to explore CashLTC as ‘another’ possibility? We say “Yes”!
CashLTC.org
gregg Kroman
828.628.0876
gk@cashltc.org 
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