This morning, I was on Diane Rehm's NPR radio show talking about long-term care insurance. The other guests--former Social Security Administrator Ken Apfel, Families USA executive director Ron Pollack, and Kiplinger's Personal Financec olumnist Kim Lankford--and I agreed on one thing: Private LTC insurance is an appropriate tool for some consumers, but it is not a realistic alternative for many others. The challenge is [...]
A Pennsylvania state appeals court has ruled that the adult son of a nursing home resident is responsible for her unpaid $93,000 bill. And the decision has some elder care lawyers wondering if this is just the beginning of a trend. Pennsylvania is one of 30 states that have filial responsibility statutes—laws that impose a duty on adult children to [...]
Senator Bob Corker (R-Tenn) warned today that long-term care financing is "a major train wreck" and "heading for a national crisis." Corker, the senior Republican on the Senate Aging Committee, said he was very worried about the viability of private long-term care insurance and added , "there is no doubt there is a public sector role" in the future of financing [...]
Why not make insurance for long-term care services and supports part of health care coverage? It is a radical idea that turns the current model—which often treats long-term care insurance as an element of retirement planning—entirely on its head. The concept isn’t new. John Rother, who ran public policy for AARP for many years, talked about integrating long-term services and [...]
Since last year's demise of the CLASS Act, those of us worried about how the U.S. will finance the long-term care needs of the frail elderly and younger adults with disabilities have been looking for an opportunity to reopen the issue. Today, in a small first step in that direction, about two dozen state and federal officials, advocates, insurance company executives, and researchers met [...]
My best guess is that Congress will formally repeal the CLASS Act in 2012. Already abandoned by the Obama Administration, CLASS has no champion on Capitol Hill and is likely to fall victim to implacable Republican opposition and a lack of Democratic support. Thanks to technical budget rules, Congress can now kill the national, voluntary long-term care insurance program without [...]
Private long-term care insurance can be an important tool to protect against the risk of needing costly personal assistance in old age. But two respected financial economists conclude it is very expensive relative to the benefits it provides and may not be appropriate for many buyers. At the same time, a new consumer brief from the Society of Actuaries suggests how much wealth you should have for coverage to make sense. The research paper from economists [...]
In the wake of the White House decision to abandon the CLASS Act, policy analysts are struggling to find some workable solution to the growing problem of how to finance long-term care costs. So how about using Social Security? One versionof this idea was proposed years ago by Yung-Ping Chen, now professor emeritus of gerontology at the University of Massachusetts. He'd let Social Security recipients trade off a small portion [...]
On Tuesday, Nov 8, I'll be moderating an important discussion on the future long-term care in an era of shrinking government. My fellow panelists will be Robyn Stone, author of Long-Term Care for the Elderly and senior vice president for research for LeadingAge, a trade group that represents non-profit providers ; Len Fishman, the CEO of Hebrew Senior Life, an innovative senior services provider in Boston, [...]
It may be possible to design a modest government-run voluntary long-term care insurance program that is financially viable. It isn't easy, would probably enroll only about 2 million people, and would take some substantial revisions to the program as imagined by the Community Living Assistance Services & Supports (CLASS)Act. But it might be possible. That at least is the message buried in the reams of documents released [...]