Because things change A growing concern • 1 in 13 Canadians over age 65 is affected by dementia • 7% of Canadians age 65+ live in health care institutions • Another 28% of Canadians 65+ who don’t live in a health care institution receive care due to a long term health problem • 1 in 5 Canadians 45 years and over provide informal care to a senior Alzheimer Society website, 2004 Statistics Canada, 2002 General Social Survey Demographics – Reality! By 2011 the number of Canadians over 65 will increase by 40% to nearly 5 million. The over 80 group will almost double in size in the same period. Source: April 1998 CARP News; www.50plus.com By 2031 24% of British Columbians will be over age 65 * ‘A Profile of Seniors in BC’, Ministry of Health Health Care in BC • Health Care funding has doubled in the last decade • $3 billion added in the last 4 years • Total spending $11.6 billion 2005/2006 • Health care costs in BC have increased twice as fast as the economy. • Increased demand from an aging population • Is this sustainable? Long Term Care – What can cause it? Illness or Condition (Arthritis, MS, Stroke, Parkinson’s) There are 50,000 new strokes a year in Canada and 43% of the survivors require in-patient rehabilitation or long term care. 1 Accident or Injury (falls leading to a broken hip, car accidents) Hip fractures result in a disability in 50% of those who survive. 2 Deteriorated Mental Abilities (Alzheimer’s, Senile Dementia) Alzheimer's Disease and related dementias affect 1 in 13 Canadians over age 65. 50% of Canadians with dementia live in nursing homes, homes for the aged or retirement homes. 5 The Aging Process 1- Heart and Stroke Foundation of Canada 2- Osteoporosis Society of Canada 3- Health Insurance Association of America Guide to Long Term Care, 1999 4-Alzheimer Society of Canada. 5-Statistics Canada A life altering event can happen at any age 97% of spinal cord 30 is the injuries occur before age average age of diagnosis for 50. Multiple Sclerosis. The average age of major trauma patients is 43. MS Society of Canada website, 2005 Canadian Paraplegic Association, 2000 Canadian Institute for Health Information, 2003 If your clients need care • What is the quality of care they want to receive? • Where would they like to receive the care? • How will their families cope? • How will they pay for the care they want to receive? How much does home care cost? • Nursing care in the home ranges from $40 to $60/hr • Personal care in the home can cost between $15 and $30/hr • Homemaking can cost from $12 to $25/hr – Weekly Costs = $300.00 - $600.00 – Monthly Costs = $1,200.00 - $2,400.00 – Yearly Costs = $24,000 - $36,000.00 How much is Facility Care? Government • Public Facilities: In BC cost is $4500. You pay according to your family income – government subsidizes the remainder • Current rates – based on a per diem starting at $29.10/day ++ or ($873 - $2200 /month) Income Testing / the higher your income the more you pay Private • Assisted Living: $1500 - $2500+/month • Private Facilities: $3000 - $5000+/month (Annual Costs = $30,000 - $70,000) Funding options Savings and assets Insurance How long will savings last? $400,000 No care needs Care needs $300,000 Assumptions: • 6% rate of return $200,000 • Initial $2000 monthly cost of $100,000 care indexed to 2% inflation $0 • No tax on 0 2 4 6 8 10 withdrawals Year Costs for caregivers More than 1/3 incur extra expenses One in 10 reduce their hours of work One in 10 report health problems Statistics Canada, 2002 General Social Survey WHERE WILL THE MONEY COME FROM? Are you confident that our Government can pay for all Health Care costs. For everyone? Forever? Or will you be partially or wholly responsible? WHO WILL PAY YOUR CLIENTS OR THE GOVERNMENT? “British Columbians should be encouraged to purchase LTC insurance to provide for their future health care needs”. Patients First Report: Renewal and Reform of British Columbia’s Health Care System. Select Standing Committee Report on Health (2001) What is long term care insurance? Helps cover the costs of long term care services Benefits are payable when you are physically dependent: • Require assistance from another person to perform 2 or more of the 6 activities of daily living (bathing, dressing, feeding, toileting, transferring, continence), or • Require continual supervision because of deteriorated mental ability Not all policies are the same When your clients need care: 1. Reimbursement plans pay you back for eligible expenses you receive on a given day, up to a pre-determined daily maximum 2. Indemnity plans pay a pre-determined daily benefit if you receive an eligible expense on that day 3. Income plans provide a pre-determined weekly benefit, and you don’t have to prove you received any eligible expenses Can a Long Term Care Situation Happen to One of your clients? If an accident or illness changes your clients life… If your clients or their loved ones need help with everyday activities . . . Do they have a plan? We all would like to think that we are invincible… He Only Fell Four Feet! What questions do you have?