1 HEALTH CARE REFORM CLASS ACT Karey Meek-Anderson Paul Davis Class Act 2 Health Care Reform -lots of changes, lots of choices Be informed Class Act 3 Health Care Reform Patient Protection & Affordable Care Act Community Living Assistance Services & Supports (CLASS Act) Class Act 4 What is Long-Term Care? Activities of Daily Living: ~Eating~Bathing~Dressing ~Toileting~Continence~Transferring Severe Cognitive Impairment Need for assistance for at least 90 days Class Act 5 What is the Class Act? Voluntary, guarantee issued, government program that allows premium-paying participants to receive monetary assistance for long term care services. Class Act 6 Who’s Eligible? *at least 18 yrs old *receive wages that are eligible for SS tax *actively at work (at least 3 of 5 premium yrs) *not confined in hospital, NH, receiving Medicaid or have mental disabilities *not in jail Class Act 7 Law in effect Jan. 1, 2011 HHS set plan/premiums by Oct. 2012 Fully operational after 1/1/2013 Pay premiums 5 yrs before benefits payable Actively at work 3 of those 5 yrs Class Act 8 What’s the cost? Not yet determined but… The Chief Actuary of CMS says to be 75 yrs solvent, the premiums could be around $240/month. Low income and students premium will be around $5/month. Class Act 9 Benefits: Not yet determined but, at first glance- Up to $50/day cash depending on severity of the impairment. Premiums are payroll deducted and deposited into an account, for 5 yrs, that can be drawn out once eligible for benefits. Choices 10 The good news…You can do better! ~Better premiums ~Stronger benefits ~Tax free benefits ~Tax deductibility of premiums ~Act today, don’t have to wait Realities 11 Average costs in Iowa: Nursing Home - $170/day ($60k + /yr) Assisted Living - $3k /mo Home Health Care - $30 /hr RN or Physical Therapist - >$60 /hr Realities 12 Who is buying? Under 35 12% 35-44 24% 45-54 36% 55-64 23% 65-74 4.5% Survey conducted by American Association for Long-term Care Insurance Realities 13 Length of Benefit? 2 yrs 3% 3 yrs 27% 4 yrs 1% 5 yrs 61% 6-10 yrs 6% Lifetime 2% Survey conducted by American Association for Long-term Care Insurance Realities 14 Daily Benefit Amount? <$99 9% $100 - $149 33% $150 - $199 25% $200 or more 33% Survey conducted by American Association for Long-term Care Insurance Realities 15 Claims Paid To: Men 45% Women 55% Claims Paid For: Home Care 53% Assisted Living 11% Nursing Home 36% Survey conducted by American Association for Long-term Care Insurance Realities 16 2008 Average Monthly Premium by age band Low Average High 35-44 $19 $36 $54 45-54 $36 $58 $82 55-64 $63 $93 $117 65 + $127 $160 $211 Survey conducted by American Association for Long-term Care Insurance In Closing 17 Productivity Insurance Lifestyle Insurance Tax Deductible Tax Free Benefits Class out 18 Thank you for your time Any Questions? Any Comments?