PERS joins public private partnership to finance long-term care.SACRAMENTO, Calif.--(BUSINESS WIRE)--Jan. 13, 1995--The California Department of Health Services Department of Health Services may refer to:
DHS Department of Human Services DHS Department of Health Services DHS Demographic and Health Surveys DHS Dirhams (Morocco national currency) ) Friday announced that the California Public Employees Retirement System (PERS a. 1. Light blue; grayish blue; - a term applied to different shades at different periods. ) is an approved participant in the California Partnership for Long-Term Care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. . Effective immediately, PERS will be able to offer long-term care coverage that will also protect assets if the purchaser later applies for Medi-Cal. The California Partnership for Long-Term Care, launched by the Wilson Administration in July 1994, is an alliance between state government and the private sector to make affordable, lifetime long-term care protection available to Californians. "We announce the approval of the PERS Partnership plan with great enthusiasm because through PERS, public agency employees and their families will be offered high-quality, affordable long-term care protection," said State Health Director Kim Belshe. PERS members will be able to purchase coverage for themselves or for relatives, including parents, parents-in-law, and spouses. But this program is not just limited to PERS members. Also eligible will be members of the State Teacher's Retirement System (STRS STRS State Teachers Retirement System STRS Sir Thomas Rich's School (UK) STRS Stimulated Thermal Rayleigh Scattering STRS Supplier Test Report System STRS Straight Talk Retirement System (software) ), which administers retirement plans for California public school teachers, and most county employees and retirees, parents, parents-in-law, and spouses. This translates into a potential market of nearly 4 million people. The self-funded PERS Long-Term Care program will include both Partnership and non-Partnership long-term care plans. Partnership plans should be especially attractive to pre-retirees, retirees and parents who feel they cannot afford traditional lifetime coverage. The PERS Partnership Plan offers comprehensive coverage (in-home, community, residential care facility, and nursing home care) with a unique asset protection feature. Each dollar the PERS Partnership Plan pays out in benefits for long-term care services entitles the PERS member to protect a dollar of his or her assets. Should the member ever apply for Medi-Cal, he or she would not have to "spend down" these protected assets. Even when the member died, these assets would also be protected from Medi-Cal estate recovery. "We need to get the word out that planning for long-term care is really a missing link in financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against for most Californians," said Dr. William Crist, CalPERS board chairman. "Most consumers begin thinking about nursing home or community care coverage when they're in their sixties or seventies. We want to offer these people some exciting new options, but we also want to reach younger individuals because coverage is even more affordable when you're young." The PERS program holds great promise because it will reach large numbers of pre-retirees and help them begin thinking about the future. Few realize that nearly half of all women and a third of all men who turn 65 will spend some time of their remaining years in a nursing home. Many falsely assume they have coverage for such care, and they don't realize how costly it can be. In addition to PERS, seven major long-term care companies are approved participants Approved Participants Institutional investors who are allowed direct access to an exchange's trading environment. Approved participant status usually affords trade execution cost savings and the right to install trading terminals in client offices. in the California Partnership for Long-Term Care. They are: AMEX AMEX See: American Stock Exchange Life Assurance Co., Bankers Life and Casualty Bankers Life and Casualty is primarily a health insurance company in the United States. It was founded in 1879 and was previously known as White Cross. It was formerly owned by millionaire investor John D. Insurance Co., CNA (Certified NetWare Administrator) See Novell certification. Insurance, John Hancock Mutual Life Insurance, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Life Insurance, Time Insurance, and Transamerica Occidental oc·ci·den·tal or Oc·ci·den·tal adj. Of or relating to the countries of the Occident or their peoples or cultures; western. n. A native or inhabitant of an Occidental country; a westerner. Noun 1. Life Insurance Co. Individuals who are ineligible in·el·i·gi·ble adj. 1. Disqualified by law, rule, or provision: ineligible to run for office; ineligible for health benefits. 2. for the PERS Long-Term Care Program because they are not public employees, teachers or family members can still purchase Partnership long-term care coverage from one of these participating insurance companies. Consumers may call an agent affiliated with a participating insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. or call 800/434-0222 Monday through Friday between 9 a.m. and 3:30 p.m. to receive more information on the California Partnership for Long-Term Care. For more information on the PERS Long-Term Care program, call 800/338-2244. -0- QUESTIONS AND ANSWERS ABOUT THE CALIFORNIA PARTNERSHIP FOR LONG-TERM CARE What is long-term care? Long-term care coverage will benefit people who need some help caring for themselves due to a prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. chronic illness, injury or cognitive impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. . It can range from assistance with activities of daily living, such as bathing or dressing, to skilled care in a nursing home. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bureau of the Census Noun 1. Bureau of the Census - the bureau of the Commerce Department responsible for taking the census; provides demographic information and analyses about the population of the United States Census Bureau , the population over 75, the age at which more people begin to need long-term care, is projected to grow 46 percent in the next two decades. Why is planning for long-term care so important? The annual cost of nursing home care in California can range from $31,000 to $38,000, and the average length of stay in a nursing home in 2.5 years. Since the median net worth of households headed by those of retirement age is $73,471, it is clear that just two years in a nursing home could result in poverty for many Californians who fail to plan for it effectively. A recent California Association of Health Facilities survey found that more than 70 percent of those polled felt that they would be unable or hard-pressed to pay for long-term care for themselves or for a loved one. Won't my health insurance or Medicare cover the costs of lengthy nursing home services? While Medicare may cover some long-term care costs, that coverage is generally approved only for short periods of time. Neither Medicare nor general health insurance covers lengthy nursing home stays or extended home care services. That helps to explain why 20 percent to 25 percent of all those who enter nursing homes as private payers end up on Medi-Cal after exhausting their life savings. What is the California Partnership for Long-Term Care? The California Partnership for Long-Term Care is an alliance between state government and private insurance companies to bring affordable, lifetime long-term care coverage to Californians. It is part of a national pilot program -- similar programs are currently under way in Connecticut, Indiana and New York. How is it funded? Implementation of the California Partnership is funded through a $2.1 million grant from the Robert Wood Johnson Foundation Robert Wood Johnson Foundation, charitable organization devoted exclusively to health care issues. It was established in 1936 by Robert Wood Johnson (1893–1968), board chairman of the Johnson & Johnson medical products company. , the nation's largest private philanthropic phil·an·throp·ic also phil·an·throp·i·cal adj. 1. Of, relating to, or marked by philanthropy; humanitarian. 2. Organized to provide humanitarian or charitable assistance: organization dedicated to improving the health and health care of Americans. How do the Partnership policies work? Under current California law California Law consists of 29 codes, covering various subject areas, the State Constitution and Statutes. See also
Under the Partnership program, a person who buys a state-certified policy is entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to keep additional assets, equal to the amount his or her insurance pays out, and still receive Medi-Cal benefits. Individuals will still need to use their incomes to pay their share of the cost. When a policyholder Policyholder An individual who owns an insurance policy. requires long-term care (whether in a nursing home or at home), he or she will first receive benefits under their certified See certification. private insurance policy. If the policyholder requires care above and beyond what the policy provides the individual can apply for Medi-Cal without impoverishing himself or herself. This dollar-for-dollar approach allows for a variety of product designs, with benefits ranging from one year to five years of coverage. The program encourages individuals to plan for their long-term care needs by offering affordable, quality protection to people with varying financial means. What are the benefits of asset protection? The asset protection feature of the Partnership policies promises buyers freedom from the worry that nursing home or community care expenditures could wipe out wipe tr.v. wiped, wip·ing, wipes 1. a. To subject to light rubbing or friction, as with a cloth or paper, in order to clean or dry. b. a lifetime of savings. Under the Partnership, protected assets can be used any way a person chooses, including as gifts to one's children. Unprotected assets must still be spent down prior to qualification for Medi-Cal. Does the asset protection apply even after my death? Absolutely. Protection under the Partnership policies means that heirs will be entitled to the assets so carefully protected for them. What kinds of policies will be offered through the Partnership? Two types of Partnership policies will be available -- a "nursing facility and residential care facility only" policy and an integrated policy that also includes home and community-based care Community-based care for orphans describes care for orphaned children by those who are not the biological parents but are able to provide individual care and nurture in the context of a family and community. . How can I be sure that the Partnership policies are reliable and high-quality? A working group comprised of consumers, insurers, providers and state officials developed tough consumer standards and reporting requirements that insurance companies will have to meet in order to qualify their policies as "Partnership policies." These standards and requirements are even higher than those currently mandated under state law. All agents selling Partnership policies must complete eight hours of initial training (in addition to the long-term care training already required under the Insurance Code), plus ongoing training prior to each relicensure. The State of California will closely monitor implementation of the Partnership program to ensure that these tough standards of quality are met. In addition to the asset protection feature, in what other ways are the long-term care insurance policies sold through the California Partnership different from the traditional long-term care policies? Partnership policies have been standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. to make the terms and benefits more understandable and comparison of policies easier; there are benefits in Partnership policies that are not generally available in other long-term care insurance policies, such as mandatory inflation protection; and Partnership policies must meet higher consumer protection standards. What are the consumer protection standards governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. the Partnership policies? All long-term care policies sold under the Partnership must meet or exceed special consumer protection standards. All Partnership policies must include: eligibility for benefits based on functional or cognitive limitations; minimum daily benefits established by the Department of Health Services to guarantee meaningful coverage; mandatory automatic inflation protection to assure that your coverage will keep pace with the expected increases in the cost of care; assessments and care plans drawn up by independent care management agencies that meet standards developed by the Partnership; requirements aimed at keeping coverage affordable and in place through provisions governing future rate increases, and the offering of a "step down" policy should you not be able to afford your premiums in the future; and a forgetfulness Forgetfulness See also Carelessness. Absent-Minded Beggar, The ballad of forgetful soldiers who fought in the Boer War. [Br. Lit.: “The Absent-Minded Beg-gars” in Payton, 3] absent-minded professor clause to protect individuals who may be suffering from Alzheimer's or similar diseases. How much will the policies cost? Partnership premiums are age-related, meaning that the older the purchaser, the more expensive the policy. On average, a 65-year-old can expect to pay an annual premium of $822 for a "facility only" policy, and $1,021 for an "integrated policy" that will pay for one year of care and protect $36,500 in assets. If the 65-year-old has only $36,500 in countable (mathematics) countable - A term describing a set which is isomorphic to a subet of the natural numbers. A countable set has "countably many" elements. If the isomorphism is stated explicitly then the set is called "a counted set" or "an enumeration". assets, Medi-Cal is then available to pay for care beyond the one year's worth of insurance. In general, premiums are level unless a general increase is approved by the California Department of Insurance The California Department of Insurance (CDI), established in 1868, is the angency charged with overseeing the regulation of insurance regulations, enforcing statutes mandating consumer protections, educating consumers, and fostering the stability of insurance markets in the state , but the lifetime maximum payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. (and therefore the potential asset protection) increases by 5 percent each year. Will these policies keep pace with inflation? Yes. Daily and monthly benefits, as well as lifetime maximum payouts, will increase at a rate of 5 percent compounded annually. Who should purchase these policies? Californians concerned with preparing financially for their long-term care needs should consider purchasing these policies. However, the primary target market for the sale of these policies is individuals between the ages of 55 and 74, with no disabling dis·a·ble tr.v. dis·a·bled, dis·a·bling, dis·a·bles 1. To deprive of capability or effectiveness, especially to impair the physical abilities of. 2. Law To render legally disqualified. health conditions. The Partnership option will be especially attractive to middle-income individuals who would be financially devastated dev·as·tate tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. by a nursing home stay of one year or more. The Partnership is attempting to reach not only those Californians of retirement age who may be more focused on their long-term care requirements, but also those who may be helping their parents meet their needs and not yet considering their own needs. The important message: plan and prepare for long-term care now, before you need it. How can I purchase the Partnership policies? The Partnership policies can be purchased only from private insurers whose policies are reviewed and approved by the Partnership. At this time, insurance companies approved by the Partnership include AMEX Life Assurance Co., Bankers Life and Casualty Co., CNA Insurance Cos., John Hancock Mutual Life Insurance Co., New York Life, Time Insurance Co. and Transamerica Occidental Life Insurance Co. Additional insurers may apply for Partnership approval -- contact the California Partnership for Long-Term Care at 916/657-0654 for an updated list. Potential buyers can also find out more about the Partnership (as well as other long-term care financing options) by calling 800/434-0222 Monday through Friday from 9 a.m. to 3 p.m. Volunteers, trained by the state Department of Aging, are available at 24 sites statewide to assist consumers with any questions they may have. -0- Approved Participants in the CA Partnership for Long-Term Care
Participant Phone Number
AMEX Life Assurance Co. 800/354-6896
Bankers Life and Casualty Co. 800/657-3724 ext. 7307
PERS Long-Term Care Program 800/338-2244
(a long-term care plan for CA public employees & their families)
CNA Insurance Cos. 800/327-2430
John Hancock Mutual Life Insurance Co. 800/543-6415
New York Life Insurance Co. 800/635-3660
Time Insurance Co. 800/736-3660
Transamerica Occidental Life Insurance Co. 800/690-2758
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PARTICIPATING INSURERS
AMEX LIFE ASSURANCE CO. JOHN HANCOCK MUTUAL LIFE INSURANCE
Bob Dawson CO.
Director of Consumer Affairs Joan Melanson
1650 Los Gamos Drive Brand Manager, Long-Term Care
San Rafael, Calif. 94903-1899 200 Clarendon St.
415/492-7673 P.O. Box 111, T-52
Boston, Mass. 02117
617/572-6489
BANKERS LIFE AND CASUALTY CO. NEW YORK LIFE
Tony Waytula Mary Hynes
Vice President, Product Assistant Vice President
Development/Training 51 Madison Ave.
222 Merchandise Mart Plaza New York, N.Y. 10010
Chicago, Ill. 60654-2001 212/576-5141
312/396-7278
PUBLIC EMPLOYEES RETIREMENT TIME INSURANCE CO.
SYSTEM (PERS) Karen Borowski
Craig Hartung Marketing Director, Long-Term Care
Chief, Information & Program 501 W. Michigan
Development Division P.O. Box 3050
400 P St., Room 2130 Milwaukee, Wis. 53201-3050
Sacramento, Calif. 95814 414/299-7851
916/326-3900
CNA INSURANCE COS. TRANSAMERICA OCCIDENTAL LIFE
Carrie Rosen INSURANCE CO.
Media Relations Manager Debra Newton
CNA Plaza Senior Public Relations
Chicago, Ill. 60685 Representative
312/822-5189 1150 S. Olive St, Suite T1319
Los Angeles, Calif. 90015
213/742-2977; 213/704-2739 (pager)
CONTACT: Department of Health Services, Sacramento Lynda Frost 916/657-3064 Lora Connolly, 916/657-0654 |
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