Do You Have A Plan for the Future? Riverside s New Program for Retirement Planning

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(1)

Do You Have A Plan for the

Future?

Riverside’s New Program for

Retirement Planning

(2)

Agenda

I. Long-term Care Overview

II.Options for Planning Ahead III.What is ChooseHome?

(3)

What is Long-term Care?

Long-term care are any services that are needed over a long-period of time. They may or may not be

directly healthcare related. Common Examples:

 Transportation  Meal Assistance

 Emergency Alert Systems

 Home Health Aides  Assisted Living

 Nursing Homes

Long-term care is not typically covered

by Medicare.

(4)

How much long-term care will I use?

70%

of people turning 65 today will need

long-term care

According to the US Department of Health and

Human Services, the average individual will

need

3 years

of long-term care.

(5)

How much does long-term care cost?

“In Virginia, the annual cost of an assisted-living facility is $45,300, an increase of 5 percent annually during the past five years. The national average is $41,400 and has

increased about 4 percent annually during the past five years.

The cost of a private nursing home room has risen 4.7 percent annually during the past five years in Virginia to

$83,950. That’s the same as the national average, which

rose 4.5 percent annualized during the past five years.”

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If you were to use 5 years of

long-term care, it might cost:

Cost per year1 Total Cost

Home Care Assisted Living 1 years 2 years $41,184 $45,300 $41,184 $90,600 Skilled Nursing Care 2 years $83,950 $167,900

$299,684

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Future of Long-term Care

Agingstats.gov

This “age wave” will have several negative effects on long-term care: • Increased demand will limit access • Costs will continue to rise • General quality may suffer

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Options for Planning Ahead

Other options have traditionally included:

 Continuing Care Retirement Communities

 Long-term Care Insurance

 Other Financial Tools (i.e. annuities)

“One option is to ignore long-term care risk entirely and simply depend on your own assets to meet the

financial need, when and if it should arise. As movie character Dirty Harry might say, ‘Do I feel lucky?’”

(9)

Exploring new options:

CCRC’s are an excellent way to extend independence and have a safety net of health care services readily

available. This “continuum” appeals to a lot of people. But, surveys by AARP show that 9 out of 10 people

over the age of 65 want to remain in their homes. If they choose to remain at home, only financial protection is available. Not access to services,

reassurance as to the quality, or a coordinator to help navigate their needs.

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A New Option for Retirement

Planning…

ChooseHome

ChooseHome is a comprehensive plan that is

designed to help you stay independent and in

your home for as long as possible

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What does ChooseHome

provide?

ChooseHome provides members with access to a

personalized, coordinated array of quality Riverside or Riverside-approved services that focus on

maintaining your quality of life.

ChooseHome also provides you with the ability to gain control over the costs of long-term care, as the fees paid into the program protect you against

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ChooseHome Services

ChooseHome will provide an array of services all organized by a personal service coordinator.

Examples of program services include: • Wellness Assessments

• RiversideAlert

• Medication Dispensing

• Transportation

• Homemaker/Companion Care

• Home Health Aides

• Adult Day Services

• Assisted Living (Facility-based)

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ChooseHome Services

Plans:

Comprehensive: 100% Coverage with a $250 per day cap

Premium: Coverage ranging from 75% to 100% with a $200 per day cap

Choice: Coverage ranging from 50% to 100% with a $150 per day cap

Terms:

The benefit term is a “pool” or “bucket” of days you can draw from. It begins when you start receiving long-term care

services and is determined cumulatively, not consecutively.

• 1,095 days

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ChooseHome Fees

Fees are determined by three factors:

1. Age at entry (minimum age of 60)

2. Benefit Plan

3. Length of coverage

There is an initial investment as well as monthly investment.

Couples receive discounts.

Entrance fees are refundable – amortize over a

three or five year period.

Fees may be applied to income tax deductions as a

(15)
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How much does it cost?

1. There will be an initial investment (entrance fee) as

well as monthly fee (please note: fees can be applied to income tax deductions as a pre-paid medical expense). 2. For the average 70 year old the entrance fee would

range from about $12,000 to $41,000.

3. Monthly fees for the average 70 year old would range from about $370 to $460.

4. Couples will receive discounts.

5. Entrance fees are refundable or partly refundable – amortized (decline) over a three or five year period.

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What are the expected eligibility

requirements?

ChooseHome membership is available to

those:

60 years of age or older

Living independently in their home with

no indication of cognitive impairment

(18)

My doctor is not with Riverside,

do I have to change?

No. The program is designed to partner

with you to meet your health care goals no

matter who your physician is.

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References

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