If you’ve been reading my columns or blog posts over the past several months, you may have noticed that the general indifference toward long-term care insurance (LTCI) among baby boomers, the government and producers who could sell it but don’t is one of my pet peeves.
With 78 million baby boomers strolling ever closer to the cusp of overloading an eldercare system that isn’t anywhere near ready for them at this point, the country needs a wakeup call.
You think the government’s going to take care of you to your satisfaction when someday down the road you need care, John Doe? Even if the CLASS Act were to (has?) become part of the government’s health insurance reform package, that’s not going to be an attractive option, John. ($50 or perhaps $100 in benefits a day? Seriously?)
We have to work to snap the baby boomers out of this malaise and make them realize procrastination is not a plan, but a mistake they will live — probably — to regret.
But there could be some light at the end of what’s been a long, dark tunnel.
One particular point of light comes in the form of the Pension Protection Act, which took effect on Jan. 1. Provisions in the PPA have opened the door for agents to actively promote the new tax benefits of life/LTC or annuity/LTC combo products. This is the kind of development that could generate some positive media attention, and lead to more annuity companies (that don’t offer traditional LTCI) entering the LTCI market.
You can read much more about the PPA’s potential impact on LTCI sales in Margie Barrie and Ron Hagelman’s article, “Follow the Yellow Brick Road” beginning on page 44.
Another point of light would be the LTC Partnership Programs, which provide a great opportunity to expand LTCI sales to middle-income Americans. Through the Partnership Program, states promote the purchase of private LTC insurance by offering consumers access to Medicaid under special eligibility rules should additional LTC coverage (beyond what the policies provide) be needed. Medicaid, in turn, benefits by having individuals take responsibility for the initial phase of their long-term care through the use of private insurance.
More than 30 states currently offer Partnership Programs, but by and large much more work needs to be done to make the public aware of these programs — and to persuade more agents to take the training necessary to sell partnership plans.