Health Insurance Options for Long-Term Care Julie Sonier Assistant Director, Health Economics Program Minnesota Department of Health September 10, 2004.

Slides:



Advertisements
Similar presentations
LTC and the Employer LTC Advisory July Todays Employer Workplace The aging of America is, predictably, having an impact on business The child care.
Advertisements

Health Savings Accounts: Early Estimates Of National Take-Up Roger Feldman, Stephen T. Parente, Jean Abraham, Jon B. Christianson and Ruth Taylor
Overview of Health Care Coverage and Cost Trends in Minnesota Presentation to the State Budget Trends Study Commission April 22, 2008 Julie Sonier Director,
What Is Long Term Care?. u Long Term Care is an ever changing array of services aimed at helping people with chronic conditions cope with limitations.
Health Savings Accounts (HSAs) Everything You Need to Know.
Consumer Directed Healthcare Plans What they are and how they work
Profiles of HSA Users Roy Ramthun April Meet Roy Mr. HSA.
First State Bank is pleased to present our newest product to meet your financial needs...
Health Coverage in Retirement Presentation at Citizens’ Health Care Working Group by Gerry Smolka, Senior Policy Advisor AARP Public Policy Institute July.
Copyright © 2013 Finity, Inc. All Rights Reserved ConnectiCare HSA Solution Presentation The health of your business is at the heart of everything.
Addressing the Growing Gap in Retiree Health Coverage Paul W. Dennett American Benefits Council July 26, 2005 Citizens’ Health Care Working Group Houston,
HSA This is how you do it. You can Save $100 – $700 per month, per employee and still have the same or better coverage… Health Insurance Costs Too High?
Health Savings Accounts How our plan works and its benefits for employees Presentation Subtitle/Description Presenter’s Name Date.
Health Savings Accounts (HSAs) HSA Accounts were signed into Law on Dec. 8 th, 2004 as part of the Medicare Rx-Bill.
Understanding Health Savings Accounts
Health Savings Account This presentation and the information included herein are the property of the American Fidelity Health Services Administration (AFHSA)
1 Section 1: Minnesota Health Care Spending and Cost Drivers Minnesota health care spending by source of funds Minnesota health care spending by type of.
What is Short Term Recovery Care Insurance and Why Do I Need It?
Experience, Commitment, Results. Federal Health Care Reform The impact on individuals, employers, and our health insurance coverage… National Worksite.
Be Smart with your Money with Health Savings Accounts A Smart option for saving health care dollars.
High Deductible Health Plan (HDHP) & Health Savings Account (HSA) Peru Community Schools Fall, 2009.
MT200704HR Health Care Savings Accounts (HSAs) Revised April
Consumer-Directed Medical Expense Plans Chapter 13.
MN Dept of Human Services Policy Briefing Four: Private and Public Savings Plans Friday, June 4, 2004 Topics Covered: Basics of personal financial planning:
Considering a Health Savings Account? (HSA). Basic HSA Plan Concept High Deductible health Plan Single 2012 Family 2012 Single 2013 Family 2013 Min. Deductible.
Figure 1. Average Out-of-Pocket Health Care Spending, for All Medicare Beneficiaries Age 65 and Up * Projected costs assume an annual 5.1% inflation rate.
2013 Benefits for MFT Retirees Health Insurance Dental Insurance Vision Insurance Life Insurance Health FSA Long Term Care Questions/Contact Info.
HRA’s, HSA’s, FSA’s… What’s The Difference? Mary Nash, CFCI, HIA, FLMI American Fidelity Assurance Company.
Stratfor Medical Plan Review Plan Year
Health Insurance Coverage in the United States Paul Fronstin, Ph.D. Director, Health Research and Education Program Employee Benefit Research Institute.
Minnesota’s Small Group Market Select Statistics Health Care Access Commission Small Group Insurance Market Work Group September 23, 2010 Stefan Gildemeister.
September 2013 HEALTH SAVINGS ACCOUNTS OUR PLAN AND ITS BENEFITS FOR EMPLOYEES.
The Tax Deductibility of Tax-Qualified Long-Term Care Insurance (LTCI) Premiums Presenter Name Presenter Title For agent & financial professional training.
2014. City of Vancouver – 2014 plans The City continues to offer two additional options for employees to choose from Both Regence and Kaiser offer a Consumer.
Health Savings Accounts Presentation For 2009/2010 Plan Year.
The content provided in this presentation is for informational purposes only. For information regarding specific policy information, including regulations,
ESB What is an HSA? Health Savings Account Retirement Accounts Checking Account Savings Account.
What Wonders Have They Wrought? The Patient Protection and Affordable Care Act.
Spending Accounts (For Plan Year 2013) Health Care & Dependent Care SHPS.
Consumer-Driven Health Plans HSA and HDHP Overview A Health Savings Account (HSA) is a special account owned by an individual where contributions to.
Risk of Needing Care   40% of Americans receiving long-term care are working-age adults. (Where does the Population Live and Who Cares for Them? LTC:
Age and Disabilities Odyssey June 20, 2011 Is The CLASS Act The Answer to Long-Term Care Financing?
Medicare: An Overview September 30, 2014 Society for Financial and Professional Development 7 th Annual Financial Literacy Leadership Conference Christina.
Limited Scope FSA Purpose: A savings option that allows participants to preserve and build up the balance in their HSA while still receiving the pre tax.
Comparison of Major Health Care Reform Proposals BushKerry Aims to Cover All Americans X Tax Credits for Premiums XX Automatic Enrollment/ Individual Mandate.
Health Savings Account - HSA Presentation John Alden Life Insurance Company Welcome to John Alden.
Susan A. Coronel LTC Director America’s Health Insurance Plans What is LTC Insurance and Where is the Market Headed?
Review of Trends in Minnesota Health Insurance Coverage Health Care Transformation Task Force September 17, 2007 Julie Sonier Director, Health Economics.
Understanding H.S.A. Plans A short explanation of Health Savings Accounts and Qualified High Deductible Health Plans.
$MART MONEY WEEK topic Health Savings Accounts A Smart option for saving health care dollars.
ESB-727 AppEnabler ESB ESB-727 What is an HSA? Health Savings Account Retirement Accounts Checking Account Savings Account ESB
HEALTH SAVINGS ACCOUNTS. HSA Overview · A Health Savings Account (HSA) is a special account owned by an individual where contributions to the account.
TAX POLICY CENTER URBAN INSTITUTE & BROOKINGS INSTITUTION TAX & HEALTH INSURANCE CONFERENCE WASHINGTON, DC FEBRUARY 29, 2008.
LONG TERM CARE Financing Long Term Care. THE NEED FOR LONG-TERM CARE SERVICES IN THIS COUNTRY IS EXPECTED TO INCREASE DRAMATICALLY.
1 LTC Planning Options… -Three ways you can fund your LTC plan 1. Use your own personal or family’s savings & investments - Self Insure - Self Insure 2.
DataBrief: Did you know… DataBrief Series ● December 2010 ● No. 8 Group Long-Term Care Insurance Only 1 in 7 U.S. workers have access to private long-term.
Figure 1 K A I S E R C O M M I S S I O N O N Medicaid and the Uninsured Dual Eligibles: The Basics Barbara Lyons, Ph.D. Director, Kaiser Commission on.
Stratfor Medical Plan Review Plan Year
What is an HSA? Brenda Black. What is an HSA Health Savings Account  No use or lose A Health Savings plan is a consumer owned, tax advantage savings.
Health Savings Accounts (HSAs) Everything You Need to Know.
Health Savings Accounts Overview. What is a Health Savings Account? The health savings account, or HSA, is an account that you can contribute to on a.
Open Enrollment. Agenda Health Benefits Overview –Glossary of Terms –2013 Plan Options Health Savings Account Dental Renewal Vision Renewal Open Enrollment.
It’s Time to Rethink your Medical Plans Strategy Plan Planning Ahead for 2010.
11.1 H EALTH I NSURANCE P REMIUMS Protects you against overwhelming medical expenses. Many kinds. Three most popular: Traditional: Offers health care coverage.
Coverage type Percent of population
Percent of Total Health Care Spending
QHDHPs and Health Savings Accounts
Paul Fronstin and Jack VanDerhei
Understanding Your Health Savings Account (HSA)
FUTURE HEALTH CARE LIABILTY AND CITY BENEFITS
Presentation transcript:

Health Insurance Options for Long-Term Care Julie Sonier Assistant Director, Health Economics Program Minnesota Department of Health September 10, 2004

Sources of Supplemental Insurance Coverage for Medicare Beneficiaries, MN and US Source: Minnesota Department of Health, Health Economics Program, 2001 Minnesota Health Access Survey; Centers for Medicare and Medicaid Services, 2000 Medicare Current Beneficiary Survey.

Sources of Supplemental Insurance Coverage for Minnesota Medicare Beneficiaries, Metropolitan Areas and Rural Areas Source: Minnesota Department of Health, Health Economics Program, 2001 Minnesota Health Access Survey

Who Buys Long-Term Care Insurance and HSAs?  Currently, LTC insurance is mostly purchased by higher-income people for asset protection  Although HSAs are still in their infancy, it appears that they are also most attractive to higher-income (and healthier) people  So, as a potential future means of saving Medical Assistance dollars the impact of LTC insurance and HSAs is likely limited – unless the population that buys these products changes

Adding LTC coverage to Medicare supplement insurance  Would likely hurt the MedSupp market without increasing LTC coverage –January 2000 MDH report estimated premiums for LTC insurance purchased at age 65 were 4 times the premium for the most popular Medigap policy  Questions about cost-effectiveness of subsidizing premiums for low-income people  Potential interaction with HSA policy options: HSAs cannot be used to pay for Medigap premiums (but can be used to pay for LTC insurance premiums)

Additional issues related to HSAs as a vehicle for saving for LTC expenses  According to a July 2004 analysis by the Employee Benefits Research Institute, the amount of money a person can potentially accumulate in an HSA is generally far less than he/she will need for health care expenses in retirement  Some examples follow… Source: Paul Fronstin and Dallas Salisbury, “Health Care Expenses in Retirement and the Use of Health Savings Accounts,” Employee Benefit Research Institute Issue Brief No. 271, July 2004

How Much Money Can Be Accumulated in an HSA for Health Care Needs in Retirement? 50% of end-of-year account balance rolled over 90% of end-of-year account balance rolled over 10 years$2,000$8, years$2,000$13,000 Account balance assuming $1,000 annual contribution and 5% rate of return Source: Paul Fronstin and Dallas Salisbury, “Health Care Expenses in Retirement and the Use of Health Savings Accounts,” Employee Benefit Research Institute Issue Brief No. 271, July 2004

50% of end-of-year account balance rolled over 90% of end-of-year account balance rolled over 10 years$6,000$21, years$6,000$33,000 Account balance assuming $2,600 annual contribution and 5% rate of return How Much Money Can Be Accumulated in an HSA for Health Care Needs in Retirement? Source: Paul Fronstin and Dallas Salisbury, “Health Care Expenses in Retirement and the Use of Health Savings Accounts,” Employee Benefit Research Institute Issue Brief No. 271, July 2004

How Much Is Realistic to Expect Can Be Rolled Over in an HSA from Year to Year? IndividualFamily Deductible$1,000$2,000 % of households with expenses less than deductible 58.0%32.6% Source: Linda Blumberg and Leonard E. Burman, “Most Households’ Medical Expenses Exceed HSA Deductibles,” Urban Institute and Brookings Institution Tax Policy Center, August 16, Percent of households with medical spending less than the minimum HSA deductible: