Senior Market Advisor 2008
August 20-22
Royal Pacific Resort
Orlando, Florida
Call 888-880-8218
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FPA Boston 2008
October 4-7
Boston Convention and Exhibition Center
Boston, MA
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CLTC Spotlight :

• Senior Marketing Advisor
• Lynn Rockwell, CLTC

LTC Legislative Update:

• The Long-Term Care Affordability and Security Act of 2007

Recommended Reading:

• The Reverse Mortgage Business is Booming
• The Important Role of Geriatric Care Managers
• The ACLI Expresses Support for LTC Affordability and Security Act
• WA State: Insurers Who Act in Bad Faith May be Sued for Triple Damages
• NIA Gives Brown University $10M to Study Long-Term Care

State News

• Nebraska

Carrier News:

• Conseco to Implement Systems and Operational Solution From Long Term Care Group
• John Hancock Now Selling Partnership Policies in Florida
• Northwestern LTC Policyholders Get Dividend for 2nd Consecutive Year
• Penn Treaty Launches Wellness Program to Support Healthy, Independent Living

Update from the Corporation for Long-Term Care Certification, Inc.

• Catharine Dove, CLTC Joins Board of Standards
• CLTC Webinar Information now up on our Website

Senior Marketing Advisor

Senior Market Advisor has named CLTC Founder and President Harley Gordon to its Power List of Who's Who in LTCi 2007. The list includes the 10 people in our industry who are making the greatest contributions to LTCi.

The publication cites Harley as changing the way LTCi is sold by changing the emphasis from risk to consequences. He is also singled out for redefining LTCi as protection for the caretakers, not the insured. You can read The Power List by clicking here.

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Lynn Rockwell, CLTC

Lynn Rockwell, CLTC, President of Rockwell Financial, LLC, had an article published in the online Women's Yellow Pages of Philadelphia entitled "Long-Term Care: The Insurance You'll Most Likely Need in Retirement.” Some notable quotes include: "Money doesn't pay for long-term care insurance, health does.” and "LTCi can help preserve the retirement dreams you worked your whole life to accomplish and the future of those you love the most.” Click here to read the article in its entirety.

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The Long-Term Care Affordability and Security Act of 2007

By Diane Boyle, HIA
Diane Boyle's updates appear regularly in this newsletter. She is a respected Washington lobbyist and is a principal of DBK Consulting and Executive Vice President of AHIA.

A bipartisan group of senators introduced The Long-Term Care Affordability and Security Act of 2007 (S. 2337) on November 13 that would allow workers to pay for qualified long-term health care insurance premiums using pre-tax dollars.

The Long-Term Care Affordability and Security Act of 2007 would allow employers to offer qualified long-term insurance under cafeteria plans and flexible spending accounts. It would amend the current law, which prohibits employees from paying for these costs with pre-tax dollars.

The legislation was introduced by Senate Finance Committee ranking member Charles Grassley (R-IA), along with committee members Senators. Blanche Lincoln (D-AR), Olympia Snowe (R-ME), Debbie Stabenow (D-MI), and Gordon Smith (R-OR).

The legislation also updates consumer protections developed by the National Association of Insurance Commissioners and includes new protections to help ensure the quality of long-term care insurance policies that receive favorable tax treatment. Similar legislation (H.R. 3363) introduced by Representative Earl Pomeroy (D-ND) on August 3, 2007 is pending in the House, although as yet there is no date for its consideration.

The Long-Term Care Affordability and Security Act of 2007 and eight other Congressional initiatives aimed at creating incentives for consumers to begin planning for long-term care needs face an uncertain future in this Congress. Under current Pay Go rules, the cost of providing these incentives would need to be "offset” – with new taxes or cuts in spending elsewhere.

Lawmakers are combing the tax code searching for tax incentives that may no longer be compelling when compared with other tax policy options. The introduction of enhanced tax incentives for long-term care insurance is a clear indication that Congress recognizes the value of current law tax incentives that apply to LTCi. While expanded tax incentives are unlikely to be enacted, the risk of having current tax advantages taken away to "pay for” other proposals is diminished.

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The Reverse Mortgage Business is Booming

The Reverse Mortgage Business Is Booming

The Wall Street Journal published a November 13 article on reverse mortgages that discusses the many options that exist for older homeowners who want to use their home equity to finance must-have's, including long-term care insurance. Learn what companies are players, what questions consumers MUST ask, and what's ahead that should impact both costs and availability quite favorably. Read "Reverse Mortgages: The Choices Expand” here.

(Free to WSJ subscribers only)

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The Important Role of Geriatric Care Managers

What does a geriatric care manager do? This article on Nurse.com, which focuses on GCMs in the state of Illinois, provides a nice overview of their services and value-added and is relevant for families who reside in any state. The article states that LTCi rarely covers their services, but suggests it's often a corporate benefit employees are unaware of. Regardless, it's made clear that a GCM saves patients and their families "money, time and emotional toil,” and is a good resource when budgets are tight and when relatives live far away. Read "Illinois ' Geriatric Care Managers Help Families Care for Elderly Relatives” here.

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The ACLI Expresses Support for LTC Affordability and Security Act

The American Council of Life Insurers has endorsed the Long-Term Care Affordability and Security Act of 2007. (For details on the act, see the Legislative Update section above.) In a recent press release, the ACLI urges Congress to pass the legislation because it makes sense for American's security and our public policy. As supporting reasons, ACLI cites how popular cafeteria plans and flexible spending accounts are among American workers, and stresses the potential savings to Medicaid. One statistic is used that may surprise you: If three-fourths of all Americans between the ages of 40 and 64 bought and maintained long-term care insurance policies, the annual savings to Medicaid would be approximately $36.6 billion.

Visit the ACLI website to view the release or, if you subscribe to InsuranceNewsNet, click here.

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WA State: Insurers Who Act in Bad Faith May be Sued for Triple Damages

In Washington State, residents will be allowed to sue for and collect trip damages from insurers who act in "bad faith” and knowingly deny their claims. Referendum-67, as its known, applies to claims on nonmedical policies such as long-term care, auto, home, and business insurance. Insurers spent over $11 million to fight the measure, warning consumers that passage would result in higher premiums and frivolous lawsuits. Trial lawyers spent $3 million in a campaign to support the measure and won, with 57% of the popular vote. Read the Seattle Times report from November 7. Subscribers to InsuranceNewsNet may wish to read the insurance industry's viewpoint in an article posted the day following the election.

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NA Gives Brown University $10M to Study Long-Term Care

The National Institute of Aging has awarded Brown a large grant to develop the nation's most comprehensive database to date on US long-term healthcare. The university will survey 2600 nursing homes and look at health care policies in all 50 states to investigate the relationship between state policies, local market forces and the quality of long term care. The Providence Business Journal reports that the resulting data will be used to shape public policy.

Read more here.

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In Nebraska, it's The Good Life, Longer

MetLife Launches new Life Stage LTCi Product.

That's the smart theme and tag line for the $45,000 ad campaign promoting the state of Nebraska 's Long-Term Care Savings Plan. The plan claims to be the first and only one to offer tax incentives to save and pay for future LTC expenses, including LTC premiums. The LTCSP allows deposits of as much as $165,000 per person (indexed for inflation) into a qualified long-term care savings account, where money grows tax-free so long as it is used for long-term care expenses or insurance premiums. Further, there is an annual income tax deduction for deposits of up to $1,000 for an individual or $2,000 on a joint return. Individuals can set up their plans with local financial institutions. Currently, five banks have signed up to offer accounts, and ten more have made inquiries. State treasurer Shan Osborn administers the program, and plans to ask the state's lawmakers to increase tax deductions next year. He believes the program will be adopted by other states and has national promise. You can visit the campaign's website at www.thegoodlifelonger.com and get more facts in the Omaha World-Herald. and Southwest Nebraska News.

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Conseco to Implement Systems and Operational Solution From Long Term Care Group

Conseco, Inc. announced it has agreed to implement a systems and operational solution provided by Long Term Care Group, Inc. (LTCG) for certain back-office functions of the long term care business in its Other Business in Run-off segment.

Read more here.

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John Hancock Now Selling Partnership Policies in Florida

John Hancock Life Insurance Company (John Hancock) announces it is now selling Partnership-qualified long term care insurance policies in Florida .

Read more here.

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Northwestern LTC Policyholders Get Dividends for 2nd Consecutive Year

The Board of Directors of the Northwestern Long Term Care Insurance Company approved a continuation of its current long-term care dividend scale for 2008. This will result in an estimated dividend payout of $6.1 million to participating long-term care policyowners, representing a $2.2 million increase over the 2007 estimated payout. Northwestern Long Term Care is a subsidiary of The Northwestern Mutual Life Insurance Company.

Read more here.

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Penn Treaty Launches Wellness Program to Support Healthy, Independent Living

Penn Treaty has initiated the Wellness Privileges Program, offering wellness services designed to help policyholders live more healthy, independent lives.

Highlighting the wellness services is the Brain Fitness Program(TM), a computer-based mental exercise program that guides users through a series of exercises designed to help improve memory, strengthen communication, and sharpen thinking skills-with the ultimate goal of delaying the onset of dementia and Alzheimer's disease.

Hailed as one of the "medical breakthroughs of the year" by CNBC, the program was developed by Posit Science (www.positscience.com) and is the first of its kind in the long-term care insurance industry.

Read more here.

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Catharine Dove, CLTC Joins Board of Standards

The CLTC Board of Standards, Inc. is pleased to announce that Catharine R. Dove, whom many of you know as a former instructor and contributor to Ask the Experts, has been appointed to the CLTC Board of Standards.

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CLTC Webinar Information now up on our Website

Have you seen the new Webinar tab on the graduate section of the CLTC website? The newest graduate benefit gives you the ability to view and register for upcoming presentations in the Webinar Calendar, or view those you may have missed or want to see again in the Webinars Archives, by going to: www.ltc-cltc.com

Right now, you can get information on the Dec. 20 presentation by Harley Gordon on Tax Benefits of LTCi and see replays of our fall webinars.

Click here http://www.ltc-cltc.com/graduates/webinar/ or just click the "Webinar” tab on our main home page or graduate home page.

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