1. What are the chances of the average American citizen entering a nursing home?
A. A study by the U.S. Department of Health and Human Services says that people who reach age 65 will likely have a 40 percent chance of entering a nursing home.
2. Are there any statistics on the approximate length of time spent in a nursing facility?
A. About 10 percent of the people who enter a nursing home will stay there five years or more. And all ages need long-term care.
3. Should I be concerned with long-term care for my young children?
A. Three percent of those requiring long-term care are less than 18 years of age, forty percent are 18yrs-64yrs and fifty-seven percent are 65 yrs and older.
4. What are the benefits of long-term care insurance?
A. Long-term care insurance is one of the most significant products that people can purchase to protect their assets, to receive the kind of care after a disabling illness or injury, or for the latter days of life. It is critical to plan ahead.
5. What is a Nursing Home?
A. A nursing home is an entity that provides skilled nursing care and rehabilitation services to people with illnesses, injuries or functional disabilities. Most facilities serve the elderly. However, some facilities provide services to younger individuals with special needs such as the developmentally disabled, mentally ill, and those requiring drug and alcohol rehabilitation. Nursing homes are generally stand-alone facilities, but some are operated within a hospital or retirement community.
6. Can you describe these rehabilitation services nursing homes provide?
A. Many homes now provide much of the nursing care that was previously provided in a hospital setting. As a result, most nursing homes now focus their attention on rehabilitation services such as: Physical therapy, Occupational therapy, Speech therapy and Respiratory therapy.
7. What is a skilled nursing facility (SNF)?
A. A skilled nursing facility is an entity that provides skilled nursing care
8. What are the primary services nursing homes provide?
A. Many homes now provide much of the nursing care that was previously provided in a hospital setting. Most nursing homes now focus their attention on rehabilitation:
• Physical therapy
• Occupational therapy
• Speech therapy
• Respiratory therapy
9. What concerns should there be when placing a spouse, parent or relative in a long-term facility?
A. Primary advice to anyone who has to put a spouse, parent or a relative in a long-term care facility is to visit regularly. Attend the care plan meetings, visit and stay involved. Relatives who are just dropped off and ignored easily become depressed or ill.
10. Is there data which supports the financial desirability of long-term care insurance?
A. The National Center for Health Statistics compiled data from the 1999 National Nursing Home Survey to evaluate the question. Consideration was given to the financial desirability of buying insurance to cover nursing home care (data for nursing homes were more readily available) for up to $4,000 a month for a maximum of up to five years. If the net present value (NPV) of buying a policy were positive, conclusion would support an individual’s purchase of long-term care insurance.
11. Can you explain the tests and give any statistical data?
A. Data were based on responses to questions for a sample of 8,215 current nursing home residents and for 6,913 individuals (6,475 usable responses) discharged. Data on current residents were used to estimate the timing of entry into a nursing home, while data on discharges were used to estimate average length of stay. The tests, using various rates of return, compared the net present value (NPV) of expected (pretax) cash outflows when one buys long-term care insurance at quoted rates.
12. What factors determined the desirability to self-insure or to purchase long-term care insurance?
A. When the net present value (NPV) of expected outflows exceeds that of the inflows, it appears desirable to self-insure.
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