Because things change

• 1 in 13 Canadians over age 65 is affected by dementia

• 7% of Canadians age 65+ live in health care institutions

• Another 28% of Canadians 65+ who don’t live in a health care institution receive care due to a long term health problem

• 1 in 5 Canadians 45 years and over provide informal care to a senior

A growing concern

Alzheimer Society website, 2004Statistics Canada, 2002 General Social Survey

Demographics – Reality!By 2011 the number of Canadians over 65will increase by 40% to nearly 5 million.

The over 80 group will almost double in size in thesame period.Source: April 1998 CARP News; www.50plus.com

By 2031 24% of British Columbians will be overage 65 * ‘A Profile of Seniors in BC’, Ministry of Health

Health Care in BC

• Health Care funding has doubled in the last decade

• $3 billion added in the last 4 years• Total spending $11.6 billion 2005/2006• Health care costs in BC have increased twice as

fast as the economy. • Increased demand from an aging population• Is this sustainable?

Long Term Care – What can Long Term Care – What can cause it?cause it?

Illness or Condition (Arthritis, MS, Stroke, Parkinson’s)There are 50,000 new strokes a year in Canada and 43% of the survivors require in-patient rehabilitation or long term care. 1

Accident or Injury (falls leading to a broken hip, car accidents)Hip fractures result in a disability in 50% of those who survive. 2

Deteriorated Mental Abilities (Alzheimer’s, Senile Dementia)Alzheimer's Disease and related dementias affect 1 in 13 Canadians over age 65. 50% of Canadians with dementia live in nursing homes, homes for the aged or retirement homes. 5

The Aging Process

1- Heart and Stroke Foundation of Canada2- Osteoporosis Society of Canada3- Health Insurance Association of America Guide to Long Term Care, 19994-Alzheimer Society of Canada.5-Statistics Canada

A life altering event can happen at any age

30 is the is the average age of average age of diagnosis for diagnosis for

Multiple Multiple Sclerosis.Sclerosis.

The average age of The average age of major trauma major trauma

patients ispatients is 43.

97% of spinal cord 97% of spinal cord injuries occur before age injuries occur before age

50.

MS Society of Canada website, 2005Canadian Paraplegic Association, 2000Canadian Institute for Health Information, 2003

If your clients need care

• What is the quality of care they want to receive?

• Where would they like to receive the care?

• How will their families cope?

• How will they pay for the care they want to receive?

How much does home care cost?

• Nursing care in the home ranges from $40 to $60/hr• Personal care in the home can cost between $15 and $30/hr• Homemaking can cost from $12 to $25/hr

– Weekly Costs = $300.00 - $600.00– Monthly Costs = $1,200.00 - $2,400.00– Yearly Costs = $24,000 - $36,000.00

How much is Facility Care?

Government• Public Facilities: In BC cost is $4500. You pay according

to your family income – government subsidizes the remainder

• Current rates – based on a per diem starting at $29.10/day ++ or ($873 - $2200 /month)

Income Testing / the higher your income the more you pay

Private• Assisted Living: $1500 - $2500+/month• Private Facilities: $3000 - $5000+/month

(Annual Costs = $30,000 - $70,000)

Funding options

Savings and

assets

Insurance

How long will savings last?

$0

$100,000

$200,000

$300,000

$400,000

0 2 4 6 8 10

Year

No care needs

Care needs

Assumptions:• 6% rate of return• Initial $2000 monthly cost of care indexed to 2% inflation

• No tax on withdrawals

Costs for caregivers

More than 1/3 incur extra expenses

One in 10 reduce their hours of work

One in 10 report health problems

Statistics Canada, 2002 General Social Survey

WHERE WILL THE MONEY COME FROM?

Government can pay for all Health Care costs. For everyone? Forever? Or will you be partially or wholly responsible?

Are you confident that our

WHO WILL PAY YOUR CLIENTS OR THE GOVERNMENT?

“British Columbians should be encouraged to

purchase LTC insurance to provide for their

future health care needs”.

Patients First Report: Renewal and Reform of British Columbia’s Health Care System.

Select Standing Committee Report on Health (2001)

What is long term care insurance?

Helps cover the costs of long term care services

Benefits are payable when you are physically dependent:• Require assistance from another person

to perform 2 or more of the 6 activities of daily living (bathing, dressing, feeding, toileting, transferring, continence), or

• Require continual supervision because of deteriorated mental ability

Not all policies are the same

When your clients need care:

1. Reimbursement plans pay you back for eligible expenses you receive on a given day, up to a pre-determined daily maximum

2. Indemnity plans pay a pre-determined daily benefit if you receive an eligible expense on that day

3. Income plans provide a pre-determined weekly benefit, and you don’t have to prove you received any eligible expenses

Can a Long Term Care Situation

One of your clients?

Happen to

If an accident or illnesschanges your clients life…

If your clients or their loved ones need help

with everyday activities . . .

Do they have a plan?Do they have a plan?

We all would like to think that we We all would like to think that we are invincible…are invincible…

He Only Fell Four He Only Fell Four Feet!Feet!

What questions do you have?