Thursday, May 21, 2015
Amendments to the state's Long Term Care Insurance Partnership program will go into effect on July 1, 2015.
More Minnesotans may be able to plan for future long term care needs as the result of Gov. Mark Dayton signing S.F. 997 on May 19th. This bill amends the current requirements for the state's long term care insurance (LTCI) partnership program and reduces the minimum inflation protection needed for qualification from no less than three percent per year, to no less than one percent per year. The bill was authored by Rep. Joe Schomacker (R-Luverne) and Sen. Vicki Jensen (DFL-Owatonna), and passed both chambers unanimously. This amendment will take effect July 1, 2015.
Deb Newman, CEO of Richfield-based Newman Long Term Care originally proposed these changes through her agency's involvement in the state's Own Your Future Advisory Panel. Fifteen other states have already allowed for similar lower inflation levels. Her proposal gained the support of both the Advisory Panel and then the insurance industry. Legislation was drafted, and Newman testified before the House Committee on Aging and Long-Term Care Policy in February, in part to discuss why this change made sense.
"This is a win for both the state and consumers," says Newman. "The dollar for dollar asset protection offered by the partnership has always been of great interest to consumers, but inflation riders are often the most costly part of a long term care insurance policy. In fact, premiums for 1% inflation may be one-third less expensive than a policy with 3% compounding. With this change, the partnership program has now opened up to a much larger group of Minnesotans."
"Care has shifted from more costly nursing facilities to care in our homes and other more affordable settings," says Newman.
Home care now accounts for 51% of long term care claims. (American Association for Long-Term Care Insurance, 2014 LTCi Sourcebook). Minnesota's average costs for home health aide services have increased by just under 1% annually over the past 5 years (Genworth 2015 Cost of Care Survey, Genworth Financial).
"If you've looked into coverage in the past and didn't make a purchase, it's time to look again."
To learn more about Minnesota's LTCI partnership program, and to receive a complimentary guide on the program, visit www.NewmanLongTermCare.com/MN
About Deb Newman & Newman Long Term Care
Founded in 1990, Newman Long Term Care has focused exclusively on long-term care insurance for 25 years. Based in Richfield, Minnesota, the firm is a national leader in the industry and currently sells long-term care insurance in all 50 states. In 2009, Deb Newman was acknowledged by the Minneapolis/St. Paul Business Journal as one of the top 25 Women in Business. In 2007, Deb was recognized nationally as one of the top ten on the Power List of Who's Who in Long Term Care Insurance. She was nominated by Senator Mitch McConnell for the Federal Long Term Care Commission, a group tasked with devising a comprehensive long-term care planning and services system.
Deb Newman has held leadership positions in many insurance industry groups, including:
- Past Chair for the Board of Directors, Life & Health Insurance Foundation for Education (LIFE);
- Past President, National Association of Insurance and Financial Advisors (NAIFA) – Minnesota;
- Past National President, Association of Health Insurance Advisors (AHIA)
For more information about Deb Newman and Newman Long Term Care, visit www.NewmanLongTermCare.com