What Do Consumers Want in a Long Term Care

Transcript:What Do Consumers Want in a Long Term Care:
What Do Consumers Want in a Long Term Care Financing Product? Minnesota Forum on Long-Term Care Financing 7 January 2020 Do consumers want an insurance product covering long-term care costs? Do they know: If and why they need one? What these are? What value they provide? Whether/which one is right for them? Awareness still a challenge More than two-thirds of adults 18+ say it is unlikely they will need any type of LTC Only 12% correctly identify that LTC costs are mostly paid directly by those that need care Source: Directive Analytics Omnibus Study conducted for ET Consulting, Summer 2019. Over two-thirds deny the need Source: Directive Analytics Omnibus Study conducted for ET Consulting, Summer 2019. Q33 “Please indicate how likely it is that you may ever need care in a nursing home, as assisted living facility or care in your home for more than six months at some point in the future?” Not gonna’ happen Only 12% know “who pays” for LTC Don’t Know Health insurance/HMO Own financial resources Medicaid Other Reverse Mortgage Family help MA/Medicare Supplement Source: Directive Analytics Omnibus Study conducted for ET Consulting, Summer 2019. Q33 “Please indicate how likely it is that you may ever need care in a nursing home, as assisted living facility or care in your home for more than six months at some point in the future?” Older adults must be more aware? Good news and bad news Good: Older respondents (55+) less likely to say “don’t know” who pays for LTC Bad: They are much more likely to say that Medicare or Medicare supplemental coverage pays for LTC Age does make a difference in both the perception of risk and “who pays” Under age 35: Less likely to acknowledge need for LTC than other age groups Age 55+: More likely to acknowledge possibly needing home care or care in a nursing home However, even among 55+, between 56% to 75% say they are not likely to need LTC Source: Directive Analytics Omnibus Study conducted for ET Consulting, Summer 2019. LTC Finance Products Looking at them through the Consumer’s Lens LTC finance products Traditional LTC insurance Combination/Hybrid products Life/LTC Annuity LifeStage Short term care CCRC Learning what consumers want Over 30 years of public domain research Different types of studies Different study objectives Different study populations What can we learn: How consumers act, not just how they think What this tells