Cna Long Term Care Premium Increases – The need for direct care workers in long-term care settings has grown over the past 10 years, and with staff expected to move to other occupations or leave the workforce altogether, coupled with a growing elderly population, these Job opportunities will almost double in the near future. decade.
From 2019 to 2029, there will be approximately 7.4 million direct care openings, according to a report published by PHI National, a New York-based policy research and advocacy organization.
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The expectations mirror U.S. demographic projections, PHI said. Adults aged 65 and older will increase from 49.2 million to 94.7 million between 2016 and 2060.
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The long-term care workforce added approximately 1.5 million new jobs from 2010 to 2020, growing from 3.1 million to 4.6 million.
Demand will fall heavily on home care and residential care workers, the report indicates, explaining the public’s preference for home or community care services (HCBS) rather than a nursing home.
“Almost all of the job growth we are seeing in this field will be in home care, the total job growth for the direct care workforce is actually slightly offset by the expected decline in demand for nursing assistants,” he said Stephen McCall, data expert. and policy analyst for PHI.
In his study, PHI divided direct caregivers into three categories: nursing assistants, residential caregivers and home health workers. Nursing assistants were further classified into the following categories: certified nursing assistants (CNAs), certified nursing assistants, nursing assistants, nursing assistants, nursing assistants, and nursing assistants.
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PHI pointed to the Biden administration’s $400 billion in funding for HCBS to explain the decline in demand for nursing assistants, alongside public preferences.
“With the growing population of older adults, their care preferences are different today than in the past. They really prefer to live at home and receive services at home,” McCall explained. “In reality it has probably always been this way, the difference is that policies and programs have achieved that preference to make home and community services more available to people.”
Regardless of the move to HCBS, the nursing assistant workforce is projected to have 561,800 total jobs between 2019 and 2029, the report says, regardless of the move to HCBS. Of this figure, PHI took into account 272,000 workers moving to other occupations and 299,900 openings caused by workers leaving the workforce altogether.
“This is not to say that we should neglect the nursing assistant workforce, as demand for these workers is declining,” McCall noted. “Yes, there will be amazing growth in the home care workforce, but we absolutely need to meet the needs of nursing assistants as well and make sure those are good quality jobs too.”
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Direct care will add “more new jobs than any other single occupation,” the report says. Despite the demand, the average hourly wage in 2020 was $13.56, according to the data.
“We know that salaries for nursing assistants have remained stagnant, and reports show that the average hourly wage for these professionals has only increased about $1 in 10 years,” said Lori Porter, co-founder and CEO of the National Association of Health. Nursing assistants (CNAs). “It reaffirms a lot of what we previously knew or suspected.”
The average annual earnings for direct care workers was just $20,200; 44% of this workforce lives in low-income households and 45% rely on public assistance such as Medicaid, nutrition or cash assistance.
“These trends reflect and perpetuate the racial and gender inequities faced by direct care providers, who are largely women and people of color,” the report states.
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About 41 percent of nursing assistants live in low-income households, the report says, and 12 percent live in households below the federal poverty line. About 34% of nursing assistants use public assistance.
“It’s time for CNAs to earn a living wage, receive adequate benefits, and be able to do the work they are trained to do and love without having to hold down two or more jobs and constantly worry about getting sick or injured,” Porter told the SNN. “This last part is especially concerning, as the report finds that 1,700 employees, including many CNAs, have died from COVID-19. At the same time, these people are three times more likely to suffer workplace injuries than the average U.S. worker. Yet 13% of CNAs do not have health insurance.”
A Buffalo transplant and Los Angeles resident, Amy has worked as a business journalist for more than two years and has been in the profession for more than seven. She is an avid science fiction reader (sometimes poolside), nature lover, and beginner to roller derby.
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Unfortunately, it’s not just current premium increases that are confronting LTC policyholders with these difficult decisions. In the letters, some of these insurance companies threaten that if they are unable to increase premiums by 250% within the next 6 years, the insurance company may not have enough resources to pay the promised benefit. What is the point of an insurance policy if there is no insurance company that pays the benefit? I won’t mention any of the insurance companies by name, but here are some of the word-for-word statements in those letters:
“ARE. Best downgraded its (INSURANCE COMPANY NAME) Financial Strength Rating to C++ in September 2019, indicating that A.M. Best believes (INSURANCE COMPANY NAME) has marginal ability to meet its insurance obligations in course.”
“Please note that as of 06/06/21 over the next 3-6 years we are planning to seek additional rate increases of up to 250% for lifetime benefits”
In most cases, these long-term care insurance premiums were not cheap to begin with. Before these premium increases, it was not uncommon for a solid policy in New York to cost between $2,500 and $4,000 per year per person. LTC policies tend to carry a higher cost because they have a higher probability of reimbursement than other types of insurance policies. For example, with life insurance, they expect you to pay the premiums, live a long and happy life, and the insurance policy never pays out. Compare this to the risk of a long-term event, where in 2021 HealthView Services produced a study that stated:
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“The average healthy 65-year-old couple living within their expected actuarial longevity has a 75% chance that one partner will require a significant level of long-term care. There is a 25% chance that both partners will need long-term care” (source: Think Advisor)
Add to that the fact that long-term care expenses are very high and insurance companies have to charge higher premiums to balance the dollars coming in versus the dollars going out.
With these premium increases now in play, some retired couples are facing a situation where they previously might have paid $5,000 a year for both policies and find that their premiums are increasing by 70%, increasing the cost annual at $8.,500 per year.
So what happens when a retired couple on a fixed income receives one of these letters and realizes they can’t afford the premium increase? They essentially have two options:
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Let’s start by looking at the edit option. Many insurance companies, in exchange for a lower premium increase, may allow you to reduce the benefits offered by the policy to make it more affordable. You may have options like
These are just some of the adjustments that could be made, but remember, you’re taking what you have now and watering it down to make it more affordable. Be careful, at some point you have to ask yourself:
“If I reduce the benefits of this policy, will it provide me with enough coverage to meet my financial needs should I have a long-term event?”
If the answer is “No,” you may need to more carefully consider canceling your policy. But what happens if you cancel your policy and are now exposed to the financial risk of a long-term care event? Answer: You will need to identify another financial strategy to manage that risk. Two of the most common ones we have implemented for customers are
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The way this solution works is that you are essentially putting money aside for yourself, acting as your own insurance company—if a long-term care event were to occur later in life, you will have money set aside to pay for those expenses. If you previously paid an insurance company $4,000 a year for your LTC policy and then canceled the policy, you would set up a separate investment account
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