As the state’s population ages, caring for the elderly could become a huge drain on state finances, since the federal Medicare program doesn’t pay for the services frail elderly need. That was the major theme at the 4th Annual Long-Term Financing Solutions Forum held at the Humphrey School of Public Affairs on January 12, 2012. Much of the information presented was not new to the attendees: caregiving is harder than expected; Medicare covers very little long-term care; it is difficult to put together all of the services needed when they are needed; the data is scary; and the advanced planning conversations that need to take place seldom are done.

What was new was the presentation from Department of Human Services Commissioner Lucinda Jesson. Jesson announced the administration’s plans to launch a new effort to encourage people to finance their own care.

"If we don't figure this out pretty soon, in 20 years Minnesota won't have money for schools, highways, even for other social services," Jesson warned as she outlined a campaign that soon will start seeking answers.

There are three components of the plan that will roll out in 2012, involving several state agencies and the state’s Lieutenant Governor, Yvonne Pretter Solon.

1. A public information campaign called Own Your Own Future will urge individuals to plan for their long-term care needs. It will start with two pilot education projects that could go statewide later this year, perhaps with help from employers.

2. Identify and develop affordable insurance/savings products for middle income Minnesotans. How about insurance that covers long-term care but doubles as investment savings? Or tax inducements to squirrel away money in specialized savings accounts? Or a program that offers prizes to those who save, or a state-sponsored insurance plan?

3. Reform the Medical Assistance (Medicaid) program for long-term care — change the program to better support the private financing options instead of creating a spend-down “cliff.”
The Association will hear more details about this new vision for Long-Term Care Financing Reform at their January Board/Leadership retreat later this month.

Patti Cullen, CAE
952.851.2487
pcullen@careproviders.org