We are shaping a solution for our country’s long-term care financing crisis. It is a solution that is affordable and sustainable for the future.
Our Long-Term Care Solution is a financially sound national insurance plan founded on three core principles:
- Consumer choice
- Financial responsibility – both personal responsibility and good stewardship of provider and public resources
- Equity of benefits
The goal is simple: to get as close to universal long-term care coverage as possible. With cash as one (if not the only) benefit, the poor and middle class will have greater choices in how and where to receive the care and services they need. Benefits should be tied simply to a determination of the individuals’ functional need. These elements establish a consumer-centric model of care for all.
How do we know this solution could work? Because similar programs are already working here and abroad. Federal demonstration programs called “Cash and Counseling” are functioning in several states, allowing nursing home-certified Medicaid recipients to receive cash to hire personal care workers (including family or friends) or to purchase other needs (e.g., home modifications). While AAHSA’s approach differs in many ways, these programs offer valuable lessons in designing a national system for America.
AAHSA doesn’t believe a universal insurance program will cover all long-term care expenses. Even if nearly all adults are enrolled, there will still be costs the plan does not cover. Some may wish to purchase extra insurance to cover full costs and some may pay the difference through private funds. People with very low incomes will continue to need financial assistance.
But a cash benefit can make a substantial difference in meeting unmet needs and easing the burden on families. Our economic modeling shows that this solution is both affordable and significant. We tested a number of options. One example pays $75 a day for as long as needed, with a five year vesting period. Another example pays $75 a day but for five years. The cost? Between $0.73 and $2.87 a day. That means for about the price of a cup of coffee a day, paid in over time, we can create a program that will provide basic long-term care coverage for all. And that is a smart investment.
Long-Term Care Financing: America’s ViewsAAHSA, with the help of the Mellman Group and American Viewpoint, conducted a poll of 1,000 likely voters in August to determine where long-term care ranks as a concern and what messages resonate with consumers about AAHSA’s Long-Term Care Solution. This report briefly summarizes the findings.
AAHSA's Long-Term Care Solution
This document briefly summarizes the economic modeling behind AAHSA's Long-term Care Solution.
Modeling a New Long-Term Care Financing Plan
This report from The Moran Company provides an in-depth economic analysis of AAHSA's initiative to transform the way our country pays for long-term care.
