Penn Treaty American Insurance Company has failed, and now Pennsylvania insurance regulators are contemplating what to do with the defunct company. The Pennsylvania department was forced to take over a large block of Conseco polices only a few weeks ago, and now they will assume responsibility for all existing policies that were sold by Penn Treaty American and its subsidiary, American Network Insurance Company. Penn Treaty American fell victim to the same situation that has plagued so many other long term care insurers—in the quest…
Senior Care Blog
AARP: Medicaid and Long Term Care are Legislative Priorities in 2009
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“This is not the time for business as usual,” AARP CEO Bill Novelli said at a press briefing. “It is time to demonstrate bold leadership, to take our agenda to the people and our nation’s leaders, to demand change and to work hard to bring about that change.” And with that, the AARP, representing more than 40 million Americans over the age of fifty, put the incoming Obama administration and the next Congress on notice that they would be playing a very active role in…
AARP, Elder Care, MedicaidUS Life Expectancy Continues to Rise, Complicating Senior Issues
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The oldest man in the United States died this past weekend at the age of 112 years and 204 days. George Francis was residing at a nursing home in Sacramento, CA at the time and he is survived by 18 grandchildren, 33 great-grandchildren and 16 great-great grandchildren. He lived through three centuries as he was born in 1896. Mr. Francis was not the oldest person in the world, nor was he the oldest person in the United States. Those distinctions belong to a 115 year…
Senior IssuesEconomy Hitting State budgets Hard, Medicaid Cuts Expected in 2009
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As states all across this country prepare budgets for 2009, one thing is clear: revenues are down, but the need to spend is never down. Every state is facing a fiscal crisis unlike anything in the past. California, Nevada, New York, Rhode Island, South Carolina and Utah are all looking at freezing or even reducing the numbers of people on Medicaid in their states. Some states will start making it even more difficult to qualify and then remain Medicaid eligible. Requirements to reapply twice a…
Economic Crisis, Senior Budget Cuts$2 Trillion in U.S. Home Values is Lost in 2008
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A report released on December 15th shows that $2 trillion in the value of American homes evaporated in 2008. A report released by the National Association of Home Builders in June of this year showed $500 billion lost in home values at that time. But now, 11.7 million home owners are carrying mortgages considered “underwater” because they owe more on their homes than they are worth. The combination of negative equity and a continuing surge of foreclosures flooding the market have caused the loss of…
Economic Crisis, Senior IssuesCost of Senior Housing Hit Hard by Wall Street Turmoil
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United Press International reports today that the ability of seniors to afford the costs of senior housing and long term care are being hit very hard by turmoil on Wall Street Massive Wall Street losses since its highs less than two years ago have cut many retirement accounts in half, reports University of Illinois Law Professor Richard L. Kaplan. The average costs of staying in an assisted living or skilled nursing property can be quite high; and with the losses on Wall Street combined with…
Economic Crisis, Senior LivingLong Term Care Insurance Policies in Financial Danger Moved to State Funded and Managed “Risk Pool”
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A large number of long term care insurance policies sold by Conseco Insurance company a number of years ago needed to be moved to a state managed risk pool last month to ensure they would remain solvent. The Pennsylvania Insurance Department took over 150,000 policies– taking an action described as a “shocker”. These were older policies that had been under priced when sold years ago and had been a drag on the insurance company’s revenues ever since. According to the Insurance Commissioner of Pennsylvania, policy…
Senior Life Insurance, State Health CareMedicaid to Start Charging Premiums and Increasing Co-Pays
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In response to the economic slump, growth of the Baby Boom population and pressure on state budgets, the federal government will allow states to begin charging premiums and increasing co-pays for those on Medicaid. This is another warning sign to seniors and their families that they need to be preparing to take on more and more of the financial burden to cover the costs of senior housing and long term care. As the increasing population of Baby Boomers and seniors hits in concert with a…
Cost of Care, MedicaidRecord Housing Slump as Baby Boomers Entering Retirement
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That’s today’s headline on CNN.com, just days after the New York Times wrote an in depth feature about the housing slump and its impact on seniors trying to raise money for a move into assisted living. The S&P Case Schiller Home Price Index recorded a record drop in home prices in the third quarter of this year (during the summer months before the economic crisis really kicked in). Home prices have shrunk back to 2004 levels wiping out home equity gains from almost the last…
Economic CrisisImpact of the Home Value Slump on Assisted Living Industry
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The New York Times correctly identified a critical problem that will only grow for both seniors and the Assisted Living industry: the virtual collapse of the U.S. housing market. The drop in home values and the difficulty sellers are having finding buyers is severely hampering the ability of seniors and their families trying to raise enough money to be able to move into assisted living homes. In June, 2008 the National Association of Home Builders released a report showing almost $500 billion in home equity…
Assisted Living, Economic CrisisRecent Reports of Concern for Seniors
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In the last month two reports came out that should be of concern to seniors and their families. Just this past week the Federal Reserve released their economic projections through 2009 anticipating Gross Domestic Product (GDP) for the U.S. may contract by as much as a full percentage point. We are watching what the Secretary of the Treasury recently described as a “once in a Century” tumult in the U.S. economy. The impact on unemployment could be alarming with the unemployment rate of 4.5% last…
Long Term Care Cost, Senior IssuesSeniors Face Retirement Funding Crisis
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The impact of this economy on seniors and their families has been particularly difficult. Housing values are down significantly and the time it takes to sell a home is now measured in months instead of weeks. Income from retirement accounts and investments have been reduced in many cases by half or more due to the volatile stock market. For those now facing decisions about retirement and possible moves into senior housing, assisted living and long term care the impact of the economic crisis has been…
Cost of Care, Retirement Funding