Copyright © 2013 University of Minnesota. All Rights Reserved Long-Term Health Care Planning: Preserving Your Farm or Small Business Gary A. Hachfeld Extension.

Copyright © 2013 University of Minnesota. All Rights Reserved

Long-Term Health Care Planning: Preserving Your Farm or Small

Business

Gary A. Hachfeld

Extension Educator - Ag Business Management

Triennial Conference

Overland Park, KS.

June 9-13, 2013


Program Goals• Introduce farm/ranch & small business owners &

operators to the financial importance of long-term health care planning.

• Outline federal medical programs and how individuals qualify.

• Dispel the many misconceptions about protecting business assets using these federal programs.

• Farm/ranch & small business owners & operators develop & implement a long-term health care plan to protect their business assets.


Delivery, Materials & Marketing

• Face-to-Face workshop setting - PowerPoint slides.

• Workbook:

- PowerPoint slides.

- Case study examples.

- Internet resources.

• “Sponsorship Model”

- Market to local business sponsors.

- Sponsor pays U of MN a program fee. Sponsor selects date, time, location, recruits participants, pays all

additional costs.


Program Outline

• Topics discussed:

- Long-term care issues, terms, costs.

- Medicare & Medicare supplemental insurance.

- Veterans long-term care programs.

- Medicaid program:

• Asset assessment & eligibility examples.

• Income eligibility & examples.

- Long-term care financing options.

- Long-term care insurance.


Evaluative Methodology

• Stage 1: End-of-Meeting evaluations:

- Each participant is asked to complete a one page

evaluation following each workshop:

♦ Focus on increased understanding of key educational points.

♦ Status of their personal long-term health care plan.

• Stage 2: Follow-up evaluation six months following each workshop:

- Mailed to participants with return envelope:

♦ Focus on progress toward developing & implementing their long-term health care plan.

♦ Obstacles and challenges encountered.


Participant Demographics2012 - 2013

• Programs delivered in Minnesota thus far.

• 110 total attendees

• 56 farm/ranch/small businesses.

• 19 local communities represented.

• 3 local program sponsors involved.

• Total number of workshops - 3.

• 70.8% had no long-term health care plan.

• Age range: 42 to 89 yrs., 94.5% over age 55.

• 57.3% male and 42.7% female.


End-of-Meeting EvaluationResults 2012 - 2013

Participant’s Self-Reporting Whether Their Understanding of Educational Points Increased Due to

Attending a Workshop (2012 – 2013)*

* Used Likert Scale with 1 = “Strongly Disagree’ to 5 = “Strongly Agree”

Educational Points MedianScore

AverageScore

StandardDeviation

% Indicating“Strongly

Agree”Or “Agree”

N

Understanding of the importance of having a long-term health care plan.

4

4.48

0.50

100.0% 65

Greater understanding of Medicare and what health costs the program covers.

4

4.37

0.49

100.0% 65

Greater understanding of Medicaid and what health care costs the program covers.

4

4.43

0.50

100.0%

65

Greater understanding of Medicaid qualifications requirements, spend-down provision and income rules.

4

4.40

0.49

100.0% 65

Greater understanding of long-term care insurance as a long-term health care planning tool.

4

4.38

0.49

100.0% 65


Follow-up EvaluationResults 2012 - 2013

Number/Percentage of Participants Starting/Completing Long-Term Health Care Plan

(2012 – 2013)*

Year Item

2012 - 2013

Total Number of

Individuals Returning Surveys

Number/Percentage Starting the Long-Term Health Care Planning Process

19 (63.3%) 30

Number/Percentage of Those Starting Who Have Completed the Long-Term Health Care Planning Process

13 (73.7%) 30

Range in Self-Reported Net Worth Protected Due to Having a Plan in Place

$300,000to

$10 million30

* Number & Percentage of Those Returning Follow-Up Evaluations Only.


Economic ImpactSelf-Reported

byParticipants

$29.7 Million DollarsProgram Impact

Based Upon Participant Self-Reported Net Worth Protected

Based Upon Completing a Long-Term Health Care Plan


Long-Term Care Insurance Plan Types


Long-Term Care Insurance Plan Type Selected

Standard Long-Term

Care Insurance

“Hybrid” Long-Term

Care Insurance

Self InsurePlan

Participants Selecting Insurance by Type

12 (60.0%) 3 (15.0%) 3 (25.0%)


Cost – Benefit Analysis

• Total program cost = $10,917.76

• Includes staff salary & benefits (prep, travel, presentation, & evaluation time), mileage expense, lodging expense and participant materials.

• Total program revenue = $1,500.00

• Includes $1,500 sponsorship fees.

• Net program cost = $9,417.76.


Cost – Benefit Analysis

• For every net dollar of program cost spent, we generated $3,153.61 in financial impact !

• Rate of Return on Investment was equal to 315,261 %


What Have We Learned?

◘ Is a universal issue regardless of business, location, age, etc.

◘ Program demand continues to grow.

◘ “Sponsorship Model” has strengthened our working relationships with local businesses leading to other opportunities plus enabling us to generate revenue.

◘ Works very well not having attorneys present material.

◘ Participants state the workbook is a valuable resource.

◘ Evaluative data shows participant behavioral change based upon knowledge increase of subject matter (outcomes).

◘ Evaluative data shows significant economic impact resulting from the program effort (impacts).


Contact Information

Gary A. Hachfeld

Extension Educator

Agricultural Business Management

University of Minnesota Extension

507-389-6722

[email protected]


Questions ? ? ?

Comments ! ! !

Copyright © 2013 University of Minnesota. All Rights Reserved Long-Term Health Care Planning: Preserving Your Farm or Small Business Gary A. Hachfeld Extension.

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