The opinions expressed in this presentation are those of the speaker. The International Society and International Foundation disclaims responsibility for views expressed and statements made by the program speakers.

How Boomer Caregiving Impacts Employer Health Costs and Ruins Wellness Efforts and Employee Productivity

Kevin SypniewskiCEOAGIS NetworkSan Ramon, California

© 2013 AGIS Network Inc.

8C-1

Caregiving & Wellness Commonality

Treating the symptom better/more effectively?…or prevent/ameliorate the condition to begin with!

Example: Diabetes—Do I want to get cheaper services, equipment and meds or… address weight, diet and exercise and remove the diabetes altogether.

Caregiving can be very similar!

8C-2

The AGIS Network

• Three integrated segments sharing eldercare and family caregiving information andresources.

The Network

8C-3

8C-4

Bringing You National Leaders

The most relevant information, exclusively delivered, from trusted National Agencies on what to do and how to do it

8C-5

AGIS Caregiving Wellness & LTC Education

EmployeeCaregiving EducationalSeminars & Webinars

SpecializedAccount

Management

Employer brandedCaregiving Education

Website.

Employer-branded Caregiving Benefit Communication Campaign

8C-6

SHRM Report 2008

Elder Care Benefits Provided by Employers

Benefit Percentage of Employers That Provide This Benefit

Elder care referral service 20% Elder care leave above and beyond federal FMLA 13% Elder care leave above and beyond state FMLA 12% Access to backup elder care services (for an unexpected event)

5%

Subsidized cost of elder care 4% Elder care assisted living assessments 2% Elder care in-home assessments 2% On-site elder care fairs (an opportunity for employees to speak directly with elder care experts about the many types of elder care services)

1%

Source: Adapted from Society for Human Resource Management. (2008). 2008 employee benefits: A survey report by SHRM. Alexandria, VA: Author.

8C-7

Eldercare issues at work?

• Employers may not be aware of extent of elder care concerns because many employees do not discuss elder care responsibilities with managers or HR professionals as openly as they will discuss child care issues. (SHRM Report, August 2008)

8C-8

#1 Issue with Family Caregiving

• Caregivers don’t self-identify!

8C-9

Caregiving in the News

Baby Boomers Show Strain of Caregiving

Paul Briand, Baby Boomer Examiner: February 9, 2011

Survey: Most Baby Boomers lack a planto care for parents

Janice Lloyd, USA TODAY 6/17/2011

Health Buzz: Nearly 15 Million Americans Are Caring for Someone With Alzheimer's

Angela Haupt March 16, 2011

Caregivers make medical, professional sacrifices, study finds

Walter Hamilton : April 26, 2011

Toll of Caring for Elderly Increases

June 14, 2011

Caring for Our Aging Parents

Sally AbramsAugust 4, 2011

Much-Needed Break to Family Caregivers Provided by Adult Day Care Services

19 Jul 2011

Caring for an Ill Spouse, and for Other Caregivers

Alix Kates Schulman: May 9, 2011

Parental Caregiving is Costing Baby Boomers Money, Opportunities

Temma Ehrenfeld: June 14, 2011

1 in 4 Provide Unpaid Care for an Adult

Mary Pilon: July 18, 2011

10 Tips for Caring for Aging Parents

Philip Moeller: July 18, 2011

8C-10

National Caregiving & LTC Situation

• Record senior population growth– Life expectancy hits record high– 78 Million Baby Boomers– An American turns 60 every 7 seconds; 4.2M a year

• Geographic family dispersion

• Fewer caregivers

• Average age caregiver = 49 years old

• Average caregiving duration = 4.6 years

8C-11

Why Should Employers Care?

• Nearly 73% of caregivers are employed . . .and 33% experience severe emotional stress

• 68% of employees aged 45-54 missed work/left early to care for a parent in last 6 months

• Eldercare costs corporate America $308 per employee per year in lost productivity; that’s$33.6 billion per year.

8C-12

Business Cost of Caregiving

• 40% rearrange schedule• 36% miss work days• 12% take leaves of absence• “Presenteeism”

$308 per employee per year in lost productivity

Plus Healthcare Costs!High stress creates:• depression, • high blood pressure,• immune suppression,• eating disorders• changes leading to obesity, heart disease, diabetes and others…

• Caregiver health problems may cost U.S. companies about $13.4 billion/yr.

• Caregiver-employees ages 18 to 39 have 11% higher health costs than noncaregivers.

8C-13

Business Cost of Caregiving

• UNUM reports FML “parent” claimants—– 4x more likely to file LTD claim…and LTD claims mean

high medical claims

• Cigna reports FML claimants—– 5x more likely to later file STD claim

– 50% more likely to develop disabling behavioral illness

• National computer company reported – 2x increase in FML days lost due to “parent & spouse”

care over last 24 months

8C-14

MonthlyBill Paying

The Path Toward Caregiving

WeeklyShopping

DailyActivities of Daily Living

1. Bathing/hygiene

2. Dressing

3. Eating/feeding

4. Transferring

5. Toileting

6. Continence

ADLs

8C-15

Wants anew hairdo

A Day in a Caregiver’s Life . . .

Needs a bath

Needs help with her bills

Needs groceries

Needs home modifications

Needs transportation to the doctor

Needs her Rx filled

Needs help dressing

Needs help walking

Needs hercheckbook balanced

Needs meals

Needs bathroomassistance

Needs help with her mail

Wants toattend church

8C-16

Common Questions/Common Answers

• Why won’t my parents listen to me?

• How do I get the car keys away from…?

• Why would I need to change mom’s house, she’s

lived here for years?

• How do I begin the discussion with mom/dad on

such a topic? They’ll think I’m worrying about

inheritance.

8C-17

National Average LTC Costs

• Skilled Nursing Facility– Averaging: $83,585 per year

$ 6,965 per month• Assisted Living Facility

– Averaging: $39,516 per year$ 3,293 per month

• Home Health Aide– Averaging: $ 21.00per hour

$ 168.00 per 8 hour shift$ 10,080 per month if 2 shifts per day.

Source: 2010 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs

8C-18

Financial Impact for caregivers

• 73% of primary caregivers reduce contributions to savings due to caregiving

• 80% of the primary caregivers reduced retirement contributions

• 401(k) plan contributions drop 65% for primary caregivers

8C-19

Retirement Savings (401k, 403b, TSA, IRA, etc.)

.Retirement

Savings

8C-20

Retirement Savings Funds Needed

Funds needed fora LTC event.

F

1/2

0

RetirementSavings

8C-21

$0

$100K

$200K

$300K

$400K

$500K

$600K

$700K

$800K

0 10 20 30Years

Inflation Effects on Future LTC Costs

• Skilled Nursing Facility:$83,585 year

• Average Stay:2.5 years

• Total Average Cost:≈$209,000+

• Assumed MedicalInflation: 5%

$903,285

$209K

$340K

$554K

If Married: X2.

8C-22

Savings Buffer = Asset Protection

Ass

et P

rote

ctio

n

Funds needed fora LTC event.

RetirementSavings

SavingsBuffer

• Reverse mortgage• Annuity• LTC insurance• Etc.

8C-23

Employees Long Term Portfolio

$ 2,250

$ 246,890

ER w/ 401k

$ 2,250

$ 2,250

0

$ 246,890

0

EE ContributionER Contribution

401k Match

LTC Premium

Total ER Cost

EE Benefit

401k

LTC Benefit

Total EE Value

ER w/ 401k & LTC

$ 2,250

$ 1,880

$ 370

$ 2,250

$ 226,590

$ 360,000

$ 586,590 + 138 %

- 8.2%

Assumptions: EE age 40, earning $75,000/year, contributes 3% to 401k plan. Retirement age 65. ER 401k match is 100% up to 3%. 401k plan average earnings @ 6%. LTC plan pays $5,000/month for 6 years.

8C-24

Case Study: Health & Wellness Credits

Goal: Increase Health and Wellness• Caregiving is undermining Health & Wellness

Efforts• Provide employees “Health & Wellness Credits”

for attending Caregiving Seminars• 44% prevalence of caregiving in the workforce

8C-25

OPM Study Conclusions

1. Access to information and resources

2. To feel supported by employer.

Employee Caregiver Top Two Needs

8C-26

Survey Says…

Over 10,000 AGIS client employees responded:• Have you or your family members been recently

involved with caregiving?– 44% YES

• Would you recommend this seminar to your co-workers?– 98% YES

8C-27

Current & Future Solutions

• Employee Assistance Plans – Helpful but reactive

• Care.com, PlaceForMom.com, etc. – Reactive but often helpful

• Managed FMLA– real data to shed light on adult caregiving

• Proactive education & workplace discussion– Education for “non-caregivers” too—top down approach

• Regular “touches” & Workplace Support Groups

8C-28

Thanks for your time!

8C-29