SENIOR SPIRIT
Living Longer & Loving It
WILL YOU LIVE TO 100?
There are now 70,000 centenarians living in the United States, doubling the number just 10 years ago. A predicted 3 million baby boomers will live to be 100. Do you want to live that long? What are your chances?
To answer those and other questions, Senior Spirit contacted Dr. Thomas Perls, assistant professor of medicine, Harvard Medical School, and a geriatrician at Beth Israel Deaconess Medical Center. Perls founded the New England Centenarian Study (NECS). In 1999, Perls and his colleague, Margery Silver, published the study's compelling results in Living to 100: Lessons in Living To Your Maximum Potential at Any Age.
SS: Is there sufficient evidence that good living is possible at or near 100?
TP: Absolutely. If you are capable of living to 100, that's exactly what you have been doing. The centenarians we studied survived because they had strong genes. But they share other qualities; they are physically and mentally active, handle stress well, have strong family ties, approach life with optimism and humor, and adapt well to change. And many approach the century mark without dementia or Alzheimer's disease.
SS: What mindset must we shed if we're to age successfully?
TP: NECS disproved the idea that old means sick. We now know that the older you are, the healthier you have been. Medical advancements and improved public health offer all of us at least 20 to 20 years of very good health after age 65 if we take advantage of preventive screening and improve our lifestyle habits.
SS: When is it too late to make the necessary lifestyle and attitude changes?
TP: It's never too late. The earlier we come to terms with choices that impact quality of life as we age - smoking, obesity, sedentary living habits - the better our chances to truly enjoy life as we age.
SS: What's the most important thing we can do to assure good health as we age?
TP: Strength training can make a huge difference. Physical frailty is the greatest threat to independence. Simple things, like lifting weights or even milk jugs filled with water or sand, can improve strength and muscle mass. This translates to fewer falls, weight loss, improved sleep patterns and enhanced cognitive functioning.
SS: How do we finance longevity?
TP: Rather than early retirement, consider second and third careers along with additional education to make life's progression one of growth and change. The traditional model of one career with one company is obsolete. We have launched a "Health and Wealth Study" in conjunction with Scudder-Kemper Investments to discover strategies that complement living longer. Preliminary findings reveal that children of centenarians are much more aggressive in their investment behavior. And more of them use the services of financial planners.
SS: What was your most pivotal discovery?
TP: Our initial studies allowed us to narrow our focus to two chromosomal regions that centenarians we've studied may have in common. We've been collaborating with Harvard's Molecular Genetics Laboratory at Children's hospital to study specific genes within these chromosomal regions that are shared by our age-defying subjects. It's very exciting to us. One outcome of our work might be drug discoveries to mimic the decreased susceptibility to age-associated diseases that show aging centenarians experience.
SS: What's next?
TP: We are now soliciting candidates nationwide to participate in the Single Centenarian Study, for individuals 100 or older, and the Centenarian Sibling Pair Study, for people 98 or older with living siblings who are at least 90 years old Our goal is to enlarge our subject group so that we can better understand longevity and susceptibility to the devastating diseases associated with aging. If you know someone who might qualify for either study, call us toll-free at 1-888-333-6327.
SENIOR MEDICAL BREAKTHROUGHS
Tips to improve mental fitness
By Kelli Michel
Looking for ways to maintain mental sharpness? Consider exercising your brain. Scientists once believed our brains were fully wired, good or bad, by the age of 5. Brain cells lost through aging were considered gone forever.
But new research encourages belief in the brain's capacity to grow new neurons. This promising new discovery is called neurogenesis. Scientists have discovered the brain can create new pathways. Those pathways can bypass damaged cells and send messages to intact ones. Not only will this important finding help Alzheimer's and stroke victims, it is also beneficial for those wanting to keep their brains fit in adulthood.
So how can we ensure neurogenesis? Simply put, use it or lose it. Just as the heart benefits from physical exercise, mental exercise "tones" the brain. The brain is a creature of its environment, shaped by interaction. Continued learning can protect the brain from disease and increase its ability to re-grow damaged cells.
Learn something unfamiliar. If you play the piano, learn to play the guitar. Learn a new language or learn to play chess. Emotional attachments strengthen memory recall, so make time for family and engage in conversation. Unfortunately, watching a new television show or doing a few crossword puzzles doesn't count. You get maximum benefit when new activities are done consistently over a lifetime. Visit www.brain.com for more information and quick tests designed to help you keep your brain fit.
TRAVEL AND ENTERTAINMENT
Make Airline delays part of your travel plan
This summer, air travel woes reached unprecedented heights. Today, labor disputes, weather problems and overburdened air-traffic systems are "normal" rather than unexpected. Consider these tips when you book your next flight.
Plan travel at off-peak times if possible. Monday noon to Thursday noon and Saturday noon to Sunday noon are the best. Avoid peak tourist and holiday seasons.
Before booking, check the flight's one-time arrival record. Major airlines must now rate each flight's on-time arrival record with a rating of 0-9. Eight, for example, means 80% of that flight's arrivals are within 14 minutes of the scheduled time; 2 means 20 percent, etc. Ask your travel agent or airline for this information.
Read the disclosure statement on the back of the ticket for your rights and responsibilities and for the airline's liability for overbooking or lost luggage.
Check with the airline in advance about services, vouchers or other assistance they provide in the event of delays or cancellations.
If you are "bumped" involuntarily due to overbooking, ask for a written statement of your rights.'
To avoid "bumping", get to the airport early to meet the flight's check-in deadline.
Be prepared for delays - they will occur.
Stay calm. Angry exchanges with airline personnel are rarely productive.
LONG TERM CARE STRATEGIES FOR SENIORS
An incentive to insure long-term care
Tax-qualified policies
By Gregory P. Seal, CFP, MBA, CIMC
Forty percent of us will eventually need long-term care. For most, there is a continuum of care that begins in the hospital and moves to increasing amounts of professionally supported in-home care. Then comes the nursing home with stays averaging 2.5 years. Since annual care costs today are $30,000 to $65,000, it's time that Americans make plans to pay for their own care without decimating their estates. Long-Term care (LTC) insurance ensures care and protects assets.
IN 1997, THE health Insurance Portability and Accountability Act (HIPPA) became law. This legislation offers federal and state tax advantages to policyholders. The insurance industry now refers to this type of LTC insurance as "tax-qualified." So what does that mean?
First, premiums paid for tax-qualified plans are tax deductible if you itemize deductions and your premiums and other qualifying medical expenses exceed 7.5 percent of your adjusted gross income. There are annual limits to premium deductibility, however. Currently, these limits are:
Age 40 or younger $220
Age 41-50 $410
Age 51-60 $820
Age 61-70 $2,200
Ages 71+ $2,750
In addition, benefit dollars paid from tax-qualified policies are not considered taxable income.
For policy benefits to "kick in," a Licensed Health Care Practitioner must certify that you are chronically ill," requiring either:
- Substantial human assistance with at least two Activities of Daily Living (ADLs)* for at least 90 days; or
- Substantial supervision to protect your health and safety due to severe cognitive impairment.
Tax-qualified LTC insurance premiums are less expensive because benefit qualification follows stricter guidelines. And, if you have significant ongoing medical expenses that allow you to itemize these expenses as well as LTC premiums, a tax-qualified policy may be the right choice for you.
Planning for long-term care is an important decision. Make sure you consult with your insurance professional and a tax specialist before purchasing any policy.
*ADLs include bathing, dressing, continence, ambulating, toileting, transferring and eating.
Tax-Qualified not for everyone
By Richard Bratcher, CSA
Whether you choose tax-qualified (TQ) or non-tax-qualified (NTQ) long-term care insurance is a decision based on your circumstances and needs. The overall goal of any long-term care insurance purchase is to provide access to care and services. And while a potential tax break is important to some, for others, the ease of accessing benefits is the decision point. Consider these qualification requirements for benefits with non-tax-qualified long-term care insurance:
- Inability to perform two Activities of Daily Living (ADLs); or
- Cognitive impairment; or
- Medical necessity*.
This qualifies you for benefits through a discretionary decision by a physician.
There is no requirement for 90-day "chronically ill" certification, and any one of the above opens the door to benefits. Because qualification is less stringent, NTQ allows easier access to benefits. For that reason, NTQ policy premiums are more expensive. You must weigh higher premiums against the probability of accessing care if needed.
In terms of taxability of benefits, there is no guarantee that benefits from NTQs will NOT be taxed. And there is no precedent indicating that benefits WILL be taxed. In the absence of a firm declaration of IRS intent, many reputable insurers offer policyholders automatic conversion to a TQ policy should the government decide to tax long-term benefits.
Before purchasing any long-term care insurance, make sure you balance the tax gain or loss with the coverage gain or loss. For more information, consult with your CSA or a tax specialist.
*Some companies do not offer medical necessity as a benefit trigger. Check before you buy.
These articles are for information purposes only. Make sure you understand how any insurance works and how the policy requirements will affect you before you buy. Consult with insurance, legal and/or tax professionals to assure an informed decision.
Partnership for long-term care
The Partnership for Long-Term Care is an alliance between Medicaid and private insurers that offers an alternative to spending down assets to qualify for Medicaid. The participating states - California, Connecticut, Indiana and New York - work with insurance companies to develop policies that offer consumers an opportunity to protect assets while taking responsibility for the costs of long-term care. Two models are in use, depending on the state involved.
The Dollar-for-Dollar Model, used in California, Connecticut and Indiana, requires policies to cover at least one year and pay a minimum per-day amount that varies from state to state. Once policy benefits are exhausted, Medicaid application can be made using special eligibility rules. Those rules allow every dollar paid as a policy benefit to be deducted, or protected, from Medicaid eligibility requirements. For example, if $50,000 in benefits is paid, depleting the policy $50,000 of the insured's assets will be sheltered from Medicaid's test for eligibility.
The Total Assets Model, adopted in New York, requires policies to pay a minimum daily benefit for three years in a nursing home or six years of home health care. Once benefits are exhausted, protection is granted for all assets, but the individual's income must be devoted to the cost of care.
If you life in a partnership state, contact your CSA for more information.
PRACTICAL TALK ON RETIREMENT ISSUES
The bottom line on prescription drugs
By Crispin Sargent, CSA
Prescription drugs to treat acute and chronic conditions benefit millions, but the price tag is enormous. Those over 65 - 13 percent of the population - consume more than 33 percent of all prescription drugs at an average annual cost of $1,539 per person. And that cost is rising exponentially. According to Families USA, the cost of prescriptions most used by seniors has doubled the rate of inflation for six years running.
On the good-news side, two-thirds of Medicare beneficiaries already have some level of prescription coverage through supplemental plans or as part of HMO plans under Medicare+Choice. The current legislative controversy concerns the one-third without prescription coverage. Regardless of the debate on proposed solutions, the system can't afford the benefits it already provides.
Both political parties want voluntary drug coverage with a basic plan requiring an annual deductible and then a 50 percent benefit to a capped amount (same as Medigap policies H, I and J). In addition, both parties want to provide catastrophic coverage after out-of-pocket deductibles are met, and they want premiums to be based on income. The parties differ in plan administration: Democrats want Medicare to run it, while Republicans want coverage by private insurers.
What neither party seems to understand is an insurance program cannot be voluntary AND affordable, because only those needing coverage will apply. Any proposed premiums will never cover the escalating cost of drugs. For any of this to work, both beneficiaries - the patient and the drug companies - must contribute to the solution. Consumers will have to pay higher premiums, deductibles or both. Any drug companies will have to regulate their own prices or submit to government regulation.
CENTENARIAN SALUTE
Mark Powell
By Lynn peters Adler, JD
On his 100th birthday, Mark Powell asked his family and friends to contribute to his favorite charity. "I wanted to do something to help children," he said. To everyone's surprise, contributions totaling $11,000 poured in. "That pretty much speaks the measure of this man," says his wife, Blanche, 86, a retired elementary school principal.
Mark was both on March 2, 1898, one of 11 children. "I've done lots of things to earn an honest living," he remembers. "I was a chauffeur and butler for several prominent Baltimore families, and a steward on a private yacht for several years. I was butler for Admiral Thomas Hart, who was superintendent for the Naval Academy in Annapolis." In his soft-spoken, engaging way, Mark continues, "I then opened a grocery store in my neighborhood. Later, I worked as a maintenance man in a public housing complex for 28 years". Then he retired. "That lasted about a month," he recalls. Just as Mark tired of too much leisure, he was tapped to manage a housing development. "I managed the 181-unit complex for 25 years, finally retiring at age 91," he says.
Mark threw a fund-raiser last year for a mayoral candidate. "we had a cookout in my yard - I called it, "A Rally for O'Malley." We had soft-shell crabs, hot dogs, hamburgers, the works! I even rented a port-a-pot. Martin O'Malley showed up with the media in tow. When O'Malley won, we had front-row seats at the inauguration - even attended the Inaugural Ball."
Through the efforts of the National Centenarian Awareness Project, Mark and Blanche were featured speakers at the 35th anniversary celebration of Medicare in Washington, D.C. in July. At the podium, they stressed the importance of prescription drug coverage for older adults. Then, they introduced Donna Shalala, HEW Secretary. "Imagine me," Mark says, " introducing a cabinet member at a celebration like this."
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