Assisted Living Executive

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INDUSTRY UPDATES | ALFA NEWS

LTC INSURANCE

GRowS ‘INCREASINGLY

PREVALENT’

Assisted;Living;Occupancy;Holding;steady

Arecent online article by U.S. News & World Report calls long-term care insurance policies complicated, but also offers consumers seven tips for making a “sound purchase.” LTC insurance coverage for assisted living will become increasingly prevalent as baby boomers move into senior care communities.

Among the LTC insurance tips published by U.S. News & World Report:

• Check assisted living provisions. The news magazine accurately states that resident services can vary from one assisted living community to another, and advises consumers to ask the appropriate questions.

• Review credentials. “Only buy a policy from an established company with a high rating and experience selling this type of insurance,” the magazine advises.

Eight million Americans have long-term care insurance, and nearly 33 percent of claimants in 2007 chose assisted living. ALFA works closely with proponents of long-term care insurance for seniors, including the American Association for Long-Term Care Insurance.

Recently released fourth quarter 2008 NIC MAP data reveals that assisted living occupancy remained stable from the third quarter. The occupancy rate in the fourth quarter was 89.4 percent, which compares to 89.3 percent in the third quarter. Compared to a year ago, occupancy in the fourth quarter is down 1. 3 percentage points from 90.7 percent in the fourth quarter of 2007.

“The performance of assisted living properties [in the fourth quarter] is quite remarkable given the recent events that have occurred in the stock and housing markets,” says Michael Hargrave, NIC MAP vice president.

Among the top 31 metropolitan statistical areas (MSAs), Boston and Minneapolis have the highest occupancy rates at 94.0 and 93.7 percent, respectively; Detroit (83.7%) and Riverside, CA (85.6%) have the lowest occupancy rates.

“In general, those markets that have not seen a significant impact from either the economic recession or residential housing decline are the markets that have seen the least amount of pressure on occupancy rates,” says Hargrave.

For more information about NIC MAP, visit www.nicmap.org.

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08

90.9%

90.5%

90.7%

90.3%

89.8%

89.3%

91.5%

Assisted;Living;Occupancy;(top 31 MSAs)

89.4%

AL;nurses;get
a;Pay;Bump

The average national salary for a director of nursing in an assisted living community rose to $60,000 in 2008 from $59,627 in 2007. Assisted living RNs and CNAs also saw pay raises in 2008—3.34 percent and 3. 17 percent, respectively.

turnover;rates for;assisted living;nurses held;steady;at about 42

Providers;customize;services
for;diverse;Residents

New research finds that nearly 20 percent of the American population age 65 and older is non-White or Hispanic—and that by 2030, that number will increase to 29 percent. Senior living providers are adapting their services to best serve current and prospective residents.

Across the States 2009: Profiles of Long-Term Care and Independent Living, released by AARP, provides national highlights as well as state-level data about increasing diversity among seniors. Among the report’s other national highlights:

• One out of every five people age 65+ lives in rural, non metropolitan areas where home and community-based services are typically harder to find.

• One third of people age 75+ live alone, which means there is no one

in the household to provide assistance with daily activities.

• More than four in 10 people 65+ have sensory, physical, mobility, self-care, or cognitive/mental challenges that affect their ability to accomplish common tasks of everyday living.