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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.
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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!
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The AGIS Network
• Three integrated segments sharing eldercare and family caregiving information andresources.
The Network
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Bringing You National Leaders
The most relevant information, exclusively delivered, from trusted National Agencies on what to do and how to do it
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AGIS Caregiving Wellness & LTC Education
EmployeeCaregiving EducationalSeminars & Webinars
SpecializedAccount
Management
Employer brandedCaregiving Education
Website.
Employer-branded Caregiving Benefit Communication Campaign
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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.
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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)
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#1 Issue with Family Caregiving
• Caregivers don’t self-identify!
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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
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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
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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.
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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.
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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
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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
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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
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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.
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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
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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
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Retirement Savings (401k, 403b, TSA, IRA, etc.)
.Retirement
Savings
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Retirement Savings Funds Needed
Funds needed fora LTC event.
F
1/2
0
RetirementSavings
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$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.
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Savings Buffer = Asset Protection
Ass
et P
rote
ctio
n
Funds needed fora LTC event.
RetirementSavings
SavingsBuffer
• Reverse mortgage• Annuity• LTC insurance• Etc.
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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.
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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
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OPM Study Conclusions
1. Access to information and resources
2. To feel supported by employer.
Employee Caregiver Top Two Needs
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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
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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
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Thanks for your time!
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