Chapter 8 Flashcards
What are the 6 activities of daily living?
Continence
Dressing
Feeding
Mobility
Transferring
Washing
What is long term care?
Long term care is the help provided usually to older individuals who are unable to carry out activities of daily living due to illness or disability
What sources of long term care exist? Name 3
Family
State assistance
Own resources used to fund care
Private plans can be put in place to provide long term care in future if needed
How many ADLs must an individual be unable to carry out before long term care insurance pays out?
Pre-specified number determined by the insurance they take out
The fewer the ADLs the “better” the insurance
What factors affect the need for long term care? Name 3
Age
Personal wealth
Family set up
Degree of disability
What are the 2 main regulators in the UK for financial services?
Financial conduct authority is the sole conduct regulator (previously FSA)
Share prudential regulation (making sure companies are financially sound) with the Prudential Regulation Authority
What are the 2 main groups of long term care products?
Investment linked
Pure protection products
What are the different areas of state support for long term care?
NHS provided care
DWP benefits
Means testing criteria + application
What is the NHS responsible for with regards to long term care in different areas of the UK?
England, Wales and Northern Ireland -meeting the full cost of care where the individual’s primary need is health related
Scotland - cost of nursing care and personal care
What happens if an individual needs health related long term care but the care is not provided in an NHS hospital ward?
Payments are made directly to care home providing nursing care
Payments not means tested and paid tax free
What are the maximum nursing care rates in different parts of the UK
England - £235.88 weekly or £324.50 weekly if established before 2007
Wales - £201.74 weekly
Scotland - £111.90 weekly, personal care covered if eligible from 65 £248.70 weekly
NI - £100 weekly
What constitutes nursing care needs?
Care that must be given by a registered nurse as part of providing, planning or supervising someone’s care
What is the personal expense allowance? How much is paid?
Set annually, currently £30-40 depending on where in the UK
Covers small, weekly expenses of the individual such as newspapers and toiletries
The income is disregarded when means testing
What is a local authority’s role when it comes to long term care?
Assess an individual’s care needs
Carry out a financial assessment to determine if any state support is available
Determine maximum state fee payments
What does the Care Act 2014 state?
Individuals with savings must first use these to pay for their own care before turning to state support
Which guide tells local authorities whether and to what extent individuals provided with residential accommodation by the local authorities must contribute to the cost of care?
The Charging for Residential Authority Guide (CRAG)
What income types are included in the assessment carried out local authorities? Name 5
Income from earnings
Rental income
Private/employer pensions
State pensions and benefits
Pension Guaranteed Credit
Income from trusts
Dividends, bonuses and annuity income
Attendance allowance
What kind of asset types are included in the assessment carried out by local authorities? Name 5
Cash, deposits, savings
Equities at current market value
Properties in addition to main residence
Businesses
ISAs
Other investments
What types of income and assets are excluded from the assessment carried out by local authorities?
Council tax benefit
50% of pension income if spouse or RCP relies on this
Personal possessions
Pension funds
Surrender value of life insurance policies
When is the value of the home disregarded when it comes to means testing for long term care?
Disregarded for first 12 weeks
After 12 weeks still disregarded if there is someone residing in the property who is:
The claimants spouse or RCP
Relative or family member 60 or over or under 18 or incapacitated
A lone parent estranged or divorced from resident
Can a local authority force the sale of a house to fund care costs?
Cannot force sale of home to cover costs
Instead charge is place on the property which must be repaid on the death of the individual requiring care
Known as deferred payment plan
What is the maximum payable for care home fees? What happens when this is reached?
Currently no cap
But cap being introduced in 2025 to limit to £86,000 all care excluding food, energy bills and accommodation
Once cap is reached ongoing care paid by local authority
How much does long term care cost?
£10-£30 an hour
£60k for residential care and £73k in a nursing home annually
When is care provided to an individual based on how much in savings/investments they have
Saving above a certain amount - no assistance given
Below a certain amount - full assistance given
Between these amounts - some assistance given
What is the upper and lower threshold for investments and saving in relation to whether an individual will be entitled to care?
England - £14,250-£23,250
Scotland- £18,000-£28,750
Wales- £24,000 for care at home £50,000 for care in care home (both upper and lower threshold)
Northern Ireland- £14,250-£23,250
How much tariff income must an individual pay for LTC?
£1 for each £250 between lower and upper threshold
What rules exist around deliberate asset deprivation for means testing of LTC?
An individual cannot deliberately transfer their assets to maximise state support
If a transfer was made to prevent its inclusion in means testing, it will be treated as if the individual still owns it
What is sheltered housing care?
What is extra care housing
Sheltered housing is usually made up of a number of flats available for purchase within a complex
Warden on site 24 hours a day in case of emergencies
Emergency button to summon assistance
Often public areas
Extra care housing - the same but rented instead of buying
What is closed care?
Homes built on the same site as a care home with easy access to facilities if required
What are the 5 types of LTC insurance
Immediate needs
Deferred care
Pre funded
Care cash plan
Equity release
