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Thau, Inc. provides the following long-term care insurance (LTCI services):
Consulting services Consulting capabilities
Wholesaling services Long-Term Care Insurance services for brokers Our Personnel and Services Broker email comments to Claude Thau How Thau, Inc. can help your insurance broker or investment advisor serve you better relative to LTCI needs Claude Thau's resume Selected LTCI articles and speaking engagments (including commitments) Sample public policy article: "Medicaid Reform Suggestion" by Claude Thau Favorite long-term care insurance (LTCI) web-sites
Specialties:
In addition to his personal services, Mr. Thau can bring in other experienced professionals with LTCI expertise in underwriting, claims, actuarial analysis, sales training, and compliance issues, as well as buying, selling and reinsuring LTCI blocks.
As a consultant, he specializes in LTCI strategic planning, including designing product, distribution, sales materials, underwriting, and administration to serve an insurance company's market most effectively, while minimizing investment and risk. He can be reached at: cthau@targetins.com; 800-999-3026, x2241.
His home office experience is complemented by LTCI sales experience (in addition to consulting, he currently wholesales LTCI) and personal LTC experience due to relatives' need for commercial care.
The primary markets for Mr. Thau's consulting services include:
References: Name nearly any insurance company that sells LTCI and Mr. Thau will provide the name of someone at that company who knows him. He makes that offer in the hope that it will make you feel more comfortable that the reference is objective.
Further below you will also find a partial list of compliments I have received from brokers nationwide. If you'd like references, pick some of the people who have complimented me and I'll supply their name and phone number. Alternately, I could give you names at probably any of the insurance companies which write LTCI. I prefer to give you some control over who my references are. That way, you can feel more confident that you are not simply talking to my best friends.
We can, of course, support your needs in the individual market, but what really distinguishes us is our expertise in sponsored markets. For example:
a) In the top 10 in individual LTCI salesThe first criterion is intended to select companies that know what they are doing in LTCI and the second obviously selects based on financial strength.
b) In the top 15% of all insurance companies in terms of financial strength
(Note: Target also markets variable and/or fixed life insurance or annuities,
including a variety of indexed annuities; term insurance; disability insurance;
and substandard annuities with many insurers. I'd be happy to make
introductions for you with other Target staff, if you have any interest
in those areas. I focus solely on LTCI.)
General information and ability to answer questions
2000- : Long-Term Care Insurance Wholesaler, Target Insurance Services
1994-99: Senior Vice President, Transamerica Occidental
Life Insurance Company
Senior Officer, Long Term Care
Insurance (LTCI), TOLIC
Claude and his wife, Tina, have been married for 30 years. Their son, Andrew practices law in NYC and their daughter, Tracy, is an undergraduate at Northwestern University. Claude is involved in non-profit activities with a variety of organizations. For example, he serves as the Chairman of the Board of the Center for Long-Term Care Financing and works with the American Stroke Foundation and Midwest Bio-ethics Center.
Selected LTCI articles and speaking engagements (including commitments)
Thanks again, Claude, for your valuable time with me. I picked up quite a bit of good info from you that will be helpful. Great ideas! --- Kathleen B.
I am lucky to have you working on this. I appreciate what you are doing for me. Your Loss Ratio e-mail of 12-15-02 is just what I need to know that I'm offering stable companies - It is excellent and appreciated. --- Jay B.
I so appreciate your warmth and generosity of spirit. --- Gayle C.
Thanks for the letter. You’re being very helpful in everything. Thanks again. --- John C.
It's obvious you've spent time responding and giving your thoughtful and VERY APPRECIATED and highly valued input on my letter. And thanks for these tools, this is exactly the kind of stuff I'm a-wanting and am excited about digging into it. --- Marshall C.
Thanks for all of your help on this Claude. It helps me understand a lot more about LTC and refer people to you with the utmost confidence that you will take care of them. --- Pete D.
I truly appreciate you providing me with additional marketing ideas for LTCI as well as tax information. Anything you think of that will help me push through the $200K goal this year will be appreciated! --- Todd D.
I rely on your expertise because you are an actuary with a personality and have an uncanny way of being able to convey to clients why LTC is such an important part of a person's future plans. --- Howie F.
Thanks for both of the presentations. They are very well done, and I expect to put them to good use. --- Joe G.
Thanks Claude for taking time yesterday to visit with [my client, by phone]. She really appreciated what you had to say in regard to her questions. --- John H.
WOW! Thanks for the speedy and EXTENSIVE review of companies for [my clients] ---Cheryl H.
What little time we spent together, it was like sitting at the master's knee. I have always learned more about LTCI from you than from any other source. AND, I can actually understand what you are saying!! Thank you. --- SH
Thank you for your attention to detail. --- GWH
Thanks for your follow-up. You are the best! ---Kyle K.
I have been impressed with the speed of your responsiveness, your attitude of going the extra mile to support me, the extra tools you supplied me with, and your competence and expertise. ---HL
I would just like to say that after being in the Life & Health business for over 35 years it never ceases to amaze me of all that I have yet to learn. However, with Long Term Care my job has never been easier. Your astounding resources of information & the quality of Mary Dempsey's organizational skills makes you a Winning Team. --- Bill L.
Excellent work! You should publish your statistical analysis. You are Mr. LTC!!!!! --- Rob M.
Claude, I want to say how much I appreciate the attention to detail you show as well as your proactive explanations as to why you put together the proposals you do. ---Randy M.
Working with you and Mary D has been a real pleasure. I find your office to be extremely well informed with great attention to detail and follow-through. It was because of your expertise that I obtained the LTCI business I wrote. My clients appreciated your honesty and objectivity in helping them choose the right policy. --- Mike M.
Please let Claude know that his emails are most helpful! Thanks Mary! --- Nathan N.
Wow, did you ever put some thoughts into this!! Can't thank you enough again for all you A+++ work. You are the BEST! --- Cathy P.
With your help I know that I have all the right tools available for every case and I have your experience and competence behind me in selecting the best products for my clients. ---Jim R.
We have already received favorable comments from today's meeting attendees. The slides and handouts are clear and helpful - the business brochure, is especially handy. We are impressed with how seriously you and Mary address the details that we think are so important for our clients. Thank you very much. --- Pat S.
It pays to work with the experts. --- Melissa S.
You are clearly one of the best and most knowledgeable people in our business. I am so happy that [common friend] helped me find you. Thank you for your encouragement. ---- Karen S.
You are amazing, I thought I knew how to get around but you have given me a toll to attack this situation. Thanks a bunch. --- Sam S.
I wanted to take the time to address my appreciation toward the assistance I have received from you. I have been selling LTCI almost exclusively from four years. I have my CLTC designation and probably have over 300 long-term care clients since I have been in the business. I have been on the Peter Newman talk show as an expert on long-term care insurance. Yet to this day I find great value in consistency using you on a sales conference call. You were very knowledgeable on the competition and the issues at hand. As a result we won the case. I truly believe I might not have gotten this case without your support. Claude, thank you for you time, your urgency to return my calls, and your continued support to build my long-term care business. --- Mike S.
Fantastic, Claude! --- Lori S.
You have helped me many times with long term care concepts as well as insurance over the years. In fact, the main reason I started dealing with long term care insurance at all was because of you. I would love to give you some business for all the work you have done with me. --- LS
Fantastic!!! You and your staff have been invaluable to me in my business since I decided to become independent. The information and education you've provided has made me a better financial advisor. Thanks Claude. ---Ron S.
Thanks for your thoughtful response. Your spreadsheet saved me lots of time.-- - Michael U.
Claude, can't thank you enough for the presentations, et. al. you forwarded. Thanks for the ideas and the support. Very strong recommendations and suggestions! I am so impressed with your support and services, I truly am. YOU'RE THE MAN, CLAUDE. ---MV
Thanks very much Claude. You are truly a prince! --- OW
I like how you think!! --- Bob Z.
But brokers' medical or life general agents are unlikely to match Thau,
Inc.'s LTCI expertise.
Full text of a public policy article written by Claude Thau
Through Medicaid, we do two wonderful things for people who need long-term care (LTC). First of all, we all pay taxes so that indigent people can get commercial LTC that they otherwise would not be able to afford. We should all feel proud to contribute to that cause.
Secondly, we provide support to people who are NOT indigent. If people were to sell their homes in order to pay for LTC, and then were to recover, they could no longer return home. To avoid such an undesirable result, we give them advances (loans) to cover their LTC costs, with the intention of recovering when their estate is settled.
Not only do we pool our money to provide a loan to such people, we provide that loan on an interest-free basis! And it is a long-term loan as it does not require repayment until the care recipient dies. And if the recipient’s spouse is living in the house, the loan does not have to be repaid until the spouse dies. If disabled or minor children live in the house or if adult children who were care-givers for a couple of years live in the house, the loan continues until they die or sell the house.
It is wonderful that we provide such loans, but such loans should be
provided OUTSIDE the Medicaid program. When we do it through Medicaid:
· Loan recipients feel the sting of being "on welfare".
These people have been independent since their youth and have saved in
order to maintain their independence. Why should they be placed on
Medicaid when they are not indigent?
· Being on Medicaid, they are restricted to Medicaid-certified
LTC providers. They cannot select the facility of their choice; nor
can they have a private room; nor can they select an assisted living facility,
commercial home care or reward relatives or friends for providing care.
Why should their use of their money be restricted?
· LTC providers, such as nursing homes, are paid the government
Medicaid reimbursement, which is inadequate. Why should providers
not receive full cost?
Medicaid reimbursements pay LTC providers less than the cost of LTC. When state budgets are tight, as they are now, legislators and governors propose slashing such payments even further. Meanwhile government pushes provider costs upward with a variety of mandates, such as quality controls, mandatory staff training, etc.
Because of low reimbursements, LTC providers cannot afford a competitive salary. So when they train staff, the newly-trained person secures a higher-paying job in a hospital or elsewhere. The vacancy not only reduces the quality of care in the facility, but the facility incurs cost seeking and hiring a new employee, who typically is less experienced than the person who left.
The best staff leave, as they are most in demand, but providers get stuck with their hiring mistakes. Surely, they should fire these weak performers, right? Unfortunately, it is not easy to fire anyone when you are understaffed! Of course, as time goes on and they suffer 100% annual turn-over (some jobs turn over more than once; others not at all), the labor pool quality, as regards care-givers, likely deteriorates. Even outstanding managers have an extremely difficult time providing excellent care in such an environment.
Private-pay LTC recipients in Medicaid-certified facilities get “taxed” in three ways to support this system: 1) they pay income taxes to support Medicaid; 2) they pay higher fees to LTC providers (subsidizing the costs of Medicaid recipients); 3) they suffer from inferior care in facilities which have many clients “on Medicaid".
Therefore, some savvy private payors now refuse to enter Medicaid-certified facilities. Instead of being seen as a badge of honor, Medicaid “certification” may be viewed as a public announcement that cost transfer will occur and that care might be inferior.
Another problem occurs when we, the tax-payers, try to recoup our loan. Various parties bewail the plight of “poor Sarah” who wanted to leave her house to her children, but whose estate had to sell the house because it was partially encumbered by a government lien. Of course, recouping payments from the “indigent” sounds questionable.
However, those people were not “indigent”. The critics never mention that we all gave Sarah a 20-year interest-free loan and all we are trying to do is to recover the principal (no interest) so that we can lend the money to someone else.
So, how can we get out of this mess? A key tactic: stop putting people on Medicaid if they have assets which could fund their LTC. Instead, such loans could be government-backed, but financed privately. This simple change would have dramatic impact:
a) Such care recipients would no longer feel the indignity of being
"on welfare".
b) Care recipients would have flexibility to use these loans to purchase
the kind of care they want, from whomever they want. Their buying
decisions would encourage consumer-driven efficiency in the marketplace.
c) Many more care recipients would remain “private payors” rather than
being on Medicaid. Providers would benefit from the resultant higher
fees.
d) The additional provider revenue would lead to reduced cost transfer
from Medicaid LTC recipients to private-pay clients and/or improved care.
e) Because fewer people will go on Medicaid, tax-payer money will be
saved. We could afford higher reimbursements for Medicaid patient
care (which would also reduce the cost transfer to private pay clients).
f) We avoid the whole concept of "repaying Medicaid" and "government
liens".
From a State Budget point-of-view, this proposal has several positive
aspects to it:
1) There will be many fewer people on Medicaid, so Medicaid payments
for LTC will decrease substantially (recoveries will disappear, but recoveries
do not offset the up-front payments and come many years later).
2) Significant savings can occur in determining Medicaid eligibility
and processing Medicaid payments.
3) The entire administrative effort for recoveries can be dropped.
4) In addition to the substantial savings in expenses mentioned above,
there could be an increase in revenue! The additional income of LTC
providers will be taxable. Lenders’ profits would also be taxed and
there would likely be more sales of long-term care insurance, which would
generate premium tax revenues. (Possibly offsetting some of that
income, individuals might be able to take tax deductions for the LTC costs
they incur, for their loan interest and, in some states, for their LTC
insurance premiums.)
The State also benefits from increased investment in LTC services and more consumer control of the selection of their LTC provider. Furthermore, there will be more incentive for family care-giving. These changes should increase choice, improve care and reduce cost.
An alternative loan program already exists. However it does not provide government-backed loans and is limited to $50,000. Formerly known as “Grannie Mae”, the program is now called ElderLife Financial (www.elderlifefinancial.com). Unfortunately, I found the following quote on the Grannie Mae web-site: "Currently, Grannie Mae's Passports primarily accommodate families seeking Assisted Living Community or Continuing Care Retirement Community, needs respectively." Why is that? Apparently because CMS and the states are treading on its responsibilities, ElderLife is only effective making loans for providers not covered by Medicaid.
We need to continue to provide LTC to the indigent, but we should attempt to improve the quality of care. This can be accomplished indirectly if we continue to provide loans to people who need LTC but lack liquid assets, but do so through a private lending, government-backed program rather than through Medicaid.
The author can be reached as follows:
Claude Thau, President, Thau, Inc., cthau@targetins.com
Ph: 913-403-LTCI (-5824); 800-999-3026, x2241; Fax: 913-384-3781
Thau Inc. was established to help create a sound long-term care
insurance industry in the U.S.A. It works in 3 areas:
a) Consulting for LTCI companies, providers of services, employers,
associations, insurance agencies, etc.
b) Wholesaling LTCI by training and servicing insurance brokers across
the country.
c) Advocacy work.
Note: An earlier version of this article was first published electronically under the title "How to Save Medicaid LTC" on 24Oct02 by the Center for Long-Term Care Financing. Information regarding the Center for LTC Financing can be found at http://www.centerltc.org.
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