Financing Long Term Health Care
Corrections or additions?
This article was prepared for the December 12, 2001 edition of
U.S. 1 Newspaper. All rights reserved.
Back to Marketing Basics
Stock exchanges weren’t the only places popping with
irrational exuberance back at the end of the last century. “There
was irrational exuberance in marketing too,” says Larry
Garfield,
founder and president of Newtown, Pennsylvania-based Garfield Group,
a 40-person marketing communications company targeting the technology
community. Dollars — lots and lots of dollars — were thrown
around with little thought to where they would stick.
“People felt they had to send money for mind share, for buzz,”
says Garfield. “They spent irresponsibly. They thought money
equals
buzz, and buzz equals stock price.”
Times have changed dramatically, with some saying the dearth of
dollars
being spent on advertising has caused a “100-year firestorm”
in the advertising industry. Still, money needs to be spent to drive
sales. Garfield speaks on how to market effectively in 2002 as part
of a panel addressing “The Changing Terrain for Business in
2002,”
staged by GetContactX on Thursday, December 13, at 8 a.m. at the
Ramada
Inn, Route 1 South. Also on the panel are Paul Mlynarski,
Deloitte
& Touche; Michael Pollack, Register.com; and others. Cost: $30.
Call 610-718-9810.
Garfield, a graduate of the University of Pennsylvania’s Wharton
School
(Class of 1982), founded his company in 1990. It caters exclusively
to the software, Internet, and telecommunications industries. Clients
include Platinum Technology, Princeton Softech, BEA Systems, and
4anything.com
Of business prospects for 2002, Garfield says, “I sure would like
to have a crystal ball.” But while he can’t clearly see where
the industries he serves are going, he is sure of one thing.
“There’s
been a real back to basics,” he says. “When you invest
marketing
dollars, it is about driving to a business result — sales.”
Garfield offers the following suggestions for how marketing dollars
can be made to morph into sales:
Know your market. Brand awareness was overemphasizedduringthe Internet heyday, yet it is still important. “Continue to buildbrand awareness,” says Garfield, “but it’s not about reachingeveryone. It’s about targeting.”It is incredibly expensive to get a message to everyone, as theInternetcompanies that spent millions on Super Bowl ads found out. And manycompanies, especially business-to-business companies selling to justa few industries, might need only to reach several thousand decisionmakers, or maybe only several hundred. Know who they are, and go afterthem, and leave the worldwide consumer audience to others.One of Garfield’s clients, for instance, sells CAD software to theconstruction and engineering industry. For them, “an ad in TheWall Street Journal just to raise the stock price” would befoolish— and unnecessary — says Garfield. Their dollars are betterspent on ads in vertical trade magazines.Don’t give up on the Internet. “There is definitelymore time being spent online by decision makers,” says Garfield.”It’s still the most ubiquitous communication tool ever.”The ‘Net can be a good place for advertisers to be, especially ifthey think creatively. “It’s not just banner ads,” he says.”It’s content and sponsorship. You have to use the Internet ininnovative ways.”The medium has taken a bashing as a sinkhole for ad dollars, and rateson most sites are way, way down. Bargains abound. Says Garfield:”websitesare definitely looking to deal.”Print is old faithful. While the Internet is everywhere,print still carries a big impact. “Being in core verticalpublicationsis extremely important,” says Garfield. “A regular presencein print delivers good return, especially for BtoB(business-to-businesscompanies).Beef up core sales tools. Garfield is seeing a greateremphasis on beefing up company websites, making them sharp,information-filledsales tools. Salespeople’s tools also are getting a good look toensurethat they have everything they need in the field, whether that belaptop sales presentations or the ability to videoconference.Center the message on value. Brand awareness goes onlyso far. Potential customers need to know just how you will boost theirbottom line. “Make sure messaging and pitch is about businessvalue,” says Garfield. “If a business is going to invest whatare limited dollars it needs to know there will be a return oninvestment.”As we approach 2002, the cork is back in the champagne bottle.Now is the time to demonstrate how well you can serve up the meatand potatoes.Top Of PageFinancing Long Term Health CareThis should come as a surprise to no one, but long termhealth care is a pretty expensive proposition.While everyone knows this in general terms, the actual numbers maycome as a bit of a shock. The average nursing home in New Jersey costsfamilies $5,500 per month, and can easily be twice that amount fora shared room in the Princeton area, not including medicine, doctors’visits, transportation to medical appointments — or tissues.Furthermore,statistics show that approximately 43 percent of the population willone day require the services of a nursing home.”Not many people can afford to pay that kind of expense out ofpocket for very long, and sure, it’s best to plan ahead,” saysDana Bookbinder, an attorney who specializes in elder law atBegley, Begley, and Fendrick P.C. “There are strategies thatpeoplecan use. Obviously the earlier you plan the more you can save. Bystarting three to five years in advance, you can really save a lotof money.”On the other hand, it’s never too late either. “People are oftenunder the misconception that it’s already too late if you haven’tstarted planning until after a family member has gotten sick or isin a nursing home,” say Bookbinder. “But that’s not true.It’s still possible to save a substantial portion of an estate eventhen.”Bookbinder finds that many people are unaware of the opportunitiesavailable to them. “Estates are lost, and liens are placed onhouses in cases where it is simply not necessary,” she says. Shespeaks on “Financing Long Term Health Care” on Thursday,December13, at 1 p.m. at a free seminar at the New Jersey Law Center in NewBrunswick. Call 856-235-8501.The goal is to educate people on the variety of ways to financenursinghome care, such as private pay, long term care insurance, veteransbenefits, Medicare, and Medicaid. “But unless people have thefunds to private pay or someone in the family is a veteran, the onlyviable solution in many cases is Medicaid eligibility,” saysBookbinder.”We will outline the requirements to qualify for Medicaid, whichpays for over half the nursing home care costs in this country. Thereare many legal planning techniques available that clients canuse.”Bookbinder graduated from Cornell University in 1992,where she majored in English. She went on to law school at GeorgeWashington University, graduating in 1995. Prior to coming to Begley,Begley, and Fendrick, a Mooresville-based firm with an office at 993Lenox Drive, she clerked for the New Jersey Superior Court in MercerCounty for the Honorable Thomas P. Kelly in the Civil Division.Bookbinder now specializes in Medicaid planning, estate planning,estate administration, and guardianships. She is active in the stateelder law section, currently serving as vice chair and is slated tochair the section next year.”Unfortunately, most people don’t plan too far in advance,”says Bookbinder. “Probably most of our clients come to us aftera spouse has been diagnosed with a progressive illness. Despite theimportance of planning ahead for long term health care, people dotend to neglect it.”Bookbinder offers these tips to those seeking to actively get a gripon their future long term health care needs, whether those needs bein the near or distant future.Retain an expert. Don’t rely on your nephew who justgraduatedfrom law school. “It’s important to see an attorney whounderstandsnot only the Medicaid laws, but also the tax laws,” saysBookbinder.”A lot of financial advisers and general practitioners try togive their clients elder law advice and the problem is that they onlyunderstand half of the law.”An elder law attorney will do a comprehensive review of anindividual’sfinancial situation and design an asset protection plan to help saveas much of his estate as possible. “Nursing home costs are sohigh that very often if one spouse goes into a care facility the otherhealthy spouse’s standard of living is jeopardized,” saysBookbinder.”With planning, we can help maintain their standard ofliving.”The National Academy of Elder Law Attorneys has lists of elder lawattorneys in every state. (520-881-4005 or www.naela.org.)Get organized. Bookbinder recommends that individualsget their estate planning documents in order and make sure they havea good power of attorney and living will. Despite the anxieties manypeople feel many pitfalls can be avoided by careful planning.Start planning early. Bookbinder recommends that everyoneover the age of 18 should have in place a last will and testament,a living will, and a general durable power of attorney. “It’smuch less expensive to do this planning in advance than it is fora family to go to court if something should happen,” she says.”When it comes to planning for long term health care, beforepeoplethink it’s important, it already is. There’s no reason not to planahead.”Despite the myriad anxieties many people feel when facing thepossibility of long term health care needs, individuals can dothemselvesand their families an enormous favor by taking care of these issuesin advance. “The way the law is designed now, individuals whopass away suddenly can leave assets to their children through theirwills,” says Bookbinder. “But individuals who suffer froma long term progressive illness often don’t have that option becausetheir estates are slowly depleted by the costs of their long termcare.”— Jack FlorekNext StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
