TWO THIRDS OF RESPONDENTS FAIL METLIFE’S LONG-TERM CARE IQ TEST

IQ TEST REVEALS MOST AMERICANS INCORRECTLY ASSOCIATE LONG-TERM CARE EXCLUSIVELY WITH NURSING HOMES

NEW YORK, October 4, 2004 – MetLife’s Long-Term Care IQ Test, a national poll testing Americans’ knowledge about long-term care insurance (LTCI) and long-term care related issues, reveals that most Americans lack a basic understanding of long-term care. Only about one in three (37%) Americans between the ages of 40 and 70 have the information they need to help them make decisions about their long-term care needs. Only 2% of individuals who took the test received a grade of “B” or better; 7% received a “C” grade on the test; 28% barely passed the test with a “D;” and 63% received an “F,” a failing grade. The IQ Test results were released today by a panel of long-term care industry experts at an event hosted by the American Society on Aging, MetLife Mature Market Institute, and the Milbank Memorial Fund.

According to the survey findings, 55% of individuals between the ages of 40 and 70 incorrectly associate long-term care exclusively with nursing homes. Only one in five (18%) respondents correctly identify their home as the most likely place where long-term care services are provided. A study by the National Alliance of Caregiving and AARP indicates that more than half (55%) of long-term care recipients live in their own home.

“Half of Americans will need long-term care at some point in their lifetime – a significant cost for millions of people,” said C. Robert Henrikson, president and chief operating officer of MetLife, Inc. “Unfortunately, as this study reveals, far too many Americans lack the information they need to help them make decisions about long-term care planning.”

The cost of long-term care services is also one of the areas where Americans have the greatest gaps in their knowledge. According to the survey’s findings:

• Only 27% of respondents correctly identified the average annual cost of receiving long-term care in a nursing home.

• 41% mistakenly believe that they are entitled to basic coverage for long-term care in addition to health insurance from the government at retirement.

• 63% did not correctly estimate the cost of waiting to buy LTCI until an older age.

Most Americans don’t understand how long they will live, or how likely it is that they will need long-term care. Fewer than four in ten (39%) respondents recognize that a 65-year old has a 50% likelihood of living another 18 years, and 72% did not know how likely it is that an 85-year old will need help with his or her daily living activities.

Additionally, 41% of respondents believe long-term care is an entitlement that all Americans are eligible for when they reach retirement age. This same proportion also cites Medicare, Medicare Supplement (Medigap) or disability insurance as forms of insurance that pay for this care. However, generally, Medicare doesn’t pay for long-term care and neither do Medigap or disability insurance.

There are some aspects of long-term care about which Americans are knowledgeable. For example, 94% correctly answered that the need for long-term care can arise due to a variety of causes including Alzheimer’s disease, chronic conditions or an accident. The survey also found that 86% of respondents know that long-term care refers to a situation when a person needs ongoing assistance with day-to-day activities such as bathing, dressing or eating.

“Many baby boomers have misconceptions about long-term care and often do not realize that the need for care can happen at any age, and that Medicare does not cover the costs,” said Gloria Cavanaugh, president and chief executive officer, American Society on Aging. “As more and more boomers find themselves caring for their aging parents, they often become more aware of the emotional, physical and financial issues that result when a loved one becomes ill and needs help with day-to-day activities. This experience can serve as a wake-up call, helping them see the need to put their own plans in place.”