Like most research over the internet, learning about your Long Term Care options can feel anonymous. You need to know and trust your sources. You will often find merely a form to complete, with a sketchy description of who is on the other end. LTCA is different: we want you to put a face on the company you’re dealing with. We are very proud of our 42-year history and invite you to take a few minutes to read about us.
Robert T. Forman
Long Term Care Associates, Inc.—a Great American Success Story
Like most successful companies, ours was founded to serve a growing need in the community and was nurtured into success by the passion and dedication of our company founders. In 1965, Medicare and Medicaid were formed to provide health care for elderly, disabled, and impoverished Americans. Even with these sweeping reforms there still existed gaps in coverage, particularly for Skilled Nursing Home care. The insurance industry responded with products designed to pay for those uncovered skilled nursing services. Founded in 1972 by Frank M. Forman, Forman & Associates, Inc. soon spread across 11 Western states and counted thousands of Skilled Nursing Care policyholders. Although led with passion and dedication, Forman & Associates, Inc. was on the leading edge of a tidal wave approaching the country.
For all of Medicare’s good, it came at a high financial cost. No one knew this better than the government itself. In order to curb program costs in the 1980’s, Medicare began capping payments to hospitals and doctors based on something called the DRG system where each “Diagnostic Related Group” would be reimbursed a fixed amount. Since, if a provider could treat a patient for less it could keep the overpayment, the easiest way to ensure a profit was for hospitals to shift lengthy recuperations onto the backs of nursing homes. Patients were being discharged “sicker and quicker”. This created an explosion in Nursing Facility utilization. Again, the market responded to this change and Forman & Associates was at the forefront. By the mid-1980’s, Mr. Forman was courted by some of the largest insurers in the country to help design and develop their LTCi products to address this emerging trend.
By the time the “second generation” of LTCi products came to market in the late 1980’s, so too came the second generation of Formans into the now national family business. Robert Forman took over a national distributor based out of Nashville known as LTPC and grew it until it became the largest in the nation, capitalizing on increasingly consumer-driven policies now covering a vast array of care modalities such as Assisted Living and Home Health Care. As the demographic trend known as the “Graying of America” took hold and mobile families made care from remote family members less likely, Gary and Stephen responded to the growing hunger for agent training in the Pacific Northwest to meet the challenge of the burgeoning industry. Frank Forman remained a sought-after speaker for groups as diverse and distinguished as the Department of Health and Human Services, the American Health Care Association, the National Council on Aging, the National Association for Home Care, and the National Governors’ Association, and provided expert testimony before the United States Congress on LTC-related issues.
Like every industry they have touched, it is the Baby Boomers who most shape today’s Long Term Care industry. The amount of care they are predicted to utilize, and its cost, will be unprecedented. It has been made clear by the government that personal responsibility will play a key role in funding that cost of care. Reinforcing this message are LTCi policies with both tax-deductible premiums and tax-free benefits, state-sponsored consumer awareness campaigns, and so-called “Partnership” policies which forgive protected assets from Medicaid spenddown and estate recovery in order to encourage their purchase.
When LTCA’s founders began in 1972, the company’s mission was to ease the financial and emotional burden that a catastrophic care event can have on families. That continues to be our goal today. We’re proud that the claim payments received by our policyholders are now measured in the millions of dollars. Rest assured, when it’s your turn, we treat you like our “only policyholder”. The company was re-branded as LTCA in 2003 and now covers 47 states and the District of Columbia. With nearly 100 years of combined LTCi experience between the principals of our firm and leading the country by serving over 5 million members of sponsoring organizations, our commitment and passion for this business remains as strong as ever.
Thank you for reading our story, and congratulations on taking the first step towards protecting your retirement goals!