The story begins with Martin Faga, the retired CEO of Mitre Corp., who at age 77 found that he needed in-home care following hospital treatment.
The experience opened his eyes to the often grueling journey to full recovery, as well as the costs associated with long-term care.
In response, Faga and his wife joined the Goodwin House at Home (GHAH) program. If they ever need long-term healthcare, either for physical or cognitive infirmity, GHAH provides a daily benefit to pay for caregiver support. The key to the plan’s attractiveness is that it allows for treatment at the couple’s home, rather than a standalone medical or nursing facility. Faga and his wife have lived in their home for 35 years and are not anxious to leave.
GHAH doesn’t come cheap. Membership cost the couple $180,000, with a monthly fee of $1,000. This supports a daily benefit of $402 to fund at-home care, with a maximum outlay of $1.1 million. GHAH has a range of plans, not all of which are so pricey; everything depends on the insured party’s age and the benefits they wish to receive.
GHAH policies include a care-management component. Mr. Faga said that at first, he considered this a secondary benefit. He changed his mind following heart surgery. GHAH assigned a care manager to organize and oversee all of his post-surgery treatments, therapy and health services. That took a considerable weight off of his mind, as well as his wife’s shoulders.
Faga noted that “because it’s Goodwin House calling a provider, the provider has to perform or it’ll lose lots of business. If I had to call care providers on my own, I’m only one person, so I have less clout.”
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A new way to pay for the single biggest expense in retirement | Market Watch