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Long Term Care

Long term care insurance is a type of health coverage that is often associated with senior members of society. Being able to purchase long term care insurance now through an employer is an attractive part of a benefits package as policies typically cost less when purchased at a younger age and when a person is in good health. Long term care insurance can also cover employees who are dealing with a chronic or lengthy health problem now, even if they have not yet reached senior status. Many people think they will never need long term care insurance, but this type of policy can be a lifesaver for your employees and their loved ones.

Understanding Long Term Care Insurance

Long term care is designed for anyone who needs daily care for an extended period of time, such as people with disabilities, chronic illnesses, lingering conditions from an accident, or other health problems. Those who have long term care insurance fare better when attempting to afford extended health care at an advanced age, while those who do not have coverage must rely on Medicaid or general savings.

Long term care needs will vary from person to person and options will vary depending on the group policy, but potential benefits can include:

  • Simple assistance, such as in-home care with dressing, bathing, eating, and household tasks.
  • Skilled care, such as care provided by therapists, nurses, or other medical professionals.
  • Care coordination services.
  • Expenses for adult day care.
  • Care in an assisted living facility or nursing home.
  • Home modifications to improve accessibility and safety.

Group long term care insurance is offered by some employers, while others may provide individual policies at discounted group rates for employees who want this type of insurance.

Can Employees with a Pre-Existing Condition Qualify for Long Term Care Insurance?
One of the most significant benefits of group long term care insurance is that individuals with health problems or limitations can get coverage, typically without inflated costs.

Because some group insurance plans for long term care do not require underwriting, employees may not have to undergo a medical screening initially to qualify. The elimination of a medical screening, especially for employees with pre-existing conditions, can sometimes sway potential employees to be part of your team. A benefits package that makes the management of their chronic health problems affordable without restrictions is a major incentive.

What Group Long Term Care Insurance Enrollment Options Should You Offer Employees?
Group long term care insurance plans can take various forms, and the options for how the plan is designed will vary from company to company.

  • In voluntary enrollment, employees pay for the entire premium.
  • A defined plan design designates the employer as paying the entire premium (unless the employee wants additional long term care benefits, at which point they will usually pay for the extra premium directly from their paycheck).
  • Similar to a defined plan design, a carve-out package has the employer paying a portion of or the whole premium for certain employees (quite often executives).
  • In a multi-tiered setup, employees are placed on different tiers and an employer’s contribution will vary depending on that employee’s position in the company (executives, managers, employees, etc.)
Should Your Company Offer Long Term Care Insurance to Employees?
Besides a simplified underwriting process, there are many other reasons group long-term care insurance is a good option for employers:

  • Hold on to employees. If you want a more competitive benefits package, include group long term care insurance. Employees will want to hold on to this perk, and you will hold on to employees. Many companies that are working to recruit and retain high-level employees, in particular, will sometimes add long term care insurance as a benefit to enhance the compensation being offered to executives.
  • Take care of employee families. Group long term care insurance can create a big incentive when employees have their own coverage, but when the plan can protect family members too, that can seal the deal for new hires who appreciate the discounted group long term care insurance rates.
  • Enjoy tax perks. Group long term care insurance premiums can be a legitimate business expense and completely tax deductible for C-Corps. Other types of corporations can take partial deductions.

Learn more about the group long term care insurance tax incentives available to your company, as well as the different types of packages available in group long term care insurance and whether a company of your size qualifies. Discuss your company insurance needs with a representative from The Benefits Group. Contact us to schedule a consultation.


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