CLASS, the provision of the 2010 Health Care Reform Act that asked all employers to enroll their employees into a government-run long term care insurance program, has been dissolved. If you are a business owner, you might be surprised to learn that long-term care benefits now rank as important to employees as life and disability…maybe, in time, even above the healthcare benefits you may currently provide.
Some Myths & Truths about long-term care to consider:Myth: My employees are not concerned about long-term care benefits.
Truth: 77% of Americans age 30 to 65 think they should know more about long-term care than they currently do.
Myth: Employees do not value this benefit as much as other benefits currently offered to them.
Truth: Employees today, especially if they are Baby Boomers, are vowing to do things differently after seeing their parents’ savings swallowed up by nursing home care, and/or experiencing the stress and financial burden of spouses or children serving as caregivers.
Myth: Medicare will pay for any long-term care needs during retirement.
Truth: Encourage your employees to look at Page 4 of their annual Social Security statement which reads, “Medicare does not pay for long-term care, so you may want to consider options for private insurance”.
Myth: The risk of a financial burden to an employee from benefits an employer currently offers (health, disability, life) supercedes long-term care risks.
Truth: 3 in 900 (.33%) = Odds a having a car accident
21 in 900 (2.3%) = Odds of being admitted to a critical care unit
630 in 900 (70%) = Odds of needing long-term care
Myth: Long-term care is primarily for nursing homes.
Truth: Long term care plans have evolved with much emphasis and greater benefits being placed on staying in your home (even paying family members as caretakers) vs. a nursing facility.
Myth: Long-term care benefits are too expensive.
Truth: Rates are based on age and health (the younger you are and if in good health) the lower the rates will be and why there are many advantages to consider during one’s working years. Also, there are group discounts available, even if offered on a voluntary basis. And, the Wisconsin Partnership Plan offers tax deductions to individuals and business owners who purchase long-term care insurance. The cost may be 100% tax deductible for business owners. Plus, one can purchase “limited pay” policiesso that insurance protection is paid-in-full prior to retirement age.
In the wake of the dissolving of the CLASS Act, however, an urgent question that may remain unanswered is “If not CLASS, then what?
Consider offering Long-Term Care Benefits to your employees. To find out more and explore some options, call me at 920-893-5262.
Insurance Advisor Coach
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