A Benefit to Help Firms and Their Employees
As technological advances are made in medicine and as more people begin adopting healthier lifestyles,people are living longer than ever before. This longer life expectancy increases the likelihood that long-term care, such as home health care, stays in assisted living facilities, or more intensive and ongoing care in a nursing home could be required. Today, long-term care planning is a critical piece of a personal risk
management strategy. Without it, accumulated wealth may be jeopardized, since only a very small percentage of extended health care expenses are covered by Medicare, major medical, or disability insurance. With this significant risk of incurring a substantial financial burden, employees, including executives, should consider protecting themselves.
Why offer Long-Term Care as an Employer Voluntary Benefit?
A Voluntary Long-Term Care benefit offering allows an employer to reduce the impact on workplace productivity, while providing personal risk planningoptions for employees.
LTCi offers a very practical tool for solving the challenges posed by this issue for employees, executives and their benefit brokers. For more information please contact MS Consulting Group for a complimentary consultation.
The CLASS act stands for Community Living Assistance Services and Support Act, and is Title VIII of the Health Care Reform Bill. It is a legacy of the late Senator Ted Kennedy.
The plan creates a voluntary government run long-term care insurance program and is effective January 1, 2011. However, the Department of Health and Human Services has until October 1, 2012 to design the plan, and it is not anticipated to be ready until 2013.
1 Prudential, “Study of Employee Benefits”, 11/2009
2 Genworth, “The True Impact of Long-Term Caring”, 9/30/10
Politico (9/16, Kenen) says, “A new report adds fresh details to the conventional wisdom that a new long-term care insurance program is fiscally out of whack — but there’s also widespread agreement among experts that there are lots of ways to try to fix it.” The data, released by congressional Republicans, “lambasted” the Community Living Assistance Support and Stability (CLASS) “program as a boondoggle that Democrats rammed through Congress during health reform while knowing full well it would be a…
In a column in the Fort Worth Star Telegram (9/16), Teresa Mcusic writes Texas “is having a tough time” on enrolling people in its three year old “long-term care insurance partnership program that help buyers protect assets if they need to apply for Medicaid,” with only 10,443 partnership policies sold through the end of last year. “Texans are not generally buying policies with this benefit in mind.” At issue can be the premium costs, which “aren’t cheap,” or “finding…
AdvisorOne – http://www.advisorone.com/2011/09/15/health-care-laws-ltc-program-unsustainable-republi
San Francisco Bay Area – http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/09/15/EDQD1L44TR.DTL
Forbes – http://www.forbes.com/sites/howardgleckman/2011/09/16/the-phony-class-act-scandal/