Corporate America’s Role in the Long-Term Care Crisis: Why Employers Should Consider Adding Group Long-Term Care Insurance
As the U.S. population ages, the need for long-term care insurance is becoming increasingly urgent. Spurred on by recent legislation developments in states like Washington, California, and Pennsylvania (just to name a few) employers are becoming more aware of the need to take proactive steps to support their workforce and prepare for the future. One strategic move is to add Long-Term Care insurance (LTCi) as an employer-sponsored benefit. While currently about 25% of employers offer Long-Term Care insurance, recent survey data from Buck shows that 66% of employers plan to do something with respect to Long-Term Care and will look at it in the coming year.
Because the majority of Americans are unaware of the financial risks associated with not having LTCi, its introduction should be accompanied by a robust and thoughtful education campaign to help employees understand its purpose and function. The benefits of doing so are twofold: employees can better protect themselves and their families from financial exposure, and employers can increase the value and competitiveness of their benefits package as a whole. Keep reading to explore why employers should consider integrating LTCi into their benefits package, and the advantages it brings to both employees and the organization.
What’s Behind the Long-Term Care Crisis?
- The long-term care crisis is fueled by the aging U.S. population, increased life expectancy, and rising healthcare costs.
- As individuals live longer, the likelihood of requiring long-term care services, such as assisted living, nursing homes, or in-home care, also rises. It’s estimated that 70% of people aged 65 today will require long-term care of some kind during their lifetime.
- Long-term care services are expensive and generally not covered by traditional health plans. Plus, most Americans don’t have enough savings to cover the costs. Individuals and their families are left grappling with the financial burden of long-term care.
Why Should My Company Start Planning to Introduce Long-Term Care Insurance?
- Attract and Retain Top Talent: Offering Long-Term Care insurance (LTCi) as a group benefit can be a powerful recruitment and retention tool. In a competitive job market, employees are increasingly considering the comprehensiveness of benefits packages when choosing an employer, (this is especially true for more senior-level positions). Including LTCi in the lineup of benefits demonstrates a commitment to the future financial health of employees and their families, making the company more attractive to potential hires and fostering goodwill among current staff.
- Enhance Employee Wellbeing and Performance: Addressing the long-term care crisis goes beyond financial considerations; it also has a significant impact on employee wellbeing. Knowing that they have access to long-term care coverage can alleviate stress for employees, allowing them to focus on their work responsibilities thanks to a greater sense of security. According to the National Association of Personal Financial Advisors, nearly seven in 10 working adults report that they would perform better at work if their employer offered more financial wellness benefits.
- Mitigate Financial Risks: The financial implications of long-term care can be staggering. Without proper coverage, employees may be forced to deplete their savings or rely on their families for support. This can lead to increased stress, absenteeism, and decreased productivity. By providing a way to secure affordable LTCi coverage, employers help safeguard their workforce against the financial risks associated with long-term care, promoting financial security and peace of mind.
- Stay Ahead of Potential Legislation: As the U.S. grapples with the growing long-term care crisis, there is a possibility of additional legislation requiring employers to provide LTC coverage. By taking proactive measures and incorporating LTCi coverage into their benefits offerings ahead of potential mandates, employers position themselves as forward-thinking and socially responsible organizations. This not only avoids potential legal compliance issues but also sets a positive precedent for corporate responsibility.
How Are Other Employers Introducing Long-Term Care Insurance?
Perhaps the most challenging aspect of offering Long-Term Care Insurance (LTCi) for the first time is helping employees understand and appreciate what this new offering means for their future health and financial outlook. So, let’s look at what it takes to successfully roll out LTCi to a workforce for the first time.
- A Special-Purpose Enrollment Approach: Introducing LTCi during a one-off enrollment period outside of the annual open enrollment window streamlines the process for both employers and employees. This focused approach allows organizations to present this valuable benefit clearly and concisely, avoiding overwhelming employees with too many decisions. A dedicated enrollment period should strongly encourage active participation, ensuring that employees carefully consider their long-term care needs and make informed decisions about their coverage.
- Dedicated Support for Informed Decision-Making: Understanding the intricacies of long-term care insurance can be challenging for many employees. Providing dedicated support through educational sessions, workshops, or informational materials is key to helping employees make informed decisions about their coverage. Employers can collaborate with insurance providers to offer personalized consultations, ensuring that employees grasp the nuances of the policies available and choose options that align with their unique needs. Larger organizations can benefit from partnering with an enrollment firm that specializes in benefits education (not sales) and whose enrollment specialists have demonstrated knowledge of various LTCi plans and programs.
The long-term care crisis is a pressing issue that demands proactive solutions. Employers are uniquely positioned to attack this issue on a large scale through their strategic benefits offering. Adding Long-Term Care Insurance as a group benefit not only aligns with the evolving landscape of employee benefits but also positions organizations as leaders in addressing the needs of their workforce – and our nation. By taking action now, employers can attract and retain top talent, mitigate financial risks, enhance employee wellness, and stay ahead of potential legislative requirements. Furthermore, offering personalized support during the enrollment process serves to bolster employees’ sense of financial security and confidence in their LTC preparedness. Through these coordinated efforts, employers can not only protect their employees but also contribute to a more secure and resilient workforce that’s ready for what the future may hold.
ABOUT THE ORIENTATION COMPANY
At The Orientation Company, we partner with clients nationwide to provide full-service HR/benefit solutions that make their culture shine. Leveraging our decades of industry experience and a “people over everything” mentality, we help companies achieve excellence around new hire onboarding, long-term care insurance and other special-purpose enrollments, annual enrollment, employee service, and communications. Ultimately, we exist to help our clients maximize their return on investment in benefits while improving their employees’ lives.
