 Providing long-term care for elderly or
disabled family members will surpass childcare in the next century as the top dependent
care issue for workers, and 1 in 3 workers will be affected. (USA Today, 7/94)
In most cases, health insurance and Medicare will not help
financially, forcing those workers to use their own money, lose their savings and
retirement funds. While they struggle to keep their jobs and be caregivers, these workers
will experience stress, absenteeism, tardiness, distraction, perhaps even have to give up
their jobs.
What does this mean for employers? Loss of productivity,
employees quitting their jobs, retraining and replacement costs. Currently, this adds up
to over $30 billion per year to American businesses. (MetLife Survey, 1997) As the
population ages overall, this figure will only increase.
Long-term care is the assistance provided to a person who
has a condition, illness or cognitive impairment that limits his or her ability to perform
the normal day-to-day activities of living (such as bathing, dressing, or getting up from
a bed or chair). Long-term care may also include some medical care for illnesses or
conditions not severe enough to require hospitalization. This type of medical care can
include services such as rehabilitation therapy, changing bandages, or monitoring IV
medication.
Long-term care differs from acute care or typical health
services in the following general ways:
- Long-term care deals with chronic conditions or longer
recovery illnesses, as opposed to acute conditions.
- Long-term care is focused on providing assistance with
day-to-day activities (custodial care) rather than providing services focused solely on
the illness or condition.
- Long-term care is typically provided outside of a hospital
setting.
Thanks in part to advances in modern medicine, most of us
can expect to live far longer than people who did two or three generations ago. In many
cases, however, we will outlive our ability to take care of ourselves.
The need for long-term care, whether provided in a nursing
facility or at home, is increasing as the average age of Americans increases. It is need
that any of us could fact at any time.
Consider these statistics:
- About 50% of the population can expect to need nursing home
care at some time during their lives.
- In the case of a couple, if both partners live to be age 65,
the chances are 70% that at least one of them will require care (at least temporarily) in
a nursing home.
- Being young is no exemption from the need for long-term
care. At any moment, 40% of America’s nursing home residents are under 65. The
reasons for their confinements include accidents, strokes, heart attaches and crippling
diseases such as multiple sclerosis.
As the age of the average American increases, the need for
long-term care increases as well. At the same time the trend is towards a reduction in the
number of family members who can provide this care at home. With more and more two income
households, there is often no one at home during the day to care for a family member.
Wherever and however it is provided, long-term care can be
expensive. The cost of nursing home care ranges from $50,000 to $105,000 per year.
Many people expect that Medicare, Medicaid or a group
health plan will cover the cost of long-term care. They don’t realize that Medicare
pays only a limited benefit, only under certain conditions, and only for care provided at
certain facilities. People are often surprised to learn that, in total, Medicare pays only
about 5% of the nation’s annual nursing home bill.
As for Medicaid and group plans...Medicaid does pay more
than Medicare, but most people would rather not spend down to the poverty level to receive
this “benefit.” The majority of group health plans are designed to cover most of
the treatment for specific medical conditions, but not the cost of assistance with
everyday activities.
FOR INDIVIDUALS:
Deductible as personal medical expenses for those individuals who itemize their
deductions
FOR SELF EMPLOYED:
Currently up to 60% deductibility
FOR S-CORPORATION:
Currently up to 60% deductibility for owner or partner.
FOR C-CORPORATION:
Full 100% deductible if purchased for owners or employer.
Please see your tax advisor for information
that may affect your situation.
- Minimum of 2 employees
- Liberalized underwriting for 25+ employee worksite
- Modified guaranteed issue program available
- Tax Qualified
- 0, 15, 30, 60, 90, 100 or 180 day Elimination Periods
- 2, 3, 4, 5, 6, 10, or unlimited Benefit Periods
- CPI Inflation Rider at no initial cost
- Simple and Compound Benefit Increase Rider
- Executive “Carve-Outs”
- 10% Couples Discount available
- 25% Couples Discount available, of both purchase
- Flexibility in choosing benefits
- Coverage available to Employees, Retirees, Spouses, Parents,
Grandparents, Sisters, Brothers, Uncles and Aunts
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