As the long-term care landscape in the United States evolves, employers and brokers face the impending challenge of adapting to state-run long-term care programs funded by payroll taxes. The Voluntary Benefits Shop, led by President Mike Walker, is at the forefront of addressing this crisis. As discussed in one of our recent webinars, this blog post aims to encapsulate the key insights and tools needed to stay ahead of the curve.
The Emerging Long-Term Care Crisis
According to the American Association for Long-Term Care Insurance, about 7.5 million Americans have long-term care insurance. Yet, 70% of Americans over 65 will eventually require long-term care services. The median annual cost for a private room in a nursing home exceeded $100,000 in 2020 (Genworth Financial). This gap between need and preparation underlines the urgency of the situation.
State-Run Long-Term Care Programs
States like Washington have initiated payroll tax-funded, state-run long-term care programs. The primary goal is to alleviate the financial strain on Medicaid systems. However, these programs, including Washington’s, offer limited benefits and need more flexibility, especially for those moving out of state. This development has sparked discussions in other states like Pennsylvania, New York, Minnesota, California, and Colorado, with each state considering unique approaches.
The Role of Private Insurance
Private insurance, especially life insurance with long-term care, emerges as a crucial tool in the face of state-run programs. These hybrid products offer comprehensive coverage, including death benefits, terminal illness benefits, and long-term care benefits, often with guaranteed acceptance and level premiums.
Case Study: A Financial Services Firm
A compelling case study in our webinar highlighted our work with a 400-employee financial services firm. We secured a remarkable underwriting offer, allowing employees to access $300,000 worth of long-term care coverage without health questions. The result was significant—about 80 employees enrolled and generated an annual premium of $220,000, illustrating the effectiveness of these solutions.
Educational Approach and Enrollment Process
Effective communication and education are essential. Our approach involves a multi-channel strategy, including emails, video clips, webinars, and personalized consultations. This comprehensive education ensures that employees are well-informed about their options and benefits.
Conclusion
As long-term care reform sweeps the nation, staying informed and proactive is crucial. The Voluntary Benefits Shop is dedicated to equipping brokers and employers with the knowledge and tools necessary to navigate these changes. By understanding the nuances of state-run programs and leveraging private insurance solutions, we can collectively address the long-term care crisis effectively.
For more insights on navigating the long-term care landscape or exploring tailored insurance solutions for your organization, reach out to The Voluntary Benefit Shop. We are here to guide and support you in this evolving journey of employee benefits.