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What every employer should know about LTC

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Generic Prospect Marketing

  1. 1. WHAT EVERY EMPLOYER SHOULD KNOW ABOUT LONG TERM CARE MORE THAN NURSING HOME CARE ONE IN THREE Americans receiving long term care $76,000 PER YEAR are working-age adults1 avg. nationwide cost2 HOME CARE LONG TERM CARE INSURANCE IS A VALUABLE BENEFIT INTEGRAL TO EMPLOYEE COMPENSATION $43,000 PER YEAR (depending upon care)3 WITHOUT LONG TERM CARE INSURANCE EXPENSES ARE FREQUENTLY FINANCIAL ADVANTAGES PAID OUT-OF-POCKET Tax advantages employers can use AN OUNCE OF PREVENTION AUTOMATION Among caregivers, 1 in 3 report losing about 16 4 Making enrollment easier than ever hours of work per month to provide care Only one employee benefit is specifically designed to cover long term care expenses. L O N G T E R M C A R E I N S U R A N C E 48527 05/01/09
  2. 2. I N T R O D U C T I O N Most likely, you know someone who has needed long term care. So, you probably know of the many difficulties an individual needing long term care faces, and the impact it has on everyone he or she knows. Numerous physical, financial and emotional challenges exist each day when care is needed. Fortunately, the ability to prepare for these challenges is made easier when an affordable solution is readily available. This is one reason why so many employers are now offering long term care insurance to their employees. With most of the implementation work handled by the insurer, adding group long term care insurance to the existing benefits programs makes good business sense, providing advantages to employers and their employees. LONG TERM CARE INSURANCE In The News “More than one-third of companies now “Buy through work. If you’re offered a offer long-term care insurance as a benefit ...” group policy at work, consider it; it might be your best bet.” “Experts suggest that people buy Forbes policies while in their 40s to mid-50s, mainly 2009 Retirement Guide “Making Your Money Last” because premiums rise with age, roughly The Long-Term Care Insurance Solution doubling every 10 years.” “Employer-based plans have mulitple “Purchasing Long-Term Care Insurance advantages...” The New York Times through the workplace is more attractive...” “Young workers must face realities of long-term care” “ can get a 5% to 10% discount October 23, 2008 compared with buying insurance on your own, plus you can keep the coverage if you retire or change jobs.” Kiplinger’s Personal Finance “Long-Term Care Insurance for Less” December, 2008
  3. 3. THE VALUE OF GROUP LONG TERM CARE INSURANCE Paying for care received at home, in the community, in nursing homes, and in assisted-living facilities is at the heart of LTC Insurance. But that is just the start. 1 in 5 For employees: For employers: workers provide LTC Insurance programs may also provide: LTC Insurance programs may also provide: some level of care to 5 family members. individualized plans for care a competitive edge aids such as grab rails and wheelchair ramps retention of valuable employees light house cleaning and meal preparation an attractive incentive in hiring employees training for caregivers reductions in productivity losses listings of care providers an easy implementation wellness programs an alternative to increasing salaries claim filing assistance increased morale automatic bill payment arrangements It’s no wonder LTC Insurance is receiving a lot 40% of people group rates, locked-in at younger ages receiving LTC are of attention from employers, employees, financial planners, health care practioners, and under age 65. 1 politicial leaders. 12 million Americans ELIGIBILITY Coverage can be made available to: are receiving All eligible participants receive the same Full-time employees Grandparents long term care.6 group rates, and couples discounts (when Part-time employees Sons & daughters selected). For employer-paid programs, the Spouses Brothers & sisters employer contribution is typically extended Domestic partners In-laws only to employees. Coverage is fully portable when employment (or membership) ends. Mothers & fathers Retirees Most programs do not require a minimum number of employees to enroll.
  4. 4. WHY PEOPLE BUY LONG TERM CARE INSURANCE To have choices To stay at home Nothing makes us feel more vulnerable than Most people prefer to stay in their own home losing control of basic choices. Having the ability or where they’re most comfortable. LTC to choose the type of care that best serves an Insurance helps provide for many different individual’s needs is just as important as having types of care and ser vices which enable Just 21/2 years can drain savings of the ability to pay for that care. LTC Insurance can individuals to stay in their own homes. $200,000 7 help provide that control. To protect savings and assets To protect family and friends No one puts away money in hopes of one day Family is usually the first place people turn for using it to pay for long term care. However, just care, comfort, and support. But in many cases, as there is the possibility of being hospitalized they are not professional caregivers. Weeks, or having a car accident, there is the possibility months or years of care, even with just basic of needing long term care. In fact, the odds are daily needs, places a large burden on a family´s much higher. Since LTC Insurance helps pay shoulders. LTC Insurance provides services so for care, it also helps protect hard-earned that family members can give support in more savings and assets. meaningful ways. $200 Nearly half of family caregiving members contribute this amount each month to help pay for care.8
  5. 5. WHY OTHERS WISHED THEY HAD To avoid relying on the government To be able to afford care Medicare – Before any assistance an be With the average length of a long term care given, a hospital stay of at least 3 days is condition lasting nearly three years, the costs required. Then, Medicare will cover only a can quickly add-up. Savings may pay for some 1/2 of family few weeks of skilled care in a skilled nursing expense, however these assets are probably home facility, and only a portion of expenses earmarked for other things. In addition, long caregivers juggle for the next few months. term care may be needed before enough full-time jobs.9 Medicaid – Intended for people without money has been accumulated. sufficient income or means to provide for themselves, Medicaid provides help only To avoid becoming a burden after most personal savings have been While family members may want to do all they depleted. It acts largely as a safety net when can to help, caring for a family member has there are no other options. many adverse financial and emotional Veteran’s Administration – The V.A. consequences, that may place a serious strain provides little in the way of long term care; on the family. what it does provide must be the result of a service-related injury. HOW is long term care To have insurance that covers expenses commonly 2 1/2 years paid for? 11 Many people are surprised to learn that their is the average length health insurance does not pay for long term of a long-term nursing Out-of-Pocket home care stay.10 care. Health insurance is designed to cover Other skilled and rehabilitative services only, not care for a long period of time. Long term care is also Medicaid Medicare not covered by other kinds of insurance, like Insurance disability insurance. Traditional alternatives to LTC Insurance are often unreliable, unobtainable or undesirable.
  6. 6. WHY EMPLOYERS OFFER LONG TERM CARE INSURANCE Retain valued employees by providing a more Gain competitive edge in attracting new comprehensive benefits package employees Minimize absenteeism and productivity losses As a substitute for increasing salaries due to employee’s caregiving responsibilities 30% Maintain positive morale and focus Reduce employee stress which can lead to of caregivers Receive potential tax advantages health problems miss 16 hours of work due to caregiving responsibilities each month.4 SIMPLE IMPLEMENTATION For employers, having a dedicated Account Manager is like having an extra employee in HR, Marketing, IT, and Operations. Account Managers play an indispensable role Detailed Program Management: in successful LTC benefit programs by ensuring One point of contact a smooth enrollment process. Expect the Creation of operation plans following from reputable carriers... Deployment of IT systems Billing systems and functionality A Customized Marketing Strategy: Quality assurance and reporting Preparation of enrollment materials and $34 billiion schedules in productivity losses Fast, Reliable Automation: Brochures, emails and literature creation due to caregiving Customized websites Customized message delivery responsibilities.12 Employee meetings Campaign and list management Effectiveness measures Rate calculations Billing and Payroll Policy Issue Online enrollment for employees and spouses
  7. 7. FINANCIAL ADVANTAGES For Employers For Employees C-Corporations – Premium contributions are Employer-paid premiums are not counted as 100% tax deductible as a business expense. taxable income. Employees who purchase 1/2 of women S-Corporations, Sole Proprietors, and LLCs – coverage can deduct the premiums they pay caregivers experience depression. 13 Premium contributions are deductible as a health as medical expenses, within limits under certain insurance premium expense. conditions. Benefits received by the insured are tax-free. Employers should consult with their qualified tax advisor for limitations and requirements. 2x Employees who care for individuals, who have LTC insurance, are twice as likely to SOURCES stay in their job. 14 1 U.S. Department of Health and Human Services. National Clearinghouse for Long Term Care Information.“Forty (40) percent of people currently receiving long-term care are adults 18 to 64 years old.” 10/22/2008. 2 Genworth Financial 2008 Cost of Care Survey conducted by CareScout for Genworth. (Exact amount: $76,460) April, 2008. 3 Long Term Care Cost Study, Research Report 2008 conducted by LifeCare for Prudential. (Home care National average for a home health aide/certified nursing assistant is $21 per hour. Home care figures assumes a 40 hours per week.) 07/08. 4 Consider Long Term Care Insurance Plans. Credit Union Magazine. March, 2003. 5 AARP Public Policy Institute, Research Report, In Brief: Valuing the Invaluable: A New Look at the Economic Value of Family Caregiving. June, 2007 6 A Workforce to Care for Our Aging. Genworth Financial. 04/29/2008. 7 Approximation based on $76,460 average annual cost of private-room nursing home care for average length of long-term nursing home stay of 21/2 years. 8 AARP Public Policy Institute. Long Term Care Research Report. October, 2007. 9 Caregiving in the U.S. National Alliance for Caregiving and AARP funded by MetLife Foundation. April, 2004. , 10 Centers for Disease Control and Prevention,National Center for Health Statistics. The National Nursing Home Survey. 1999. 11 National Spending for Long Term Care, by Payer [in] 2005. H. Komisar and L. Thompson, National Spending for Long Term Care (Washington, DC: Georgetown University Long Term Care Financing Project, February 2006). Long Term Care Financing: Policy Options for the Furtue, June 2007. 12 Center for American Progress, Long Term Care by the Numbers, 2008. 13 Prevalence of Depression in Family Caregivers. Gallagher, D. Rose, J., Rivera, P Lovett, S., & Thompson, L. The Gerontologist. Vol. 29. 1989. ., 14 The MetLife Study of Employed Caregivers: Does Long Term Care Insurance Make a Difference? Findings from a National Study by the National Alliance for Caregiving and LifePlans, Inc. MetLife Mature Market Institute. March, 2001.
  8. 8. Are your employees ready for the challenges of long term care? The likelihood of needing long term care may be one of your employees’ greatest uninsured risks. You can make a positive difference in the way employees handle a long term care event. And, offering long term care insurance not only helps your employees, it can help you to grow and protect your business. Only one employee benefit is specifically designed to cover long term care expenses. L O N G T E R M C A R E I N S U R A N C E