Long-term care is a benefit that is not included in most insurance plans since it is not an essential benefit under new health care law, whether you call it Obamacare or the PPACA. Likewise, long-term care is not part of the health benefit exchanges offered by states. This being the case, providing long-term care insurance to employees is a great way to stand out from other businesses and attract the best employees in your industry. Unfortunately, many businesses continue to exclude long-term care from their group benefit offerings despite the obvious advantages.
Due to rising healthcare costs and an aging workforce, long-term care insurance (LTCI) and retirement are becoming more of a focus for today’s workers. Not only is the future of Social Security in question, but so too is the ability to pay for necessary medical expenses using retirement savings as employees age. Planning for retirement, and the inevitable health concerns that come along with it, is emerging as an important factor in maintaining quality of life well into the golden years.
Like with most employer-sponsored benefits, there are tax incentives designed to encourage businesses to offer long-term care insurance to employees. For the most part, these tax breaks are available when an employer pays for a portion of the premium, of which 100% is deductible (for employees and dependents). The amount paid toward premiums for LTCI plans are tax deductible for both employers and employees.
To learn more about the tax advantages of group long-term care insurance, visit this resource from Investopedia. Information included covers the benefits of group LTCI plans for both employees and employers.
For employees, one of the big advantages of an employer-sponsored long-term care insurance plan is that it is significantly cheaper than an individual plan (as with most group plans). Since the premium is based on the group as a whole, and not each employee individually, the overall cost per person is reduced to a much more manageable price.
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