Long-Term Care Coverage

What is Long-Term Care Coverage?

Long-term care coverage is designed to meet health or personal needs when you are unable to care for yourself due to chronic illness, injury, or the effects of aging. Services can be provided in different places, including your home, a nursing care facility such as a nursing home, or a community-based facility like an adult daycare center. Long-term care coverage isn’t a replacement for healthcare. Instead, it provides care coverage if you cannot perform activities of daily living like bathing, dressing and using the bathroom.

Legislative Impact on Long-Term Care in the U.S

Increasing demand and rising costs of long-term care have many states considering adding a payroll tax to fund public programs to ease the strain of Medicaid. Washington State was the first state to implement a tax; many other states are considering it. Organizations with employees in these states have two options: collect taxes or offer a long-term care solution that directly benefits employees and may provide an exemption from the payroll tax.

Aon’s long-term care task force is closely monitoring state legislation nationwide and can help organizations put a plan in place proactively to protect their employees.

The Benefits of Long-Term Care For Employees

Long-term care coverage can provide significant benefits for employees enhancing their overall wellbeing and financial security by offering:

• Financial Protection: Helps cover the high costs of long-term care services, protecting employee’s savings and assets.
• Peace of mind: Knowledge that they have care coverage for potential long-term care needs - reducing anxiety and stress about the future and allowing employees to focus more on their work and personal lives.

Long-Term Care Coverage Options

The Benefits of Permanent Life with Long-Term Care

Permanent Life with Long-term care is a unique benefit that allows the use of a portion of the benefit coverage to pay for assisted living, home care, nursing or other long-term care if needed, and beneficiaries can receive a lump sum payout for final expenses or the remaining portion of the benefit if used for long-term care.

• Valuable benefit that supports employee's financial wellbeing
• Employee peace of mind knowing they have a benefit that will pay for long-term care when they need it and a death benefit for later in life
• Bolsters employee attraction and retention
• Solution to potentially opt-out of state LTC payroll tax if implemented

Selecting the right long-term care coverage to offer your employees is only half the battle. Ensuring your employees understand the benefits and select the right coverage for their specific needs is vital to success. Aon can also provide a comprehensive education, engagement, and enrollment strategy to deliver on your benefits.

How Aon Can Help

Benefit Consulting

Our team of legal consultants help employers stay informed about proposed legislation and how it may impact their employees and discuss valuable coverage options.

Education

Help employees understand the impact of long-term care legislation and the benefits of long-term care coverage with multi-media education campaigns, on-demand webinars and one-to-one conversations with a certified benefit counselor.

Technology

Aon provides enrollment platform flexibility: third-party platform, Aon’s U2X platform or Aon’s Everyday platform.

Enrollment

Certified benefit counselor support can be provided virtually and through the enrollment center.

By including long-term care coverage as part of your company benefits, you will demonstrate your commitment to employee long-term wellbeing and financial security - fostering a more engaged and dedicated workforce.