Senior Care Concepts

Innovative ways to insure your independent lifestyle

Printer Friendly Version

Many American workers are juggling a 40-hour work week with their ongoing responsibilities of taking care of an elderly friend or relative. According to a 1997 survey conducted by the National Alliance of Caregiving and AARP, nearly one-quarter of U.S. households (22.4 million) contain a family caregiver for someone over 50 years old. Two-thirds of these caregivers work full or part time, and over half said that they have to make changes in their work schedule.

What impact does Long-Term Care have on the business owner? According to a 1997 MetLife Study of Employer Costs for Working Caregivers estimated that caregivers cost employers between 11.4 and 29 billion dollars per year. This equates to approximately $1,100 per year per employee. Click here for a copy of the MetLife Employer Costs Study

What are the reasons for these losses for the employer? Here are some for the visible factors that can create costs for the employer such as:

Employee replacement costs Absenteeism costs Cost due do to partial absenteeism Cost of workday interruptions Cost due to eldercare crisis Cost associated with employed caregivers

What are some of the hidden cost that an employer may not see?  When an employee is taking care of an elderly loved one their responsibilities may cause distraction during working hours like:

What is the cost to your employee? When an employee takes on the responsibility of taking care of a loved one they lose more than just the time it takes to provide care. They may lose:

• Income and possible wealth accumulation

• Opportunities to advance within the company

• Their own savings used to pay for their loved one's care

What is the cost to over a lifetime of caregiving? In a 1999 Metlife Juggling Act Study, a "career" caregiver can expect an average loss of $ 656,000 in lost wages, pensions and Social Security benefits. Click here for a copy of the MetLife Juggling Act Study.

Why should an employer offer long-term care insurance to their employees? Long-term care insurance is one of the newest and hottest benefits available in the group market. Here are some of the reasons that a company should:

• 55% - 70% surveyed see LTC insurance as an integral part of retirement planning

• 40% of people needing long-term care are under the age of 65

• Long-term care insurance protects the standard of living and accessibility of coverage

• The cost of long-term care insurance is more affordable at younger ages

What is the cost of long-term care insurance to the employer? There are very little cost associated with offering long-term care insurance as a benefit. Most employers offer long-term care on a voluntary basis with no cost to the employer. However, some employers may want to "carve out" a certain population in order to provide a most valuable employee benefit. See Tax Deductibility of Long-Term Care for rules on deductibility of premiums  paid by an employer.

Why do you want to expand the benefit to family members? This will allow the employee to purchase coverage for a family member that may need care in the future. Many employed caregivers are balancing work, family and their duties as a caregiver. In turn, the employee will be most grateful that the company is concerned about the well-being of their loved one. Miles Away: A Metlife  study of the Long distance Caregiver will help you understand the struggles of some caregivers. How can I learn more about long-term care as an employee benefit? If you would like more information about long-term care insurance and companies that offer Group Sponsored Long-Term Care programs, please contact us or e-mail us.

Senior Care Concepts, 2008