MetLife predicts rising participation in long-term care (LTC) insurance
plans will be a major employee benefits trend for U.S. companies this
year. In MetLife''s annual study on employee benefits trends, 37% of
employers surveyed currently offer LTC insurance or plan to add it by
early 2004.
- Demand for formal long-term care needs (i.e., nursing homes) is
expected to rise. As the pool of available informal caregivers (i.e.
family members or friends) shrinks due to a growing number of women in
the workforce, the need for LTC insurance will grow significantly.
- The employer market will grow rapidly. The employer-sponsored
LTC market has experienced an average 35 % annual growth rate. Over one
million policies have been sold in the employer-sponsored market as of
1999. In addition, The Federal Long-Term Care Insurance Plan is the
largest employer sponsored long-term care program with the potential to
reach 20 million people.
- Employer-sponsored LTC policies will offer additional benefit
options, such as expanded daily benefit amounts and lifetime coverage.
- More LTC insurance policies will be sold to consumers as part of
their overall financial plan.
As many LTC health professionals enter retirement, the current
shortage will become more severe. In the meantime, health
paraprofessionals (personal and home health occupation) are predicted to
experience an 84.7% growth by 2006.
Studies by the Health Insurance Association of America (HIAA)
have shown that enhanced tax incentives would prompt more interest in
the purchase of LTC insurance.
Inflation protection clauses will become more prevalent. The
Health Insurance Portability and Accountability Act of 1996 (HIPAA)
stipulates that inflation protection must be offered as a standard part
of an LTC insurance policy, or as an option, to qualify for preferential
tax treatment.
Companies that already offer LTC insurance expect significant increases
in employee enrollment, notes Joyce Ruddock, vice president of MetLife''s
Long-Term Care Group. Reasons include the growing number of
near-retirement age Baby Boomers in the workforce, an increase in the
number of working caregivers, and the rising cost of nursing home care -
which currently averages between $50,000 and $60,000 annually.
The HR industry´s premier online community and resource for Human Resource professionals: HR, human resources, HR community, human resources community, HR best practices, best practices in human resources, online communities for HR, HR articles, HR news, human resources articles, human resources news, HR events, leadership, performance management, staffing and recruitment, benefits, compensation, staffing, recruitment, workforce acquisition, human capital management, HR management, human resources management, HR metrics and measurement, organizational development, executive coaching, HR law, employment law, labor relations, hiring employees, HR outsourcing, human resources outsourcing, training and development
hr.com.
human resources management resources for hr professionals. |
HR menus
|
HR events
|
HR Sitemap