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Employers and Long-term Care Insurance

Long-term care may well be the greatest uninsured need in America. Most people will need some type of long-term care services at some point, so Long Term Care Partnership insurance can be an important option to help pay for the costs. It can also be an important benefit for employers to consider.

Today employers have a wider variety of long-term care insurance options. There are traditional group products (true group) and individual products (worksite or multi-life products) offered by employers. Individual products often provide additional discounts, such as a good health or spousal discount, which is not typical of a true group policy and may also provide more customizable plan options.

Some employers offer long-term care insurance as a voluntary benefit, while other employers provide some type of subsidy. These options may include an employer contribution toward the premium payment or offering a low-cost base policy, with employees being able to buy additional coverage.

Successful Campaign

The State of Minnesota had one of the most successful employer-offered long-term care insurance outreach campaigns in the entire United States. In 2000, the State of Minnesota achieved a 20 percent participation rate in its offering of long-term care insurance to state employees. This was due in large part to the campaign that highlighted the state tax credit for those who buy tax-qualified long-term care insurance, and information that other sources such as Medicare do not pay for long-term care.

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