by MMA Voluntary Benefits Practise Leader, Krystie Dascoli
Recently there has been a lot of attention on long-term care, and for good reason. A large portion of caregiving is landing on the backs of employees, and as the costs associated with eldercare increases, and Medicare budgets are further strained, state governments are looking for new ways to address the looming problem.
Washington State was the first to enact a long-term care payroll tax, there are 13 additional states evaluating a compulsory program, including California, which is expected to be effective in 2025. Public awareness is now at an all-time high, and with employees turning to their employers for a solution, many organizations are actively review the marketplace.
While Washington offered an opt-out period, many employers were caught off guard and by the time they started the process, found that the many carriers and enrollment firms were already at capacity. This left many employers without options for their employees, which meant these employees couldn’t opt out of the state plan.
The reality is, employers need to prepare now, or risk being left behind. By putting a long-term care solution in place now ensures that you will have full access to the market, better underwriting and can take the appropriate time to communicate options to your employees.
View our flip book to learn more about the current state of the long-term care market and why these changes matter.