Company Size and Long Term Care Coverage

The majority (58%) of the largest U.S. employers have embraced long term care insurance as an employee benefit.

The inclusion of long term care insurance (LTCI) in benefit plans has accelerated astoundingly in the last 15 years, as explained in a March 2013 report released by the SCAN foundation. Size of the Employer and Self-Employed Markets Without Access to Long-Term Care Coverage Options reports that, among employer groups of 500-999, 27% offered long term care coverage in 2010 vs. only 9% in 1998.  Among the largest employers, those with 20,000+ employees, fully 58% offered long term care insurance, up from only 13% in 1998.

Smaller employers are lagging behind this trend.  Only 5% of businesses with less than 100 employees offer LTCI.  In companies with 100 or more employees, the rate is four times that of smaller businesses, or 20%.

The report estimates that approximately 28 million employees now have access to employer-sponsored long-term care coverage.  This represents approximately 20% of the total workforce.

However, access to LTCI isn’t the same as actually having purchased a policy.  If 20% of the total workforce has access to employer-sponsored LTCI coverage, that means that substantially less have actually purchased coverage.

Small businesses owners and self-employed individuals have jumped on the LTCI bandwagon. About 17 percent of the nation’s approximately 16 million self-employed individuals in the U.S. have long-term care coverage.  This adoption rate is close to the rate of small business owner coverage (20%).

As the SCAN report says:

Roughly one-in-five companies with at least 10 employees offers long-term care coverage to their employees.

Get a big-company benefit for a company of any size.  Contact me to get the facts on what a plan would look like for YOUR Company.