| University launches long-term care insurance benefit BY MATT GETTY During an open-enrollment period that ends Feb. 28, full-time faculty and staff and their family members can now elect a personalized long-term care insurance plan at reduced group rates through the university. Launched in response to employee requests, the new benefit, which will become effective Apr. 1, offers coverage for basic daily care for the elderly or incapacitated at home by a family member or health-care worker, or through an adult day care, assisted living, or nursing home facility. Currently, The New England Journal of Medicine estimates that nearly half of everyone over 65 will need long-term help performing such essential daily functions as bathing, dressing, and eating at some point in their life. Because basic health insurance and Medicare only cover a small fraction of the cost of such care and Medicaid provides assistance only once a patient falls below the poverty level, many increasingly view long-term care insurance as the only option to protect against future financial disaster. “The decision to offer this new benefit was driven by our customers,” explained Sarah Bayne, AU’s director of employee benefits and communication. “With reports of monthly bills in the thousands for in-home or nursing-home care, people are looking at long-term care insurance as a way to keep from draining their life savings or taking a second mortgage out on their home to cover these kinds of costs.” While some other employers offer a single long-term care insurance plan, AU’s benefit allows for fully customizable plans. Employees who feel they may need more coverage can opt to make larger monthly contributions for larger future cash reimbursements, while employees who feel that they may need less coverage can opt for plans that cost less per month. The Todd Benefits Group, who is the broker for the new benefit, also offers three “EZ pick” plans that vary according to age, marital status, and state. “The plan offers a lot of the same choice as an independent plan, but also carries the benefits of group buying power—reduced cost and reduced underwriting,” explained Bayne. Being able to enter into the plan with “reduced underwriting” means that employees between 18 and 65 who opt in before the end of the open-enrollment period can do so without a full health screening. Instead, they need merely to answer a few questions that assess whether they currently or may soon require basic living care. After the initial open-enrollment period, existing employees entering the program will need to undergo a full health screening. While most people think of long-term care insurance as only for the elderly, the package also covers expenses for nonelderly patients who are incapacitated through an accident for a period of more than 90 days. Younger employees might also choose the benefit to cover future expenses for a parent or grandparent, or to begin coverage for themselves at an age when their premiums will be lower. Still, Bayne cautioned, the increasingly popular insurance may not be right for everyone. “It’s a very personal decision,” she explained, citing family situations, personal wealth, and age as just a few of the factors impacting an individual’s decision. To help employees make that decision, Human Resources will hold several information sessions on the new benefit in the Mary Graydon Center, room 5, on Tuesday, Feb. 8, at 10:00 a.m., noon, 3:00 p.m., and 5:30 p.m.; and on Wednesday, Feb. 9, at 10:00 a.m. and noon. Additionally, any faculty and staff considering long-term care insurance can read the Human Resources’ memo
on the subject at domino.american.edu/AU/eNews/eNews.nsf/012505hr?OpenPage or browse a list of “frequently asked questions” at domino.american.edu/AU/eNews/eNews.nsf/012505faq?OpenPage. |
