States Move to Fill Care-Coverage Gap as New Policies Offer Solutions
Recognizing that caring for a spouse or family member with a debilitating illness or injury can be costly, nearly 20 states are considering ways to make some form of long-term care (LTC) coverage mandatory.
Why States Are Taking Action
The numbers are staggering. The average cost in the United States for one month of nursing home care is $7,698. Annuities and traditional life or health insurance policies are not designed to cover LTC costs. The Alzheimer’s Association estimates the cost for care in the final five years of life at $367,000 for people with dementia and $234,000 for those without. While the duration and extent of long-term care varies per individual and can change over time it’s important to note that:
Average lifetime LTC costs are $172,000 per person (SHRM HR- Magazine).
The annual cost of care in a private room in a nursing home is $108,405 (Genworth 2022 Cost of Care Survey).
Women generally need care longer (3.7 years) vs. men (2.2 years).
Medicare pays for very little of skilled nursing home care.
The cost of benefits provided by an LTC policy often exceeds premium outlay.
Catastrophic medical claims continue to grow in size and number. What was a $1 million claim a few years ago is likely $3 million+ in today’s marketplace. As insurance has always been about managing risks, what can a company do to protect itself from such skyrocketing costs?
On Tuesday, May 16th, the IRS announced the inflation adjustments that will apply to Health Savings Accounts (HSAs) and qualified High Deductible Health Plans (HDHPs) beginning January 1, 2024.
Balancing costs and employee needs can at times feel like walking a tight rope. Using the P2RIME process, we’ll help you build a comprehensive employee benefits strategy that includes:
Tools to help you prepare and plan
Methods to recruit and retain top talent
Innovative solutions that enhance employee experience
Tactics to manage costs and risk
Continuous education of new strategies to engage your employees
In 2020, the Affordable Care Act (ACA) amended the Public Health Service Act (PHSA) to require non-grandfathered group health plans and insurers of fully-insured group health plans to cover a range of preventive health services free of member cost-sharing (such as a deductible, coinsurance, or copay) when provided on an in-network basis.
On April 28, 2023, the IRS Office of Chief Counsel issued Memorandum Number 202317020, which serves as “Chief Counsel Advice” concerning the requirement for health and dependent care flexible spending accounts (FSAs) to substantiate expenses.
At Graham Company, we understand that insurance is not something sold and put on a shelf. Through over 60 years of experience, we create programs that address our clients' specific business needs. We provide a full spectrum of products including Property & Casualty, Employee Benefits, Surety, Personal Lines, and more for an elite client base. We understand that for our clients, it's not just about protecting your livelihood - it's about protecting your legacy.
