Long Term Care Insurance
Paige
153 Posts
Last week I submitted a post asking about LTD. What about Long Term Care Insurance? What things should we look at when reviewing LTC policies? What's standard? What's high-end? Anything to look out for in contract provisions?
Thanks, again, for your help!
Paige
Thanks, again, for your help!
Paige
Comments
I'll send your post to one of the editors of the Benefits and Compensation Law Alert that we publish and let you know what I find out.
Anne Williams
Attorney Editor
M. Lee Smith Publishers, LLC
>Compensation Law Alert that we publish and let you know what I find
>out.
Thanks, Anne!
Much appreciated.
Paige
[url]http://www.hiaa.org/research/research_studies.cfm#longtermcare[/url]
Even though these policies are "group health plans" under the regulations, they cannot be offered under a cafeteria plan -- meaning that employee-paid premiums cannot be pretax. However, if the employer pays the premiums, it is excludable from income by the employee. (Note: There appears to be some ambiguity in the law regarding the duty to withhold taxes from these premiums, even though they are excludable by the employee. You should get specific advice on this point if you set up an employer-paid group policy.)
Finally, I think there may be a substantial savings in selecting a group-type policy as opposed to allowing an insurance company to offer individual polices to your employees.
I hope this helps.
Scott