Dana Vutera & Associates - Employee Benefits Plans, Group Health Insurance, FFS, PPO

Employee Benefits Plans

Employers today are on the verge of an age wave of increased costs as baby boomer employees begin caring for aging family members. As employees become caregivers in the workplace Employers will face increased costs due to employee absenteeism and decreased productivity.

Our coming reality is:

$29 Billion is the projected U.S. employer cost for lost productivity and absenteeism due to employee care giving in the workplace
18 years is the amount of time the average baby boomer will spend caring for aging parents, more time than raising a child
1 out of 2 people will need Long Term Care before death
2.5 years is average stay today in a Nursing Facility
$34,200 is the average cost for a one year stay in a Louisiana Nursing Facility
Employees who care for elderly or sick relatives with Long Term Care Insurance are twice as likely to stay in the workforce
Long Term Care Insurance: Helps protect your investment in your employees
Helps reduce employee stress, absence from work and turnover
Enhances existing benefits package
Protects and improves productivity and morale by helping employees meet their caregiving responsibilities.
Available to spouses and extended family members
Flexible Benefit Plans
Voluntary Plans
Employer-Paid Plans
Executive Carve-Outs

It costs employers an estimated $3142 per year for each employee that assumes the roll of primary caregiver for a spouse or loved one.

The effect is more than just financial. Every time an employee misses work someone else must take up the slack. It affects morale, productivity and places a heavy strain on your entire operational system.

Elder care will replace child care as the number one dependent care need in the coming century, as 1 out of 3 working adults will be caring for an aging family member.

University of California at Berkeley Study, Quotes USA Today 7-14-94)

What percentage of your workforce is between the ages of 18-64?

Many people believe long-term care is only a problem for the elderly. The possibility of one of your employees needing care is higher than most people think! A long-term care need has the potential of effecting every employee in your company.

40% of the people who require long-term care are between the ages of 18-64.

(Employee Benefit Review, October 1995, Committee on Aging, US Senate)

How would it effect your company if you lost 18% of your current workforce?

70% of all caregivers are between the ages of 36-64 and almost 50% of them are employed. 18% of employed caregivers quit their jobs to provide care.

There are 25 million caregivers in the United States.

84% are females
74% are married
34% are between the ages of 36-50 and 36% are between the ages of 51-64
47% are employed
18% quit their job
58% show clinically depressive symptoms

Tax Advantages

Premiums for qualified long-term care policies purchased on behalf of employees, their spouses and dependents and retirees and their spouses are all generally deductible by the employer. In addition, an employer's contributions toward the cost of premiums is not considered income for the employee.
If an employer shares the cost, the company can deduct its portion of the contribution.

The information on this site is based on the current interpretations of the tax law. Changes in the tax law may effect the information. I to I Solutions and its representatives do not provide legal or tax advice, and the information provided here should NOT be considered as tax advice.

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Employee Benefits Plans