Contractors Choice – Workplace

Contractors Choice – Workplacesm

Long Term Care Planning for Employers and Their Employees

The Issue

Long Term Care significantly impacts today’s workplaces. While some employees need the care themselves (40% of those receiving LTC are between ages 18-64), the main impact of LTC on the workplace comes from employees’ having to juggle work and caregiving responsibilities.

Statistics tell the story -specific ways caregiver issues impact operations and productivity and the high costs to both employee and employer.

  • 1 in 6 workers today report that they assist with the care of an elderly or disabled family member, relative or friend.1
  • Nearly 92% of working caregivers with intense caregiving responsibilities report major changes in their working patterns including financial stress, distraction and increased lateness and absence.2
  • 48% of today’s caregivers are 18-49 years of age, for most, their prime work years, and the average length of caregiving is 4.3 years.3
  • Employees with caregiving responsibilities cost their employers an estimated 8% – an additional $13.4 billion per year more in health care costs than employees without caregiving responsibilities.4
  • The cost of informal caregiving in terms of lost productivity to U.S. businesses is $17.1 to $33 billion annually. Costs reflect absenteeism ($4.5B), shifts from full time to part time ($4.8 B), replacing employees ($6.6 B) and workday adjustments ($6.3B).5
  • 6 out of 10 (61%) caregivers experience at least one change in their employment due to caregiving such as cutting back work hours, taking a leave of absence, receiving a warning about performance/attendance. 49% arrive to their place of work late/leave early/take time off, 15% take a leave of absence, 14% reduce their hours/take a demotion, 7% receive a warning about performance/attendance, 5% turn down a promotion, 4% choose early retirement, 3% lose job benefits, and 6% give up working entirely.6

The Program

Contractors Choice – Workplace (CC-W) addresses this increasingly important issue facing employers large and small.  Whether the worker needs the care him/herself, or is tasked with providing for a loved one, the demands of LTC take their toll…on the employee, his/her family and the employer.   CC–W offers a way to offer employees more without incurring additional corporate cost.

CC-W offers a lot of flexibility. The benefit can be offered to both full and part time employees. Or to some as a carve out. Employers can contribute or not. Either way, the program will offer employees a benefit they will appreciate. According to a recent study by Harvard Business School, long term care is high on the list of benefits employees want, especially those in their 40s and 50s, who are often the ones tasked with caregiving.  CC-W offers a benefit that employees cannot easily get for themselves, and for some, due to health or age, might not be able to get at all.   The insurance can be for themselves and spouse and other eligible family members (people they may likely be caring for down the road).

Many employers are deciding it is more cost effective to contribute to the premium for a worksite LTC plan than incur costs to productivity from caregivers’ absences and distractions.  There are also significant tax advantages.

A Benefit Employees Will Appreciate and Use

Recent studies document that employers perceived that the most effective benefit when it comes to retaining talent are subsidies for eldercare services, with 92% of employers describing the benefit as either “very effective” or “somewhat effective.”


  • Available to all MCN member companies regardless of number of participants
  • Special discounts of up to 5% for employer and employee for the life of the policy
  • Relaxed and broader underwriting, making insurance more attainable for those with health issues that would normally disqualify them if they applied on their own
  • Unisex pricing. This feature makes CC-W especially beneficial for companies with female employees, who typically pay higher rates
  • Executive Carve Out –deferred compensation for key executives enhances retirement package and provides tax savings to employers
  • Tax benefits for employer and employee
  • On-site education so that employees understand and appreciate the benefit
  • Traditional, Hybrid and Annuity based options – offering up to 100% return of premiums and access to cash value
  • Certified LTC advisor dedicated to your account

Benefits listed above vary with plan and state.

About LTC Specialists, LLC

LTC Specialists, LLC is a Baltimore-based financial planning firm that focuses exclusively on Long Term Care Planning. The firm works with the top 25+ carriers and offers independent, objective advice. It has established a reputation for first class customer service and advocacy on behalf of its clients. LTC Specialists, LLC is endorsed and recognized by the American Association for Long-Term Care Insurance (AALTCI), a highly regarded accrediting body for the Long Term Care Insurance Industry.

For more information or to get a personalized quote,

Call:  443-951-4777 | 833-LTC-PLAN (582-7526)

1-3 Fuller and Majoni, “The Care Company: How Employers Can Cut Costs and Boost Productivity by Helping Workers Manage Caregiving Needs,” Harvard Business Review, Jan. 17, 2019.
4 MetLife Mature Market Group, National Alliance for Caregiving, and the University of Pittsburgh Institute on Aging. (2010).The MetLife Study of Working Caregivers and Employer Health Costs: Double Jeopardy for Baby Boomers Caring for
their Parents
5 Metlife Study of Working Caregivers and Employer Health Costs – cited in note #4 above.
6 National Alliance for Caregiving and AARP. (2015). “Caregiving in the U.S.”