Use of internal data in insurance
This briefing note gives a high-level overview of how insurers can make better use of internal data to gain insight and drive competitive advantage.
What is a true group long-term care plan?
We define a true group long-term care plan as one that encourages high employee participation and meets employers’ objectives by using plan designs to reward and retain the most valuable employees. Features like vesting, waiting periods, and employer contributions make it much more likely that employees will participate in the plan and can keep an employer's cost to a level similar to a group dental plan. Thus, a true group plan differs from a voluntary or payroll deduction plan in which the employer does not contribute.
How much does a true group long-term care plan cost?
To demonstrate how much a long-term care offering could cost an employer, let’s discuss the following plan at $150/day with these attributes:
If we apply a similar analysis to a different plan design with $100/day, a three-year maximum and inflation limited to future offers of increase coverage, the cost per employee per month would be only $4.62.
Note! For an essential perspective about true group long-term care, please reference the book True Group Long-Term Care by Milliman’s consulting actuaries Jon Shreve and Jill Van Den Bos (published by the International Foundation of Employee Business Plans).
Designed correctly, a true group LTC plan can have a similar cost to an employer as a group dental plan
What is a true group long term care plan? We define a true group long term care plan as one that encourages high employee participation and meets employers’ objectives by using plan designs to reward and retain the most valuable