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Why is it that most employers do not currently provide their employees with long term care (LTC) insurance along with medical expense insurance, group life insurance and other employee benefit plans?

April 26, 2017Currently employees employers expense Insurance Life Insurance LTC medical term

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Why is it that most employers do not currently provide their employees with long term care (LTC) insurance along with medical expense insurance, group life insurance and other employee benefit plans?

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A primary reason is the uncertainty that exists currently as to the federal income tax treatment accorded employer-provided LTC insurance. Although considerable debate has taken place, Congress has yet to clarify the tax treatment surrounding employer-provided LTC insurance. A second reason may relate to the premium cost for this coverage. Because it is expected that as much as 40 percent of the over-65 population will need care in a nursing home, the premium for LTC insurance can be relatively high.