Employer Update

About 70% of those turning age 65 today will need some type of long-term care, according to the U.S. Department of Health and Human Services. Yet the cost of long-term care and individual insurance policies to help pay for care are high.

As a reminder, if your employer participates in the Virginia Local Disability Program (VLDP) or Virginia Sickness and Disability Program (VSDP), employees are automatically eligible for coverage under the accompanying long-term care plan. The long-term care plans under VLDP and VSDP provide benefits to those who may need help with everyday life tasks because of a prolonged health problem or following a major illness or injury. The maximum daily benefit amount is $96 with a lifetime maximum of $70,080.

An often-overlooked feature of the VSDP and VLDP programs is the ability to continue the long-term care coverage after leaving employment or retiring. Those who leave VLDP- or VSDP-covered positions, can elect to continue long-term care coverage at the group rate. Employees must elect to continue the coverage within 60 days of leaving their position and will be billed directly for the premiums.

What forms should they submit? To continue coverage, employees should submit the Authorization of Coverage Retention for the Long-Term Care Plan (VSDP or VLDP) (VRS-170)and the Protection Against Unintentional Lapse of Long-Term Care (VSDP or VLDP) (VRS-171)to the Long-Term Care Group, Inc. within 60 days of their last day of employment.