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Employees in VLDP or VSDP Can Keep Long Term Care Coverage After Leaving Jobs
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, employees covered under the Virginia Local Disability Program (VLDP), or Virginia Sickness and Disability Program (VSDP) are automatically eligible for coverage under the accompanying long-term care plan.
The long-term care plans under VLDP and VSDP provide benefits to employees 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. (If your political subdivision elected not to participate in the VRS-administered VLDP and instead provide a comparable plan, you are not required by statute to provide a long-term care benefit.)
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 are needed? To continue coverage, exiting employees should submit the following forms to illumifin Corp. within 60 days of their last day of employment:
