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Remind Employees of Long-Term Care Benefits Through VLDP, VSDP
An often-overlooked feature of the Virginia Local Disability Program (VLDP) or Virginia Sickness and Disability Program (VSDP) is the ability to continue the long-term care coverage after leaving employment or retiring.
Employees covered by VLDP and VSDP are automatically eligible for coverage under the accompanying long-term care plan. The long-term care plans 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.
NOTE Organizations that opted out of VLDP are not required to provide long-term care benefits.
The maximum daily benefit amount is $96, with a lifetime maximum of $70,080.
Counsel Employees Before They Leave
The cost of long-term care and individual insurance policies to help pay for care may be difficult to afford, and about 70% of those turning age 65 today will need long-term care, according to the U.S. Department of Health and Human Services.
Employees who leave VLDP- or VSDP-covered positions, can elect to continue long-term care coverage at the group rate. They must elect to continue the coverage within 60 days of leaving their position and will be billed directly for the premiums.
NOTE Employees who go on long-term disability (LTD) retain their long-term care coverage until their LTD claim ends. If they do not return to work in a position covered under VSDP or VLDP, they have 60 days from the date their LTD claim ends to remit the form to continue coverage.
What Forms Employees Need to Submit
To continue coverage, exiting employees should submit the following forms to illumifin Corp., VRS’ third-party administrator for long-term care, within 60 days of their last day of employment:
