Long-Term Care Plan Flashcards
Long-Term Care Plan
an employer-provided benefit that is somewhat similar to health insurance
What does it cover?
nursing home or homecare if chronically ill
Are these benefits typically included in an employer’s health care plan?
no
For an employee’s perspective…
very compicated and difficult to compare policies
When is it indicated? (2)
- the employer wanrs to provide a benefit that an employee might not otherwise be able to afford
- the emplyer employs an older employee group
Are LTC premiums expensive?
yes
Are employer tax deductions for LTC premiums allowed?
Yes
What are tax deductions for ltc limited by?
a floor for medical expense deductions
Can an employee’s share of LTC premiums be paid from an employer’s cafeteria plan or employee’s FSA?
NO–can be paid from HSA or HRA
Can LTC discriminate?
Yes–as long as the group of employees is classified separately and all members of that group are treated equally
What are considered “qualified long-term care services”?
- the inability to perform at elast 2 activities of daily living (bathing, dressing, eating, toileting…)
- the loss of mental function resulting from stroke, dementia, or alzheimers
Do COBRA continuation requirements apply?
no
Can an LTC plan cover spouses and dependents on same basis as a health insurance plan?
yes
A qualifed LTC insurance contract is: (6)
- only insurance protection that provides coverage of “qualified long term care services”
- does not pay or reimburse expenses that are reimbursable under Medicare
- is guaranteed renewable
- does not include a cash surrender value
- refunds of premiums are used to reduce future premiums or increase future benefits
- certain consumer protection requirements are met
When can a policy be cancelled?
If premiums are not paid
