May 2001

In addition to providing child care, more workers also are having to provide some form of care for elderly relatives. This means time away from the office and increased loss of productivity. This situation will increasingly cost businesses in the form of increased absenteeism and costs for training or hiring replacements.

What have business been doing to keep up with or compensate for future family issues? What are employees doing to insure their financial well being when it comes to their own long term care coverage?

A recent e-mail survey of more than 350 companies by WorldatWork regarding elder care and long term care programs and participation found that less than half the participating companies provide a program regarding elder care. Of those providing a program, only 26 percent provide employees with the option of purchasing elder care benefits and 26 percent offer long-term care coverage.

Administration of these programs typically falls outside of the company, with 75 percent of respondents leaving administration up to the insurer and another 23 percent to a third party administrator. Lack of companies offering programs does not appear to be a concern, as participation in programs at the companies that offer them is quite low, with 74 percent of companies having less than 10 percent participation and 22 percent having 11 to 25 percent participation.

Some key findings in the e-mail survey include:

• 43% of the participating companies had a support program for long-term and elder care issues.
• Only 26% of the companies provided long-term care coverage.
• 91% of the long term care plan premiums were paid by the employee only.
• The most common option to a long term care program (82%) was Respite/Skilled nursing care.
• An astonishing 74% of the companies that offered long term care benefits, had fewer than 10% of their employees participating.

All companies

Companies with 2,499 or less employees | Companies with 2,500 or more employees