American Workforce Concerned About Long-Term Care Needs

The survey found that while 87 percent of Americans think long-term care is a big problem in the U.S., and nearly 70 percent are worried about financing their own long-term care, most respondents were unable to answer basic questions about long-term care. In addition, 48 percent of respondents indicated they have done little or no long-term care planning.

"With long-term care, misinformation and inaction are a recipe for problems," said Dr. James Firman, NCOA president and CEO. "This could lead to very difficult choices and dire consequences for many individuals and their families to face in later years."

The survey also revealed that more Americans said they were worried about financing their long-term care than their retirement, 69 percent to 56 percent, respectively. "We believe the level of concern about financing long-term care is due in part to the fact people haven't planned, In the past ten years, many Americans have realized the importance of retirement planning and have already started to save through plans. However, while they also recognize the importance of long-term care, they don't know what to do."

The survey indicates employees have a strong interest in their employers helping with their long-term care planning. Three-fourths of those respondents whose employers did not offer long-term care insurance said they'd like them to offer it. Moreover, 82 percent of these employees said they would be interested in acquiring long-term care insurance if it were offered.

The number of companies offering long-term care insurance to help employees plan their future is growing, especially as the government clarifies its position on the tax issues and as the number of people involved in helping friends of relatives with long-term care continues to rise. In fact, according to the most recent data from the Health Insurance Association of America, the number of employers sponsoring long-term care insurance plans increased an average of 58 percent annually from 1991 to 1994.

Federal legislation passed last year allows employers who offer to treat long-term care insurance premium payments made on behalf of employees as tax deductible, like health insurance premiums. Cheung mentioned that since this provision became law there has been an increase in the number of companies requesting information on long-term care plans. Also, the law allows employees to exclude employer contributions and benefit payments as income.

The survey also showed caregiving is currently affecting both employers and employees. More than half of survey respondents said they have had friends or relatives who have needed long-term care. Of this group, 23 percent are providing or have provided financial assistance and 53 percent are providing or have provided hands-on care. In fact, about 20 percent of the hands-on caregivers aged 35-54 are spending more than 48 hours a week providing care.