Perceived cost biggest bar to small businesses that offer LTC

Small-business owners are aware that their employees worry about long term care insurance, but the perceived cost of providing workers with that coverage turns employers off, according to data from John Hancock Financial Services Inc. In May, the Boston-based carrier, along with Mathew Greenwald & Associates Inc. of Washington, performed a phone survey of 502 key benefits decision makers at firms with 10 to 1,000 workers. Just 21% of those surveyed said they offered LTC insurance as an employee benefit. Of those who didn't provide that benefit, the top reason was the perceived cost of offering such a program, garnering 66% of the vote. Fully 63% of the executives who didn't provide LTC coverage at work thought that their employees weren't interested in receiving LTC insurance, while a third said that it would be time-consuming to come up with such a plan. Of the companies that do offer LTC insurance as an employee benefit, 47% of respondents cited retention and attraction of key workers as the top reason for providing the service. Tax advantages to the business or its owner and employee demand for LTC insurance tied for the second leading reason, garnering 43% of the vote. Finally, 42% of the executives said that firsthand experiences contending with LTC issues prompted them to offer the coverage at work.