Employer-sponsored LTC plans are becoming very attractive to both employers and employees.

As many baby boomers see their parents and grandparents struggle with the high cost of long-term care, they realize that their turn may come. Some are helping a parent or grandparent cope while also trying to put their own children through school and save for their own retirement. It is a strong incentive to seek a solution, and the demand for good employer-sponsored long-term care insurance is increasing. As a result, employers are responding as they realize that retirement planning is an important issue for many of their employees.

With the passage of the Health Insurance Portability and Accountability Act of 1996, which allows employers to take a tax deduction for the cost of setting up an LTC plan and the premiums they pay for their employees, and with the benefits tax-free to their employees, we can expect to see a steady increase in employer-sponsored LTC plans.

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