LTC TOPS LARGE EMPLOYERS' EXPANDING BENEFITS LIST

About one-third of Fortune 100 employers report interest in adding voluntary benefits, as they look to offset their cost-shifting efforts by providing a wider array of benefits, according to a recent study by MetLife. Long-term care insurance is the fastest-growing voluntary benefit at these companies, up 61% over the past four years. Disability insurance was up 28% during the same period. One-third of employers offer optional LTC plans, and 39% provide disability coverage. The study was based on benefit trends and offerings at 88 of the Fortune 100 companies. According to MetLife's 2004 Employee Benefits Trend Study, 44% of employers believe they can enhance their benefits portfolio in a cost-effective way by adding voluntary benefits, with 34% of employers saying "providing a wider array of voluntary benefits" was extremely or very important. That figure jumps to 46% for large companies with 5,000 or more employees, indicating that voluntary benefits have even greater appeal for them. "As companies search for cost-effective solutions to attract and retain workers, voluntary benefits will become even more prevalent, particularly benefits such as financial planning and income annuities," said Robert Love, vice president and head of MetLife's national accounts business. This study confirms earlier findings from Eastbridge Consulting, which reports that new voluntary benefit sales grew 3% last year to more than $4.2 billion, nearly double the 1.8% growth in 2003.

Source: BenefitNews.com, August 25, 2005, subscribe at subscribe-connecthtml@sdponline3.com