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For years, long-term care has lived in the background of employee benefit conversations, seen as a “maybe later” topic. But as the workforce evolves and state legislation changes the game, long-term care (LTC) is quickly becoming a must-have benefit for companies that want to stay ahead of both compliance and compassion.
The Modern Workforce Is Feeling the Strain of Caregiving
Today’s workforce spans four, sometimes five, generations. And with that comes a new kind of pressure: caregiving. Over 53 million Americans are unpaid caregivers, many of them full-time employees and at the director level and higher.
They’re helping aging parents navigate home health care, assisted living, or nursing care often with no roadmap and significant personal financial risk.
Younger employees aren’t exempt. Millennials and Gen Z are beginning to step into these roles earlier than previous generations, while also trying to plan for their own futures. As the cost of care skyrockets, concern is rising across every age group.
That’s why long-term care is no longer just a retiree issue. It’s a workforce issue. And it’s one smart employers can’t afford to ignore.
Adding fuel to the fire is a growing wave of state legislation aimed at solving the long-term care funding crisis. Washington state has already implemented a payroll tax to fund a public LTC program, and other states such as California, New York, and Pennsylvania are actively considering similar proposals.
Here’s the catch: these taxes apply unless an employee can prove they have private long-term care coverage in place.
This is where proactive companies have an opportunity to lead. Rather than wait for the tax to hit, some employers are helping employees secure private LTC coverage now - at no cost to the company.
A Win-Win: Voluntary Long-Term Care Through HollowtreeLTC
Solutions like HollowtreeLTC.com are paving the way with a voluntary long-term care benefit that requires no employer funding and no administrative burden. Employees get access to group-rated LTC insurance, often with guaranteed issue, which means no medical or financial underwriting through trusted carriers.
Here’s how it benefits both sides:
- Employers avoid the cost of future payroll tax liabilities hitting their employees and can offer a modern benefit without adding to their budget.
- Employees gain protection for future care needs and meet exemption requirements in states with LTC tax laws on the horizon.
It’s rare that a benefit can be this impactful without hitting the employer’s bottom line.
Why LTC Fits a Multigenerational Strategy
Long-term care may be one of the few benefits that speaks to every generation:
- Gen Z & Millennials are starting to think long-term and are eager to avoid the financial hardship they’ve seen older family members experience.
- Gen X are sandwiched. Caring for both kids and aging parents and need solutions now.
- Boomers want security as they approach or enter retirement and are more open than ever to employer-sponsored options.
This universal relevance makes LTC a smart addition to any total rewards strategy focused on equity and holistic wellbeing.
What HR Leaders Can Do Now
- Stay Informed on State Legislation – If your company operates in a state considering LTC payroll taxes, you need to plan early.
- Explore No-Cost Solutions – Platforms like HollowtreeLTC.com can walk you through options tailored to your employee base with no budget impact.
- Promote Education & Awareness – Many employees don’t understand long-term care or why it matters until it’s too late. Early education builds trust and participation.
- Lead the Conversation – Benefits leaders have an opportunity to champion policies that meet both personal and financial wellness goals.
Final Thought
Long-term care is no longer a “nice to have” it’s a benefit whose time has come. Between a multigenerational workforce, rising caregiving demands, strains on Medicaid and new legislative pressure, LTC is fast becoming the next frontier in employee benefits.
Forward-thinking companies will act now to support their people, reduce risk, and stand out in a competitive talent market.
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