WEA Insurance Unveils New Option for Long-Term Care

WEAC members interested in learning more about long- term care will now be able to turn to the WEA Insurance Group for information and to purchase an individual policy.

At a recent WEAC Board meeting, Terry Herndon, CEO of the WEA Insurance Group, introduced a new program that gives members an alternative to commercial long-term care products. The policies will be offered by the WEAC Member Benefit Trust in partnership with an organization currently providing a program to members of the Minnesota Education Association.

“As most of you are aware,” Herndon told the board, “WEAC’s insurance program has been offering group long-term care insurance for a number of years. However, the collective bargaining of group long-term care has been tough, especially in the current QEO environment. While about 30 locals have successfully bargained the group protection into their insurance package, those members who are not successful at the bargaining table remain vulnerable to very significant losses.”

“We believe that the best defense against the cost of long-term care is an insurance policy. But, we are concerned because members who are unable to convince their employers to provide group coverage are left to fend for themselves in the commercial marketplace,” Herndon said.

After a year of work on the matter, the trustees of the Member Benefit Trust constructed a solution: an individual policy chosen by WEAC’s experts.

The Trust recently completed negotiation of a partnership agreement with Midwest Benefit Advisors to offer endorsed policies which provide cost-effective protection to members of all ages.

Herndon said members will find that the Trust has done most of the consumer’s homework for them by combing through the market to find a policy that is reliable, comprehensive, and fairly priced. In addition to WEAC members, spouses of members, and parents of members are also eligible for these policies.

“The financial risk associated with the cost of long-term care is borne by all these family members,” Herndon explained, “so our board of trustees concluded that protecting members requires insurance for spouses and parents of WEAC members too.”

There are two key components in all of the programs of the WEAC Benefit Trust. One, a controlled Trust offers a real product as a concrete benchmark against which to judge commercial products, and two, there is an educational program to make members expert buyers.

Both components will play an important part in the individual long-term care insurance program.

Beginning in late October, the Trust will sponsor frequent and regular seminars throughout the state to educate members about the features of long-term care insurance. Every month, members around the state will have a chance to attend several seminars about long-term care. The Trust will hold two or three seminars each month in the major cities in the state (Milwaukee, Madison, Green Bay etc.), plus many more presentations every month in other sites around the state.

Union leaders who would like more information on these individual long-term care policies, or would like to hold a seminar on long-term care in their area, can contact the WEAC Member Benefit Trust at 1-800-279-4010.

Posted October 3, 1997