Are You in the "In" Group?

For an LTC policy, that would be your local association

A few months back, I wrote an article about preparing for the cost of long term care (LTC). That article was meant to alert WEAC members to the importance of planning for LTC before their retirement, because, once a member retires, he or she is no longer eligible to enroll in the group LTC policy that is offered by WEA Insurance.

The article went on to say that members can purchase an individual LTC policy before or after retirement, but that individual policies are more expensive than group LTC policies, and harder to get into.

Many of you contacted us after that article appeared to request more information about LTC. In fact, many of you wanted to enroll in our group LTC policy. It was apparent that I had not done an adequate job of defining what we meant by a “group” LTC policy as opposed to one you purchase on your own.

Many of our readers assumed that as WEAC members they belonged to the “WEAC group,” and were, therefore, eligible for the group LTC rate, and would be able to sign up for the group policy. WEAC members are a group, but it is not your group for insurance purposes.

What is your group?

Most group insurance is employment-based. In the case of public education employees, your group consists of the employees who work in your school district. This group is actually defined by your employer, and conditioned by your collective bargaining agreement. So, for example, in your district the group may be defined as all employees working half-time or more. Or, the district may decide that for a particular plan, the group may consist of only certain employees, like teachers and administrators.

If you are interested in getting our group LTC policy, you will have to let your negotiating team and local union leaders know of your interest, because the policy must be negotiated. If your union representatives and the district agree to adopt our group LTC policy, it will cover 100% of the employees of the definable group.

Why a group LTC policy?

The most economical way to purchase insurance protection is on a group basis. That’s true of any type of insurance, and it is certainly true of LTC. Almost 10 years ago, our Board of Trustees, which is made up of current or retired teachers, realized that the cost of long term care was going to become an issue for WEAC members. Though individual LTC policies were available at that time, it was apparent that some members would not be able to afford such policies, and others might not be able to purchase them at any price because of health conditions. So the trustees developed a high-quality, cost-effective group LTC policy.

Why can’t individual WEAC members buy the group policy? The answer lies in what’s called adverse selection, an insurance term that describes the tendency of those most in need of insurance to buy it and those least in need not to buy it. If this happens, the cost of the insurance policy increases very quickly.

The group policies are cost-effective because the risk is spread across a large population, young and old, healthy and those with ongoing medical conditions. Our group LTC policy is also designed so that, over time, its cost is fair for both younger and older members of the group.

Another advantage of our group LTC policy is that it covers all employees regardless of their health condition. Spouses are required to go through underwriting (that is, their medical history is considered in determining whether they will get insurance). Individual LTC policies require everyone — employees and their spouses — to go through underwriting.

Field Internship position open for summer at WEA

WEA Insurance is pleased to announce a Field Internship program beginning this summer. Many of you know WEA Insurance Field Represen-tatives are our “eyes and ears” in every corner of the state. Having qualified Field Representatives to provide service and education to WEAC members is an important priority for us. So, we created a Field Intern position.

The Field Intern is a one-year (12-month) position designed to provide meaningful education, training, and work experience so that an individual may qualify for a Field Representative position at the end of this 12-month period. As a full-time (limited-term) WEA Insurance employee, the Field Intern will be interacting with school district officials, union members, and other employees in school districts. The Field Intern will be based in Madison for the term of the internship but will be required to do extensive in-state travel, including overnight travel.

It is likely that some individuals interested in this opportunity are currently working in a school district. So, we’re prepared to design compensation and benefits for the successful candidate that would allow her/him to pursue this opportunity while on a leave of absence from her/his school district. After an individual successfully completes the internship, she/he will be qualified for a Field Representative position. If a position is not available at that time, the Intern may return to her/his previous job, and will remain qualified for a Field Representative position.

If this opportunity sounds intriguing to you, or you would like more information, please contact Bob Ceder at WEA Insurance, 608-276-4000 or 1-800-279-4000, ext. 2210.

Posted April 5, 1999