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Bright Health Group Employees: Navigating the Complexities of Extended Care Costs in Retirement

Healthcare Provider Update: Bright Health provides two medical plans through Blue Cross Blue Shield, along with dental, vision, HSAs/FSAs, and wellness stipends 2. With ACA premiums projected to increase by 1518%, Bright Healths internal plans may help employees avoid steep out-of-pocket costs in the individual market. Click here to learn more

Addressing the potential risks of extended-term care expenses may be one of the biggest financial challenges for Bright Health Group employees who are developing a retirement strategy.

Seven in ten Bright Health Group employees over age 65 can expect to need extended care services at some point in their lives. So understanding the various types of extended care services – and what those services may cost – is critical as you consider your retirement approach.

What Is Extended Care?

Extended care is not a single activity. It refers to a variety of medical and non–medical services needed by those who have a chronic illness or disability – most commonly associated with aging.

Extended care can include everything from assistance with activities of daily living – help dressing, bathing, using the bathroom, or even driving to the store – to more intensive therapeutic and medical care requiring the services of skilled medical personnel.

Extended care may be provided at home, at a community center, in an assisted living facility, or in a skilled nursing home. And extended care is not exclusively for the elderly; it is possible to need extended care at any age.

How Much Does Extended Care Cost?

Extended care costs vary state by state and region by region. The 2021 national average for care in a skilled care facility (single occupancy in a nursing home) was $108,405 a year. The national average for care in an assisted living center (single occupancy) was $54,000 a year. Home health aides cost a median of $27 per hour, but that rate may increase when a licensed nurse is required.

What Are the Payment Choices?

Often, extended care is provided by family and friends. Providing care can be a burden, however, and the need for assistance tends to increase with age.

Bright Health Group employees who would rather not burden their family and friends have two main choices for covering the cost of extended care: they can choose to self-insure or they can purchase extended care insurance.

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Many self-insure by default – simply because they haven't made other arrangements. Those who self-insure may depend on personal savings and investments to fund any extended care needs. The other approach is to consider purchasing extended care insurance, which can cover all levels of care, from skilled care to custodial care to in-home assistance.

When it comes to addressing your extended care needs, many look to select a strategy that may help them protect assets, preserve dignity, and maintain independence. If those concepts are important to you, consider your approach to extended care.

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What type of retirement plan does Bright Health Group offer to its employees?

Bright Health Group offers a 401(k) retirement savings plan to its employees.

Does Bright Health Group match employee contributions to the 401(k) plan?

Yes, Bright Health Group provides a matching contribution to employee 401(k) plan contributions, subject to certain limits.

What is the eligibility requirement for employees to participate in Bright Health Group's 401(k) plan?

Employees of Bright Health Group are eligible to participate in the 401(k) plan after completing a specified period of service, typically within the first year of employment.

How can employees at Bright Health Group enroll in the 401(k) plan?

Employees can enroll in the Bright Health Group 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What investment options are available in Bright Health Group's 401(k) plan?

Bright Health Group offers a variety of investment options within its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.

Can employees at Bright Health Group take loans against their 401(k) savings?

Yes, Bright Health Group allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What is the vesting schedule for employer contributions at Bright Health Group?

The vesting schedule for employer contributions at Bright Health Group typically follows a graded vesting schedule, which means employees earn ownership of employer contributions over time.

How often can employees at Bright Health Group change their 401(k) contribution amounts?

Employees at Bright Health Group can change their 401(k) contribution amounts at any time, subject to the plan's guidelines.

Does Bright Health Group provide financial education resources for employees regarding their 401(k) plan?

Yes, Bright Health Group offers financial education resources and workshops to help employees understand their 401(k) plan and make informed investment decisions.

What happens to an employee's 401(k) balance if they leave Bright Health Group?

If an employee leaves Bright Health Group, they have several options for their 401(k) balance, including rolling it over to another retirement account, leaving it in the plan, or cashing it out.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Bright Health Group announced a major restructuring plan, which includes significant layoffs and changes to their employee benefits. The company is focusing on streamlining operations to address financial challenges.

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For more information you can reach the plan administrator for Bright Health Group at 219 N 2nd St #401 Minneapolis, MN 55401; or by calling them at +1 833-356-1182.