Pomeroy, Boustany, Schwartz, Brown-Waite Introduce Legislation to Expand Access to Long Term Care Insurance

Pomeroy, Boustany, Schwartz, Brown-Waite Introduce Legislation to Expand Access to Long Term Care Insurance

Representatives Earl Pomeroy (D-ND), Charles Boustany (R-LA), Allyson Schwartz (D-PA) and Ginny Brown-Waite (R-FL) today introduced legislation to expand access to long term care insurance and strengthen consumer protections of these insurance products. The Long-Term Care Affordability and Security Act of 2009 would permit long-term care insurance to be included in employer-sponsored cafeteria plans and flexible spending accounts, enabling people to pay long-term care insurance premiums using pre-tax dollars.

"With millions of Baby Boomers facing retirement, it is important for Congress to address the looming long term care crisis now," Congressman Pomeroy said. "The Long-Term Care Affordability and Security Act takes an important step toward helping Americans prepare for a secure retirement. This bill will increase access to long term care insurance, providing more people with the coverage they need when it matters most."

"Long-term care is incredibly expensive and far too many families are unprepared because they lack any real coverage," Boustany said. "This common-sense bill will strengthen Americans' retirement security, and protect their access to high quality long-term care in a setting of their choice."

"With this plan, we in Congress are moving forward in providing hard-working American families with the tools they need to make responsible choices and plan for their future," said Congresswoman Allyson Schwartz.

"Millions of Americans are aging and their long-term care costs are escalating rapidly. Especially in today's economic climate, taking care of a loved one is a financial burden working families are increasingly unable to shoulder," Congresswoman Brown-Waite said today. "Long-term care insurance helps provide the peace of mind our seniors so deserve."

Within the next few years, the Baby Boom generation will begin to retire. Among Americans who are currently 65 years old, nursing homes will provide long-term care for 44 percent of them. The average cost for a private room in a nursing home is $75,000 a year, and by 2030, the cost will rise to nearly $207,000. Medicare does not generally cover long-term care costs and Medicaid only covers them for those who are impoverished and provides far fewer quality care choices than are offered through typical long-term care insurance plans.

The Long-Term Care Affordability and Security Act of 2009 will address this growing crisis in a fiscally responsible manner. Under current law benefits such as medical insurance, disability income, life insurance, and a variety of other voluntary benefits are currently offered cafeteria plan tax treatment but long-term care insurance is not, nor can long-term care insurance be purchased through flexible spending account (FSA) dollars. Keeping in mind that most middle-class Americans are learning about their retirement security needs at their place of employment, this legislation allows long-term care insurance to be offered among employer-sponsored cafeteria plans and FSAs. It also updates the consumer protections for federally tax-qualified long-term care policies.

The Long-Term Care Affordability and Security Act of 2009 is endorsed by the American Association of Retired Persons (AARP), the American Health Insurance Plans (AHIP) and the American Council of Life Insurers (ACLI).

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