The Long-Term Care Affordability and Security Act, which aims to facilitate saving for retirement, was introduced in the House of Representatives recently. The Act will allow employers to include long-term care insurance in their cafeteria plans and flexible spending accounts, using employees' pre-tax dollars for contributions.
The bill was introduced by Reps. Earl Pomeroy (D-N.D.), Allyson Schwartz (D-Penn.), Charles Boustany (R-La.) and Ginny Brown-Waite (R-Fla.). The American Council of Life Insurers applauded the bill.
"The high and rising costs of long-term care represents a looming threat to Americans' financial and retirement security," ACLI President and CEO Frank Keating said in a statement. "Today, the average cost for a one-year stay in a nursing home is $75,000. By 2030, the cost could rise to $148,000. Many Americans mistakenly believe that Medicare and health insurance will cover these costs. That is not the case."
ACLI noted public policy benefits to the bill, as well. The organization estimates annual savings in Medicaid nursing home and out-of-pocket expenses of $36.6 billion by 2030, assuming three-quarters of individuals between the ages of 40 and 65 purchase and maintain policies throughout their senior years.
From the June 2009 issue of Benefits Selling Magazine • Subscribe!
