Headlines about "Long-term care"
Gathered from the web by the editors at BenefitsLink.com.
The Asset and Income Profile of Residents in Seniors Care Communities
Excerpt: "Understanding the economic characteristics of residents in seniors care communities is important to understanding the demand for these services as well as how individuals are paying for this type of care. It is particularly critical now given the recent steep decline in both the housing and equity markets, which could significantly erode the assets available to pay for senior housing." (Center for Retirement Research at Boston College)
Long-Term Care Insurance: A Companion Report to the Study of Employee Benefits: 2009 & Beyond (PDF)
Excerpt: "Ownership of Long-Term Care Insurance Among U.S. Workers Has Not Kept Pace With Increases in Concern and Need; Access to Coverage and Misperceptions About Cost of Care Are Barriers" (Prudential)
Why You Won't Be Able to Retire
Excerpt: "[T]he most recent reading shows that 51% of Americans will not be ready to retire at age 65, up from 44% in 2007. Frighteningly enough, that figure doesn't even take into account health-care or long-term care costs. When those costs are included, the percentage of Americans who aren't ready to retire jumps to 70%!" (Motley Fool)
House Healthcare Reform Bill Would Create New Federal Program to Pay for Long-Term Care
Excerpt: "The long-term care program is in the House bill. But it is not yet clear if it will be in the Senate bill being shaped by Majority Leader Harry Reid of Nevada." (Wall Street Journal)
Long-Term Care and the CLASS Act: The Sleeper in Health Reform
Excerpt: "The Kaiser Family Foundation briefing examines a little-noticed but major provision in two leading health reform bills that would change the way that the U.S. pays for long-term care. The provision, known as the Community Living Assistance Services and Supports (CLASS) Act, would establish a national voluntary insurance program that would allow for voluntary pre-financing of long-term care through payroll deductions and then provide a cash benefit to purchase services. The briefing included a summary of the measure and discussion by two expert panels." (Kaiser Family Foundation)
[Guidance Overview] OPM Proposal of Long-Term Care and Leave Benefits for Domestic Partners of Federal Employees
Excerpt: "EBIA Comment: As noted in the preamble to the proposed regulations, a majority of Fortune 500 companies, thousands of smaller companies, many colleges and universities, and other public-sector entities already provide same-sex domestic partners with a variety of benefits available to other family members. Although these OPM proposals do not affect other employers, they should be of general interest both to employers who currently provide domestic partner benefits and to those who are contemplating adding those benefits." (Employee Benefits Institute of America)
Actuarial Issues and Policy Implications of a Federal Long-Term Care Insurance Program (PDF)
13 pages. Excerpt: "Our actuarial analysis indicates that the proposed structure and funding approaches in the CLASS Act, as introduced on June 9th, will not only be unsustainable within the foreseeable future, but are unlikely to cover more than a very small proportion of the intended population. In the absence of an actuarially sound requirement, we project that the Fund will be insolvent as early as 2021, or within 11 years. The opt-out and guaranteed issue provisions of the plan pose a significant and likely risk that, in a relatively short time period, the program will either need increased premiums and/or significant reductions." (American Academy of Actuaries)
Kennedy's CLASS Act Would Establish National Long Term Care Insurance
Excerpt: "Congress is starting to tackle long-term care through a measure for a national long-term insurance program, according to the New York Times The New Old Age blog. The Times reports: 'Generally overlooked in the debate over health care reform... is the C.L.A.S.S. Act, a bill introduced by Senator Edward M. Kennedy, Democrat of Massachusetts, that would establish a national long-term care insurance program. The idea has circulated for years, but now advocates think there's a real possibility such a plan will be incorporated into whatever health care bill emerges from Congress. The C.L.A.S.S. Act (short for Community Living Assistance Services and Support, if you're wondering) could transform the way people pay for long-term care.'" (Kaiser Family Foundation)
Employers Perceive a Lack of Interest in Long-Term Care Benefit, According to Survey
Excerpt: "When small employers were asked why they do not offer long-term care insurance, two leading reasons cited were the perceived cost to implement a plan (66%) and a perceived lack of interest on the part of employees (63%). However, the same percentage of respondents to John Hancock's survey reported that their employees are concerned about the ability to fund future long-term care. According to a press release, the ability to afford long-term care for themselves or other family members was second only to that of not having enough money for a financially secure retirement (63% versus 84%)." (PLANSPONSOR.com; free registration required)
Factors Affecting the Demand for Long-Term Care Insurance: Issues for Congress (PDF)
24 pages. Excerpt: "A number of factors have adversely affected the demand for LTCI. The cost and complexity of LTCI policies have been cited as major deterrents to purchasing LTCI. In addition, increased concerns have arisen about the adequacy of consumer protections for LTCI as a result of inconsistencies in LTCI laws and regulations across the states. More recently, adverse publicity about potential problems with claims denials and heightened concerns about the future solvency of LTCI insurers in the current economic environment have further dampened demand." (U.S. Congressional Research Service)
Senate Committee Hearing: 'Boon or Bane? Examining the Value of Long-Term Care Insurance'
Includes written testimony and recorded video of the hearing. (U.S. Senate, Special Committee on Aging)
[Guidance Overview] Bureau of Labor Statistics Data on Employee Access to 'Other Types of Benefits,' 1979-2008
Excerpt: "Table 3 also shows the percent of workers with access to 'other benefits' in 2008. . . . The benefits with the highest rate of worker access were work-related education assistance (50 percent) and employee assistance programs (42 percent). Among the benefits with lower access rates, 2 percent of workers in private industry had access to employer-provided personal computers for home use, and 3 percent of workers had access to employer provided child-care funds." (U.S. Bureau of Labor Statistics)
[Guidance Overview] IRS Ruling on Long-Term Care Coverage Provided Through an Annuity Contract (PDF)
2 pages. Excerpt: "On May 8, 2009, the Internal Revenue Service published its first ruling (PLR 200919011) considering a long-term care (LTC) rider to an annuity contract. . . . The private letter ruling (PLR) addresses many of the federal income tax issues associated with adding an LTC rider to an annuity contract. In particular, the PLR reaches a favorable conclusion on the question of whether any portion of an annuity contract's cash value can be used to fund LTC benefits paid under an LTC rider issued with such annuity contract." (Sutherland)
House Gets New Version of LTC Bill
Excerpt: "Congress now is considering a second version of a major long term care insurance bill. H.R. 2096, the Long Term Care Affordability and Security Act, would allow long term care insurance to be included in employer-sponsored cafeteria plans and flexible spending accounts. Plan participants could pay for LTC insurance with pre-tax dollars. The bill also would create new federal LTC insurance consumer protections based on provisions in a model developed by the National Association of Insurance Commissioners, Kansas City, Mo. H.R. 2096 was introduced by Reps. Earl Pomeroy, D-N.D., Allyson Schwartz, D-Pa., Charles Boustany, R-La., and Ginny Brown-Waite, R-Fla." (National Underwriter Life & Health)
Bill Would Put LTC on Cafeteria Menu
Excerpt: "Lawmakers have launched a new effort to help consumers pay for long term care insurance through cafeteria plans and flexible spending arrangements. In addition to permitting workers to pay for LTC insurance through cafeteria plans and FSAs, the new Senate bill, S. 702, the Long-Term Care Affordability and Security Act of 2009, would add consumer protection standards drawn from a model law approved by the National Association of Insurance Commissioners, Kansas City, Mo." (National Underwriter Life & Health)
Long-Term Care Costs and the National Retirement Risk Index
Excerpt: "This brief is structured as follows. The first section recaps the original NRRI and the NRRI with health care costs explicitly included. The second section describes the nature of long-term care, the likelihood of a household member needing such care, and the financing alternatives available. The third section explores how the challenge posed by long-term care is different for households of different types and wealth levels. The fourth section models the impact of long-term care on the NRRI. The final section concludes." (Center for Retirement Research at Boston College)
[Guidance Overview] IRS Discussion of Deductibility of Nursing Home Care for Individual With Alzheimer's Disease
Excerpt: "EBIA Comment: The most important thing for employers and administrators to remember about this guidance is what it does not say. Specifically, although qualified long-term care services can be deductible on a tax return, health FSAs cannot reimburse them on a tax-free basis. Similarly, most HRAs may not reimburse expenses for qualified long-term care services. (This is because most HRAs are health FSAs -- meaning that the maximum amount of reimbursement they offer is not more than 500% of the employer's contributions.) In contrast, HSAs can reimburse long-term care services tax-free." (Employee Benefits Institute of America)
Cash-Strapped Washington State's King County Faces $67 Million Retiree Medical Bill
Excerpt: "Currently the county is obligated to pay 100 percent of the lifetime medical expenses for participants . . . . King County Budget Director Bob Cowan said the ultimate expense for the county could be $67 million. . . . [T]he retirement program is the only one that included long-term care, meaning employees' nursing home costs must also be paid for, which could some times run up to $15,000 a month per person." (SeattlePI.com)
Senate Committee Hearing on Health Care in an Aging America, March 4, 2009
The subject of the hearing is long-term care services and support. (U.S. Senate Special Committee on Aging)
Long-Term Services and Supports as Part of Health Care Reform: Relief for the Invisible Uninsured? (PDF)
15 pages. Excerpt: "The 2008 presidential election demonstrated a broad interest in health care reform focused on access to affordable quality care and cost containment for both public and private-sector payers. So far, the policy debate has centered on the delivery of acute care services, rather than long-term services and supports (LTSS). But there is a strong case that health care reform will not succeed unless LTSS are also addressed. This brief summarizes some views and history about policy opportunities for long term care that were voiced at a January 2008 roundtable and updates the possibilities to January 2009." (National Academy of Social Insurance)
Long-Term Care Premium Tax Relief a No-Go
Excerpt: "Supporters of legislation that would create tax breaks for long-term care insurance premiums will have to wait until the next Congress. A handful of measures died in committee last month that either would have provided a tax deduction for such insurance premiums or would have given a tax credit to individuals who cared for those with long term care needs." (Investment News; free registration required)
DOL Approves Two Captive Benefits Proposals
Excerpt: "Two big employers have received final Labor Department approval to fund employee benefit risks through their captive insurance companies.The Labor Department approved United Technologies Corp.'s application to use its Vermont-domiciled captive, United Technologies Insurance (Vermont) Inc., to reinsure group term life insurance, accidental death and dismemberment, and long-term disability policies. The group life and AD&D policies will be written by a CIGNA Corp. unit, while the LTD policies will be written by a unit of Liberty Mutual Group Inc." (Business Insurance)
Towers Perrin U.S. Legislative Tracking Chart: Health & Welfare (PDF)
25 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)
Public Long-Term Care Insurance and the Housing and Living Arrangements of the Elderly: Evidence from Medicare Home Health Benefits
Excerpt: "We provide empirical evidence on the extent to which long-term care insurance affects the housing and living arrangements of the elderly by examining plausibly exogenous changes in the supply of long-term care insurance through the Medicare program that occurred in the late 1990s. Prior to 1997, Medicare reimbursed home health care agencies on a retrospective-cost basis. Then, starting in October, 1997, as a result of the Balanced Budget Act of 1997 (BBA97), Medicare switched to a system of prospective payments for home health care, which induced state-by-calendar-year variation in the supply of this type of public long-term care insurance." (Center for Retirement Research at Boston College)
Conseco Inc., a Major Insurer, Has Dumped a Chunk of Its Long-Term-Care Policies Into an Independent Trust
Excerpt: "Conseco Inc. officials have said the transfer of many of the insurers' long-term care policies to a new state-supervised nonprofit trust, Senior Health Insurance Co. of Pennsylvania, allows it to concentrate on its core businesses. The policies were a drag on the company's earnings because they were underpriced and required continuing capital infusions to meet the long-term needs of policyholders." (The Wall Street Journal)
Weighing the Costs and Benefits of Long-Term Care Insurance
Excerpt: "Spending five minutes a day inverted is said to help prevent Alzheimer's, a condition that may result in the need for long-term medical care. So, to help your employees with long-term care issues, buy inversion tables for them and give them five minutes a day to use them. Not exactly practical. A better solution is to consider providing group long-term care insurance as an addition to your employee benefits program." (Employee Benefit News; free registration required)
State Governments Have the Greatest Incentive to Offer True Group Long-Term Care (PDF)
1 page. (Milliman)
Young Workers Must Face Realities of Long-Term Care
Excerpt: "MOST of the nation's 78 million baby boomers are watching their parents grow old. While investigating caretaking options for their parents, they should also be thinking about their own old age and planning how they will pay for nursing homes or home health aides for themselves, experts say. With life expectancy steadily rising, the odds are that they will eventually need some help with basic functions, like dressing or walking, maybe for decades." (The New York Times; free registration required)
Long-Term Care Insurance and Tax Planning - Make the Most of Tax Rules for Premiums and Benefits
Excerpt: "The number of baby boomers in or near retirement is rising, and so too is the demand for long-term care (LTC) insurance. Depending on the age of the insured, such coverage can be expensive, but fortunately for them, Congress and some states have provided income tax incentives for the purchase of certain LTC insurance policies -- called 'qualified' LTC contracts -- in IRC § 7702B." (American Institute of Certified Public Accountants)
New Long Term Care Insurance Tax Break on Table
Excerpt: "A bill recently was introduced that would provide a tax credit for long term care insurance premiums. Introduced by Sen. David Vitter, R-La., and called the Long-Term Care Family Accessibility Act, S 3365 joins a handful of others seeking tax deductions for the costs associated with long term care." (Investment News; free registration required)
Long-Term Care Insurance and Tax Planning
Excerpt: "The number of baby boomers in or near retirement is rising, and so too is the demand for long-term care (LTC) insurance. Depending on the age of the insured, such coverage can be expensive, but fortunately for them, Congress and some states have provided income tax incentives for the purchase of certain LTC insurance policies -- called 'qualified' LTC contracts -- in IRC § 7702B." (American Institute of Certified Public Accountants)
Average LTC Costs Hikes More than Double
Excerpt: "The average rate of increase for cost of long-term care has seen a sizable jump in the last 24 months from 5% to 13% depending on the type of service, according to a Prudential Financial study." (PLANSPONSOR.com; free registration required)
Report: Long-Term Care Insurance: Oversight of Rate Setting and Claims Settlement Practices (PDF)
41 pages. Excerpt: "GAO reviewed information from the National Association of Insurance Commissioners (NAIC) on all states' rate setting standards. GAO also completed 10 state case studies on oversight of rate setting and claims settlement practices, which included structured reviews of state laws and regulations, interviews with state regulators, and reviews of state complaint information. GAO also reviewed national data on rate increases implemented by companies." (U.S. Government Accountability Office)
Testimony: Long-Term Care Insurance: State Oversight of Rate Setting and Claims Settlement Practices (PDF)
23 pages. Excerpt: "This statement focuses on oversight of the LTCI industry's (1) rate setting practices and (2) claims settlement practices. This statement is based on findings from GAO's June 2008 report entitled Long-Term Care Insurance: Oversight of Rate Setting and Claims Settlement Practices (GAO-08-712)." (U.S. Government Accountability Office)
True Group Long-Term Care Insurance As Part of an Employee Benefit Plan
Excerpt: "A rich long-term care benefit with full vesting, no waiting period, and in which the employer makes all contributions could represent a significant cost to the employer. We estimate that a rich plan would increase the total cost of compensation by about 3% to 4%. However, long-term care is a benefit where the payout is expected a long time after employees are hired. Vesting and waiting period rules for group long-term care benefits would allocate full benefit dollars only to the most loyal and experienced employees, thereby keeping costs down." (Milliman)
Fidelity Study Shows $85K Needed for Long-Term Care Insurance Costs for a Couple
Excerpt: "A 65-year-old couple needs $85,000 on average to cover insurance costs for long-term care such as nursing home stays in retirement, according to a study to be released Thursday by Fidelity Investments." (AP via The New York Times; free registration required)
How Can We Improve Long-Term Care Financing?
Excerpt: "While experts generally agree that the existing system is inefficient and ineffective, they disagree on how it should be reformed. This brief . . . will review several options for change. These options include enhancing private long-term care insurance, replacing the current welfare-based system with a public social insurance program, and introducing a hybrid public-private system. None of these alternatives is optimal, but each has significant advantages over the current system." (Center for Retirement Research at Boston College)
The Strains and Drains of Long-Term Care (PDF)
Excerpt: "The financial, emotional, and physical costs of providing long-term care often overwhelm families; unpaid family members supply most of it, struggling to balance these duties with work and other responsibilities. The most common alternative to home care is a nursing home, but a year's stay averaged about $78,000 in 2007 [2], and public assistance is not generally available until the residents have exhausted all of their financial resources. As the nation grows older, it's time to find a better way to care for those who need help as they age." (American Medical Association via Urban Institute)
BS&K NYC Attorneys Publish Article on Employee Free Choice Act in NYS Health Care Providers Newsletter
Excerpt: "Unionization has been an important issue in the New York home care community for the past several years. In this article, two management labor lawyers and partners in HCP Associate Member Bond, Schoeneck & King, PLLC's New York City office examine the provisions and impact of the proposed Employee Free Choice Act." (Bond, Schoeneck & King, PLLC)
Long-Term Care Insurance: Partnership Plans and the Impact of Other Legislation
Excerpt: "Why is true group long-term care so important? Many Americans will have no way to pay for long-term care services when they are needed. Insurance for long-term care will not become widespread if only available on an individual basis, which means that the change will need to come first from employers. Group coverage needs to include employer contributions to make it affordable to employees and vesting to make it affordable to employers." (Milliman)
Structure and Importance of Reserve Transfer Provisions in the Case of LTC Insurance
Excerpt: "For employers who offer group LTC benefits to their employees, one of the greatest risks is becoming contractually locked into one insurer. If the insurer decides to exit the market, elects to raise rates, refuses to lower rates, or provides poor service, the employer is then left without the ability to change carriers. To protect themselves, employers should work to include a clear reserve transfer provision within their group long-term care contract, specifying their right to change LTC carriers and how the accumulated reserves will be transferred to the new carrier." (Milliman)
Consumer-Preparedness for Long-Term Care (PDF)
4 pages. Excerpt: "There are no magic bullets to address the issues of long-term care provision or financing, but it is clear that as more individuals are affected it will become an increasingly important issue for society. Consumers need to continue to receive reliable information about available long-term care services, as well as alternative financing mechanisms." (AcademyHealth)
Chart of State and Local Government Workers' Access to Quality-of-Life Benefits
Excerpt: "Long-term care insurance was offered to 26 percent of State and local government workers in September 2007. Such insurance was the quality-of-life benefit most commonly offered to employees of State and local governments." (U.S. Bureau of Labor Statistics)
[Opinion] Group Letter Supporting Long-Term Care Affordability and Security Act (PDF)
1 page. Excerpt: "We are writing regarding the Long-Term Care Affordability and Security Act of 2007 (H.R. 3363, S. 2337), an important, bipartisan measure that encourages Americans to plan for their long-term care and retirement security needs. The bill has generated support from a broad crosssection of the long-term care community, because it makes long-term care insurance more accessible and affordable for working Americans and provides enhanced consumer protections." (American Benefits Council)
New Long-Term Care Cost Bill Floated
Excerpt: "Introduced by Rep. Adam Putnam, R-Fla., and called the Long-Term Care Retirement and Security Act of 2008, HR 5559 would create tax deductions for eligible long-term-care insurance premiums for a taxpayer and that person's spouse and dependents . . . ." (Investment News; free registration required)
Pricing an Employment-Based Long-Term Care Plan
Excerpt: "Given an employer's limitations regarding cost, how can an LTC plan be designed to provide the best protection against future catastrophic losses for as many employees as possible? In fact, implementing self-funded LTC program with several true group features can result in employer costs very similar to a dental benefit." (Milliman)
[Guidance Overview] IRS Addresses Long-Term Care Policies Provided as an Investment and Benefit Under 401(k) Plan
Excerpt: "IRS recently ruled that the payment of premiums on long-term care policies held by a 401(k) plan for the benefit of electing participants would run afoul of the qualification requirements. IRS reasoned that such payments would be considered taxable distributions and, therefore, would violate the restriction imposed by IRC § 401(k) which permits distribution only on account of severance from employment, death, disability, plan termination, age 59-1/2, hardship, and a qualified reservist distribution. IRS Private Letter Ruling 200806013 (November 15, 2007)." (Deloitte via BenefitsLink.com)
The Outlook for Spending on Health Care and Long-Term Care (PDF)
15 pages. Presentation to the National Governors Association's Health and Human Services Committee, February 24, 2008. (Congressional Budget Office)
[Guidance Overview] IRS Rules Against Qualified Long-Term Care Insurance in 401(k) Plan (PDF)
2 pages. Excerpt: "In PLR 200806013 (November 15, 2007), the IRS ruled that the payment of premiums on qualified long-term care insurance by a 401(k) plan would be treated as a taxable distribution in violation of the distribution restrictions of section 401(k)(2)(B)." (Sutherland Asbill & Brennan LLP)
More Employers Sponsor, More Employees Buy Group Long Term Care Insurance
Excerpt: "In 2007, nearly 10,000 employer groups offered long term care insurance to their workers and their families. These policies covered slightly more than 2 million individuals, according to a study from the American Association of Long-Term Care Insurance (AALTCI). The study was published in the AALTCI's 2008 LTCI Sourcebook." (Wolters Kluwer Financial Services)
Costs of Federal Government Benefits for Seniors Rise 24% Above Inflation Rate Since 2000
Excerpt: "The cost of government benefits for seniors soared to a record $27,289 per senior in 2007, according to a USA TODAY analysis. . . . Medical costs are the biggest reason. Last year, for the first time, health care and nursing homes cost the government more than Social Security payments for seniors age 65 and older." (USA TODAY)
[Opinion] The Case for Cash LTC Insurance Products
Excerpt: "Criticism has recently targeted innovative benefit designs such as so-called 'cash' products. Cash products pay eligible insureds cash based on standard benefit triggers, versus the standard model of reimbursing paid services. Some believe cash products cannot be actuarially sound." (National Underwriter; free registration required)
Long Term Care Insureds Keep Their Coverage, Buy It At Younger Ages
Excerpt: "Purchasers of long term care insurance policies seem to value the coverage and are keeping those policies longer than previously thought, according to a recent study by Schaumburg, Ill-based Society of Actuaries (SOA)." (CCH Benefits)
Moving Beyond Retrospective Testing for LTCI Reserves
Excerpt: "It has long been accepted among actuaries that retrospective -- or 'retro' testing -- is a blunt tool when it comes to establishing the ongoing adequacy of claim reserves for blocks of long-term care insurance. . . . Retro tests have a number of weaknesses. To begin with . . . ." (Milliman)
Finding a Solution for Retiree Health and Disability Benefits in the Public Sector
Excerpt: "In valuing these benefits, actuaries will be making assumptions for benefit costs (pre 65 and post 65 retiree benefits), health care cost inflation (trend) rate, interest discount rate, retirement rates, turnover rates, disability rates, mortality rates, aging assumptions (age/sex factors), asset return on investments (if any of the entities are funding benefits), salary increases if benefits or funding is based on salary (e.g., life insurance), plan participation percentage (some individuals may opt out) and actuarial cost methods. . . . Some of the approaches taken [to mitigate these liabilities] include: . . . ." (The Actuary Magazine)
LTC Claims Doubled from 2001 to 2005, Society of Actuaries Finds (PDF)
2 pages. Excerpt: "Long term care insurers are developing extensive experience in managing claims and policies, developing more details on claims exposure, claims paid, and termination rates, a new study shows. The Long Term Care Experience Study by the Society of Actuaries, Schaumburg, Ill., found voluntary lapse rates by policy holders dropped to 5.5% in the period 1985 to 2005, the time covered in the study, from 7.4% in 2002, when the society issued a similar report on the experience of U.S. LTC insurance carriers up to that point in time." (The National Underwriter Company via Society of Actuaries)
Primer on Long-Term Care and Long-Term Care Insurance
Excerpt: "Evaluating and comparing LTC insurance policies is more complex than with other forms of coverage. Fortunately, the National Association of Insurance Commissioners has written an informative booklet, 'A Shopper's Guide to Long-Term Care Insurance,' which is a very straightforward but comprehensive overview." (Employee Benefit News; free registration required)
Study Shows Healthcare Costs Are Looming Concern for Pre-Retirees
Excerpt: "Among pre-retirees, 63% are concerned about paying for long term care, and 69% are concerned about paying for adequate health care. But only 17% of pre-retirees and 28% of retirees who participated said they have bought LTC insurance, and only 23% of the pre-retirees and 9% of the retirees said they intend to buy LTC insurance in the future, researchers report." (National Underwriter)
Bill Would Allow Tax-Exempt Long-Term Care Insurance Premium Payments
Excerpt: "A bipartisan group of senators on Tuesday introduced a bill that would allow employees to pay long-term care insurance premiums with pre-tax dollars, CQ HealthBeat reports. Under the Long-Term Care Affordability and Security Act -- sponsored by Sens. Chuck Grassley (R-Iowa), Blanche Lincoln (D-Ark.), Olympia Snowe (R-Maine), Debbie Stabenow (D-Mich.) and Gordon Smith (R-Ore.) -- employers could offer long-term care insurance under so-called cafeteria plans, which allow employees to select from a number of tax-exempt benefits, as well as flexible spending accounts." (Kaiser Family Foundation)
Boomers Unprepared for Long-Term Care, But Employers More Willing to Help
Excerpt: "More than 90% of employers offering LTCI think the benefit is important enough that they're ready to help pay for it, according to a recent study from Unum. This is a 'dramatic shift' from earlier years, when the market generally required 100% employee-paid long-term care coverage, Unum notes." (Employee Benefit Advisor; free registration required)
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