Insurers Lukewarm on LTC Bill Passed by the House National Underwriter (Life and Health Financial Services Edition) (08/05/02) p.3; Brostoff, Steven
Insurers insist that the long-term care insurance bill, H.R. 4946, recently approved by the House does not provide enough of a tax incentive for long-term care policyholders, according to this article. The proposed bill would provide an above-the-line deduction for some long-term care insurance premiums for low and moderate income individuals and couples and would phase the deduction in over 10 years. The insurance industry advocates a 100 percent deduction without income restrictions, but H.R. 4946 offers only a deduction for individuals and couples with lower adjusted gross income. Insurers say they will work with Congress to expand the tax incentives of the long-term care insurance bill. ACLI says long-term care insurance is the best way to avoid the depletion of retirees' personal savings and government funds through unanticipated long-term care costs.