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TOPICS
House makes long-term care insurance tax-free
Federal employees' long-term care insurance would be free from state and local taxes under a bill passed by the House on Tuesday.
The bill, H.R. 2559, would make the long-term care insurance program more affordable for federal employees when it debuts in October 2002.
The bill would also allow retirees who defer their annuities to participate in the long-term care insurance program.
Last year, Congress approved the creation of a discounted long-term care insurance program for federal employees, military personnel, retirees and their families. The Office of Personnel Management is now selecting a contractor to run the program with premiums at a rate 15 percent to 20 percent lower than what is available outside the government. Long-term care insurance covers the costs of nursing care, home health care and other services for people who require constant medical attention
The Congressional Budget Office estimates that the bill will save federal employees - and cost states - about $8 million a year.
The House passed the bill on a 406-1 vote. The Senate must pass the bill before it goes to President Bush for his signature.
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