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Herseth Sponsors LTC Insurance Deduction Bill

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NU Online News Service, Sept. 27, 2004, 5:12 p.m. EDT

Rep. Stephanie Herseth, D.-S.D., has introduced a bill that would create new tax breaks for purchasers of long term care insurance.[@@]

The bill, H.R. 5110, would provide a tax deduction for LTC insurance premiums along with a tax credit for taxpayers who need long term care and their caregivers. The credit would start at $1,000 in 2005 and increased to $3,000 after 2008.

The bill also would let employers include LTC insurance in cafeteria plans and flexible spending accounts.

Frank Keating, president of the American Council of Life Insurers, Washington, put out a statement praising the Herseth bill as an example of bipartisan support for efforts to encourage Americans to buy LTC insurance.

Adopting the bill “would represent wise public policy and provide economic security and peace of mind to millions of workers and retirees,” Keating says in the statement.

Congress plans to post links to information about the bill on the Web at

At press time, the link was not yet active.