Paying for LTC with Pre-tax Dollars

A bill was introduced just before Congress’s summer recess that would amend the Internal Revenue Code to allow long-term care insurance to be paid for with pre-tax dollars. Under “The Long-Term Care Affordability and Security Act” (H.R. 3363), which was introduced by Reps. Earl Pomeroy (D-ND), Jim Ramstad (R-MN), Allyson Schwartz (D-PA), and Kenny Hulshof (R-MO), LTC insurance would be offered in employer-sponsored cafeteria plans and flexible spending, so the premiums could be paid with the same pre-tax dollars. It is a way for consumers to be able to afford the rising cost of LTC insurance, which can go a lot further in helping many people cover medical expenses as they live longer than savings alone and also have the coverage readily available to them.