The National Association of Health Underwriters is voicing concern that healthcare legislation reported out this week by the Senate Finance Committee would reduce incentives to buy long term care insurance.
An amendment by Sen. Olympia Snowe (R-Maine) to the bill, America’s Healthy Futures Act, would exempt fixed indemnity health coverage purchased by employees with after-tax dollars from the excise tax on so-called “Cadillac health plans,” notes Kelly Loussedes, a NAHU spokesperson.
At the same time, the panel “dropped language from the bill that would allow a cafeteria plan to offer as a qualified benefit contributions to a qualified long term care insurance contract on a pre-tax basis,” Loussedes said.
The amendment also deleted language that would allow flexible savings reimbursement for employee-paid qualifying LTC premiums, she said.
“We will be working to urge lawmakers to reconsider these helpful LTC provisions,” she said.