Some members of Congress want to deal with the death of the Community Living Assistance Services and Supports (CLASS) Act by bring up another long-term care (LTC) benefits idea: Letting workers use their flexible spending accounts (FSAs) to buy long-term care insurance (LTCI).
If employees could buy LTCI through FSAs and cafteria plans, they could pay for the coverage with pre-tax income.
Rep. Charles Boustany, R-La., the sponsor of a bill that would officially repeal the CLASS Act and kill off the CLASS program, may have persuaded Rep. Richard Neal, D-Mass., to support a new bill letting LTCI into FSAs, according to The Hill.
Neal has been supporting to FSA LTCI bills for years. In the last Congress, for example, he supported H.R. 3363, an FSA LTCI bill introduced by Rep. Earl Pomeroy, D.-N.D.
Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI), Westlake Village, Calif., says he is happy to see someone in Washington trying to do something rather than focusing on empty rhetoric.
“Allowing LTC insurance to be included as part of FSAs would likely bring a few more insurers back into the group LTC insurance business and certainly would increase the number of insureds,” Slome says.
The voluntary LTCI program for federal employees attracted 45,000 enrollees this year, Slome says.