Congress approved legislation (H.R. 4040) designed to assist federal and military employees and retirees with the purchase of long-term care insurance. Both chambers approved the measure by voice vote on July 27.
The House originally approved the bill, sponsored by Rep. Joe Scarborough (R-FL), in May. On July 25, the Senate passed it by voice vote, after approving a substitute amendment reflecting a version (S. 2420) sponsored by Sen. Charles Grassley (R-IA).
The legislation would allow federal and military employees and retirees to purchase long-term care insurance at group rates, which usually are significantly lower than the rates for individually-purchased plans. Long-term care insurance policies can be purchased to help cover a range of situations, including private in-home nursing care, family caregivers, and assisted living facilities. Under H.R. 4040, the Office of Personnel Management (OPM) would be authorized to negotiate with long-term care insurers for benefits, in much the same way that OPM currently negotiates with health insurers on behalf of workers enrolled in the Federal Employees Health Benefit Program.
In addition, the Senate’s substitute version includes language regarding a group of federal employees who retired during the 1980s and were erroneously placed in retirement plans other than the Federal Employees Retirement System (FERS). The amendment would allow those retirees to retain their current pension plans, rather than requiring them to switch to FERS as current law requires.
During the Senate’s consideration of the measure, Sen. Barbara Mikulski (D-MD) spoke in favor of the legislation. “Faced with a sick parent or spouse, most Americans currently do not have a lot of choices,” she said, adding that those with long-term care insurance “will not be burdened by trying to figure out how to finance health care needs—and beneficiaries will be able to make informed decisions about their future.”
Sen. Mikulski also stated that “80 percent of all long-term care services are provided by family and friends.” She added that “41 percent of all women in caregiver roles quit their jobs or take family medical leave to care for a frail older parent or parent-in-law.”
On the House floor, Rep. Connie Morella (R-MD) stated, “This long-term care insurance bill has taken a lot of time. It has been long term, but it has been worth it,” she said.
According to the Older Women’s League, caregiving responsibilities disproportionately fall upon women, who make up more than 70 percent of family caregivers. Additionally, as women live an average of seven years longer than men, they often require long-term care themselves. Approximately 60 percent of those in need of long-term care are women.
Research conducted by AARP shows that the average American woman spends 18 years of her life caring for an elderly relative. Most caregivers spend an average of 69 hours per week in that role; two-thirds work full- or part-time jobs in addition to providing family care. Most are simultaneously caring for their own children.
