Bill would encourage purchase of long-term care insurance
Lawmakers have introduced a bill that would make it easier for people to purchase long-term care insurance.The Long-Term Care Act of 2007 would allow individuals to use, without penalty, pre-tax dollars from individual retirement accounts (IRAs) and other retirement savings plans to purchases qualified long-term care insurance policies. Sen. John Thune (R-SD) and Rep. Lee Terry (R-NE) introduced the bill.
Bruce Yarwood, president and CEO of the American Health Care Association praised the bill as a way to "help relieve the burden of long-term care planning." The national average cost of long-term care has increased 15% since 2004, according to Genworth Financial's 2007 Cost of Care Survey, which was released in April.