Providers back Senate bill that would help people save for LTC insurance

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Many long-term care providers are throwing support behind a Senate bill that encourages Americans to invest in long-term care insurance.

Sponsored by Rick Santorum (R-PA), the legislation would create tax incentives to help U.S. residents save funds for long-term care insurance. Specifically, it would establish tax-free long-term care accounts, like health savings accounts. Individuals could place as much as $5,000 per year in the accounts. It would also allow employers to offer long-term care insurance under cafeteria plans and flexible spending accounts.

The Deficit Reduction Act, which President Bush signed earlier this month, included some long-term care insurance provisions from the Long Term Care Insurance Partnership Program Act. This legislation expands people's opportunity to purchase state-approved long-term care insurance policies.