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LTC Insurance Premium Tax Deduction - H.R.831/S.627
With the passage of the long term care bill by the 106th Congress,
 we will soon have the ability to purchase LTC insurance at unsubsidized
 but reduced rates.  OPM plans to have a choice of plan available before
 the end of 2002.

Representative Johnson has introduced H.R.831 It amends the Internal Revenue 
Code to allow: (1) a deduction (based on years of continuous coverage) for 
eligible long-term care insurance premiums for a taxpayer, spouse, and 
dependents, including accelerated deduction percentages for persons who 
are 55 years old; and (2) long-term care insurance to be offered under 
cafeteria plans and flexible spending arrangements.  It also allows an 
income-adjusted (limited) credit for eligible individuals with long-term
care needs.  It sets forth specified requirements for qualifying long-term
care insurance contracts.

Senator Grassley has introduced an identical bill S.637 in the Senate.  

 

Action needed
We need more co-sponsors for these bills. We have a good start, as you can see by clicking Co-sponsors of H.R.831 and Co-sponsors of S.627. For a letter requesting co-sponsorship, click on Sample for language you can use.
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