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http://www.house.gov/cummings/press/02jul11a.htm
Archived: 12/12/2002 at 14:42:30
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Congressman Elijah
E. Cummings |
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FOR IMMEDIATE RELEASE
July 11, 2002
FOR ADDITIONAL INFORMATION:
Devika Koppikar
(202) 225-4741 or (202) 225-4024
Mike Christianson
(410) 496-2010 or (202) 225-9876
Twenty Million Federal Employees Now Eligible to Enroll in
Federal Long Term Care Insurance Program
Congressman Cummings Introduced Original Legislation
Washington, D.C. -- As a result of the passage of legislation originally introduced by Congressman Elijah E. Cummings (D-Maryland), 20 million federal employees are now eligible to enroll in a Long Term Insurance Program. The program will allow federal employees to purchase insurance that will help pay for long term care services, such as home care, care in a nursing home or assisted living facility.
According to the 2002 MetLife Mature Market Institute Survey of Nursing Home and Home Care Costs, the cost of a nursing home is currently $52,196 annually, while the cost of a assisted living facility is $25,908 per year. Most long term care is not covered by Medicare or health insurance programs. With inflation, nursing home costs have been rising at about 5% a year. At this rate, the cost of nursing home care (for a semi-private room) in 2032 is expected to be $190,600 a year.
“Long term care costs are usually not covered by health insurance or Medicare. In addition, costs are rising substantially every year,” Congressman Cummings said. “This program will help federal employees pay their long term care costs when they need it in the future.”
The federally-sponsored program also provides coverage for working adults under the age of 65 who may need long term care as a result of untimely accidents or chronic illness. While 60% of people who require long term care are 65 or older, about 40% are working-age adults between the ages of 18 and 64.
“Sudden accidents or illness requiring long term care can easily exhaust one’s savings,” Congressman Cummings noted. “This insurance program will protect employees from becoming impoverished.”
Congressman Cummings introduced the original legislation that was later incorporated into The Long Term Care Security Act (H.R. 4040) during the 106th Congress. The legislation was passed by both Houses and signed into law by President Clinton in the September of 2000.
Those eligible for the federal long term care insurance program include federal employees, postal employees, members of the uniformed services, federal retirees and qualified relatives (spouses, adult children and parents). Open enrollment will continue until December 31, 2002.
"The implementation of a long-term care benefit program by the federal government will not only set an example for other employers, it will challenge federal employees to think about how they are going to protect themselves and their families during their elder years," Congressman Cummings observed.
Eligible individuals will be able to purchase long-term care insurance coverage at a lower group rate.
For more information on the program, visit http://www.ltcfeds.com or call 1-800-LTC-FEDS (1-800-843-3337) or 1-800-843-3557 (TDD for hearing impaired).
For additional information, please contact Ms. Devika Koppikar at (202) 225-4741 or (202) 225-4024, or Mr. Mike Christianson at (410) 496-2010 or (202) 225-9876.
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