• Long-Term Care Insurance Gets Nod From Senate
• House Committee Approves Renewal Of Higher Education Act
• New Survey Stresses the Importance of Health Insurance To Workers

Bipartisan Legislation Gives Nod To Long-Term Care Insurance

A recent measure in the Senate would list long-term care insurance among other tax-exempt benefits offered under cafeteria health plans. The insurance will also be considered a qualified use of flexible spending account funds, which allows pre-tax income to be set aside for certain medical expenses. In addition, the measure would put safeguards in place to aid and protect those purchasing the long-term care insurance. “Just 10 percent of seniors have taken out a long-term care insurance policy and only seven percent of all private-industry employees are offered long-term care insurance as a voluntary benefit,” said cosponsor Sen. Olympia Snowe (R-Maine). Current Census figures estimate that there were 37.2 million people age 65 or older in the United States last year. That number is expected to more than double in the next forty years. A recent Penn State study found that the majority of seniors will seek some kind of elder care from nursing homes, assisted living facilities or home care. Read more about the bill, The Long-Term Care Affordability and Security Act of 2007, at http://thomas.loc.gov. To read the entire study, visit http://www.hhdev.psu.edu/hpa/news/2006/kemper_LTC.html.

House Committee Approves Renewal Of Higher Education Act The House Education and Labor Committee approved a bill last Thursday that would renew the Higher Education Act (HEA) for another five years. This bill (HR 4137) closely resembles a version passed in the Senate (S 1642) in July. Originally enacted in 1965, the HEA provides financial support to students and institutions of higher education. It has since been reauthorized seven times, the latest version adding the controversial Aid Elimination Provision, which bans students who have been prosecuted for drug charges from receiving federal aid. The repeal of this provision was one of several amendments adopted by the Education and Labor Committee with the passage of the bill. Others include: Limiting Pell grants for low-income college students to 18 semesters or 27 quarters; Giving TRIO programs, which seek to help low-income students prepare for college, a right to appeal if they are denied grant funding by the Education Department; Creating a grant program for colleges to collaborate with local businesses to help prepare students for in-demand jobs. Both the House and Senate versions would create a “higher education price index” that would track tuition changes, allowing students and their parents to compare price increases at various colleges and universities. The bills would also increase the maximum authorized Pell grant from $5,800 to $9,000 per year. The NASE offers scholarships to dependents of micro-business owners. To read more about the program, visit http://benefits.nase.org/show_benefit.asp?Benefit=Scholarship. New Survey Stresses the Importance of Health Insurance to Workers Most Americans with health benefits provided to them by their company value them above the actual dollar amount that employers pay toward the coverage, according to a survey by the Employee Benefit Research Institute (EBRI). The survey asked workers if they would prefer an additional $7,500 in taxable income, the average per-employee cost that employers spent on health benefits in 2006, in place of their untaxed health care benefits. More than three-quarters (76 percent) chose the employer-provided health coverage. In addition, only six percent of respondents indicated they would accept less than $10,000, while the rest either said that no amount of taxable income would be enough (15 percent), they would need $10,000 or more in taxable income (47 percent), or they were unsure (31 percent). In reaction to these findings, Kristie Darien of the National Association for the Self-Employed commented on the implications for the self-employed: “While these workers are eager to stay on their company’s health plan, the self-employed are forced to go it alone and purchase plans individually. They are further burdened by an unfair tax structure that punishes sole proprietors by not allowing them to deduct health care costs as a business expense.” The NASE is spearheading the effort for a fair and level playing field for all businesses and workers by supporting the Equity for Our Nation's Self-Employed Act. The house version, HR 3660, was introduced on September 25 and its companion bill, S 2239, was introduced in the Senate on October 25. For more information on the survey, please visit http://www.ebri.org/surveys/hcs. Visit the Web site for the Coalition Supporting Equity of Our Nation’s Self-Employed (www.setaxequity.org) for more information on HR 3660 and S 2239. Washington Watch Online Visit the NASE Advocacy Web page to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business. Web site: http://advocacy.NASE.org.