Panel approves long-term care option for federal workers

In an atmosphere of bipartisan accord, the House Government Reform Civil Service Subcommittee approved a bill (H.R. 4040) Wednesday to offer all government employees and retirees the chance to buy private long-term care insurance at their own expense.

The coverage would be made available at discount rates, estimated at 15 to 20 percent by Rep. Elijah Cummings, D-Md., the senior subcommittee Democrat. Action was by voice vote.

Although the employees and their eligible family members would pay the premium, Subcommittee Chairman Joe Scarborough, R-Fla., Cummings, Rep. Constance Morella, R-Md., and other subcommittee members described the bill as a breakthrough in demonstrating to private employers that there is a way to help protect people against the costs of long-term care. Home health care and nursing home care can cost as much as $50,000 a year, Scarborough said.

"The federal government should be the role model" for the rest of society at a time when the population is aging and few families can afford long-term care without impoverishing themselves, said Morella.

"It's pathbreaking, it's universal," said Del. Eleanor Holmes Norton, D-D.C. "It's a breakthrough even without a federal contribution."

Under the bill, the federal government and commercial carriers of long-term care insurance would negotiate to design long-term care policies that would be offered to federal workers and retirees at "reasonable premiums," Scarborough said. Purchase would be optional. Federal civilian and military employees and retirees, as well as postal employees, would have the option to buy the policies, and also to obtain it for their spouses, children and some other close relatives, Scarborough said.

He said that if the federal government can demonstrate that a program of this type works well, private companies "are likely to follow the government's lead and offer their own employees this important protection."

The only amendment, a requirement that the government make certain that people are properly informed about the options and benefits, was proposed by Rep. Henry Waxman, D-Calif, and adopted by voice vote.

The subcommittee also approved a bill (H.R. 2842) to force federal workers and retirees to sign their children up for health coverage under the Federal Employees Health Benefits Plan if a court has ordered them to give the children health insurance. Rep. Elijah Cummings, D-Md., said the bill would fix a problem that arises when a federal worker or retiree has a child but is not the custodial parent, due to divorce, separation or some other situation. The person who is the custodial parent may obtain a court order requiring the federal worker to provide health insurance of some type for the children, but the worker does not comply.