Bill on long-term care, retirement fixes heads to White House

Legislation that would allow federal employees to purchase long-term care insurance at a discounted rate is on its way to the White House after gaining final approval from the House and Senate Thursday night.

The bill, H.R. 4040, also includes a provision that would provide relief to federal employees and their families who, through no fault of their own, became victims of retirement coverage mistakes.

The bill directs the Office of Personnel Management to invite bids from private insurers to offer coverage for employees and their spouses, children and other close relatives, at discounted group rates. Federal workers, active-duty military personnel and both civilian and military retirees are all covered. Employees and their eligible family members would pay the insurance premiums, but rates are expected to be discounted.

Purchase of long-term care coverage by employees is optional. Long-term care insurance covers the medical costs of extended illness, including home health care, nursing home care and care in assisted living facilities.

OPM will screen insurance providers and make sure employees receive all the necessary information on insurance options and benefits.

The retirement foul-up that the bill aims to correct arose in the mid-1980s, during the transition from the old Civil Service Retirement System (CSRS) to the Federal Employees Retirement System (FERS). Confused agencies placed some employees in CSRS when they should have been in FERS and some in FERS when they should have been in CSRS. Up to 18,000 federal workers may have been affected.

According to staffers for Rep. Joe Scarborough, R-Fla., who introduced the long-term care measure, President Clinton is expected to sign the bill into law.