Three members of the House civil service panel have introduced competing bills offering long-term care insurance to federal employees.
Rep. Connie Morella, R-Md., introduced the latest proposal on Tuesday. Morella's bill offers long-term care insurance at group rates to federal employees, retirees, active military members, retired military personnel, postal employees and the families of eligible participants.
Rep. Joe Scarborough, R-Fla., has also introduced a bill (H.R. 602) as has Rep. Elijah Cummings, D-Md. (H.R. 110). Morella's bill had not been assigned a number as of Tuesday afternoon.
Long-term care insurance covers the medical costs of extended illness. Covered expenses include home health care, nursing home care and assisted living facilities care. Long-term care insurance can be prohibitively expensive. Under the House bills, the government would attempt to work out discounted rates with insurance companies because the pool of potential clients would be so large--an estimated 20 million people under the Morella bill.
The bills would all require that participants pay the full costs of insurance premiums, unlike the regular Federal Employees Health Benefits Program, in which the government pays most of the premium.
The three bills differ primarily in two areas: who would be eligible to participate and what role the Office of Personnel Management would play in the program.
Both the Scarborough and Cummings bills make the insurance open to federal employees, annuitants, and their families, while the Morella bill extends coverage to active and retired military personnel and postal workers.
The Scarborough bill allows OPM to screen insurance carriers and to provide federal employees with eight to 14 "financially sound and reputable" insurance options. From that point, the carriers are responsible for achieving sales. Under the Morella bill, OPM would have a greater role in setting consumer protections and negotiating rates. OPM would recover its set-up costs through a surcharge on insurance premiums under the Morella bill.
The Cummings bill, which is based on a Clinton administration proposal, would give OPM an administrative budget to run the insurance program and give the agency more control over premium rates and benefits.
An OPM spokesperson said the agency is reviewing Morella's proposal. The House Government Reform Subcommittee on the Civil Service will hold a hearing on long-term care insurance Thursday. Scarborough is chairman of the subcommittee, Cummings is the ranking member and Morella also serves on the panel.
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