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ess, several private insurance companies to participate in a new federal employee long-term care insurance program. For ease of administration, this option would initially be open only to the 650,000 federal employees who are 50 years of age and older and their spouses. After five years OPM could open the program up to federal employees and spouses of all ages.
Participation in this program
Would be voluntary, and the cosrS|^ the insurance would be paid by each employee. The competitive bidding process and the availability of a group plan is likely to make the federal long-term insurance policies available under this program much more attractive and affordable than an individual long-term care policy.
As an additional incentive to encourage federal employees to participate in this program, this legislation would permit those insured under federal group life insurance to voluntarily convert, on a tax-free basis, a portion of this policy to the new long-term care insurance program. This would enable participants to lower the monthly premium for their new long-term care insurance.
This conversion option recognizes the changing needs of some federal employees as they get older and protection against the frightening costs of long-term care becomes more important. Indeed, for many Americans this represents the greatest fear of old age — a debilitating illness that leaves one unable to care for himself or herself.
By offering group long-term care insurance to federal employees, as well as their spouses, and by permitting them to convert a portion of their federal life insurance to longterm care coverage, this legislation should provide a significant incen
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