Washington, D.C. (July 28, 2009) -- Legislation intended to assist Americans in need of long-term care would provide an inadequate benefit and likely create confusion over the costs of long-term care services, Frank Keating, president of the American Council of Life Insurers (ACLI), said today in a letter to Health and Human Services Secretary Kathleen Sebelius.

“The benefit would pay, at most, 12 percent of their potential round-the-clock home care costs. Yet, far too many enrollees are likely to believe that participation in the program is all they need to protect themselves and their families from the financial burdens of long-term care,” Keating said.

The legislation—called the Community Living Assistance Services and Supports (CLASS) Act—is currently under review in Congress as part of overall health care reform.

Instead of the CLASS Act, Keating suggested a three-pronged approach to expansion of long-term care coverage. These include increased funding for education about the cost of long-term care; expanding the Long-Term Partnership Program, which helps ease state Medicaid burdens; and allowing workers to purchase long-term care insurance with pre-tax dollars.

For a copy of Keating’s letter, click here.

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The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association whose 340 member companies account for 93 percent of the life insurance industry’s total assets in the United States, 94 percent of life insurance premiums and 94 percent of annuity considerations. In addition to life insurance and annuities, ACLI member companies offer pensions, including 401(k)s, long-term care insurance, disability income insurance and other retirement and financial protection products, as well as reinsurance. ACLI's public Web site can be accessed at www.acli.com.