ALERT: ASHCF Applauds Bipartisan Legislation to Empower Seniors to Use Life Insurance Policies to Pay for Health Care Costs
The Alliance for Senior Health Care Financing applauds House Ways and Means Committee members Rep. Kenny Marchant (R-TX) and Rep. Brian Higgins (D-NY) for introducing H.R. 7203, which would permit seniors to use life insurance policies they already own to fund a wide range of health care costs, including long-term care expenses and long-term care insurance premiums.
H.R. 7203 would allow the proceeds of a life settlement—the sale of a life insurance policy for a market value return—to be rolled over, tax-free, into accounts dedicated to funding permitted health care expenses. Distributions from the accounts would not be taxed if used for permitted expenses. Distributions for unauthorized purposes would be subject to both income taxes and penalties. Any undistributed amounts in the accounts, including investment earnings, would not be taxed during the lifetime of the account holder or such person’s spouse.
The Alliance strongly urges Congress to enact this important legislation.
We are the Alliance for Senior Health Care Financing
Seniors today face an unprecedented health care funding crisis. For a couple retiring today, out-of-pocket health care costs – costs not covered by Medicare – often can exceed $500,000 in retirement. Yet most seniors do not have adequate resources set aside to meet their health care costs. As the U.S. population of seniors is projected to more than double in the coming decades, health care is expected to become even more costly for seniors, their families, and taxpayers. New, innovative solutions are needed to address this very personal and public policy challenge.
The Alliance for Senior Health Care Financing (ASHCF) is a 501(c)(4) organization dedicated to developing innovative solutions to empower seniors to make the best use of their existing resources to pay for health care costs not covered by Medicare, including long-term care. The Alliance is the leading advocate for public policies that help seniors benefit from life settlements, the sale of life insurance policies to a third party for full market value in transactions characterized by strong consumer protections.