The Trump Administration is (very quietly) looking at ways to reinvigorate the flagging private long-term care (LTC) insurance market. The recommendations are expected to surface later this year. And they likely will be very modest.
The ideas being considered would make some regulatory changes and create new tax subsidies to encourage consumers to purchase private LTC insurance. They would send an important signal that the Administration recognizes that this private insurance currently is not serving many middle-income consumers and that the federal government should work with states to “regrow” the private market. However, the proposals are unlikely to build much interest among those with middle-incomes.
To address LTC insurance, the White House set up an interagency task force that includes representatives from Treasury, the Department of Health and Human Services, the Centers for Medicare and Medicaid Services, the Internal Revenue Service, the Office of Management and Budget, and the Department of Labor. The effort is part of a much broader review of financial services laid out in Treasury’s 2017 Report on Asset Management and Insurance.
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