Bill Would Allow Life Insurance Policies To Fund Health Care Needs

A bill to allow seniors to use life insurance to cover the cost of long-term care insurance is being considered by Congress.

Introduced by Reps. Kenny Marchant, R-Texas and Brian Higgins, D-N.Y., would permit seniors, regardless of their health status, 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.

“I am thrilled to see the concept we have pioneered being put into legislation,” said GWG Holdings Life Executive Vice President Chris Orestis. “Seniors who have felt they had no choice but to lapse a life insurance policy to qualify for Medicaid now have an option that can improve their lives in their final years. This is an important step toward finding solutions to the long-term care crisis this country faces.”

Supporters of H.R. 7203 believe it has widespread, bipartisan support as a solution to the growing cost of senior care in the country that cuts the costs of a massive taxpayer-financed government program. The bill has been referred to the House Ways and Means Committee on which Marchant and Higgins serve.

It is unlikely to pass the current session, which has just days to go. The bill, however, could be re-introduced in the next session.