OPM PROPOSED LETTER TO SENATOR WILSON, SPONSOR OF S. 38, THE "FEDERAL EMPLOYEES LONG-TERM CARE INSURANCE ACT OF 1989."

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92M00732R001100020050-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 23, 2016
• Document Release Date: April 25, 2014
• Sequence Number: 50
• Publication Date: August 16, 1989
• Content Type: MEMO

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TO:
9CAFI1E_(1iNEt__
SPECIAL
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAPEMENT AND BUCK* I
' WASHINOTON. DC.20503
August 16, 1989
LEGISLAME REFERRAL MEMORANDUM
Legislative Liaison Officer -
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SUBJECT: OPM proposed letter to Senator Wilson, sponsor of S. 384
the "Federal Employees Long-term Care Insurance Act of
1989."
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"
The Office of Management and Budget requests the views of your
agency on the above subject before advising on its relatiOnShip
to the program of the President, in accordance with OMB
Circular A-19.
A response to this request for your views is nestled no later than
lit61.1PEELTEELLLA!PA-
Questions should be referred to Lisa Fairhall (395-3923), the
legislative analyst in this office.
(SiglAed) kia(na R. SwioeneY
Naomi R. Sweeney for
Assistant Director for
Legislative Reference
Enclosures
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DwM/LE:G RN
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TEL No. Jvl 21.89 025 P.02
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MASNWOTON. S.C. 00416
amorabiss Pete Wilson
United States Senate
Washington, DC 20510?0502
bear Senator Wilsons
.Thenx you for your kind letter of June 15. i very much
appreciate the support you have given me as I enter upon my
new responsibilities as Director of this agency, and I look
forward to working with you in this capacity. I also
appreciated your discussion concerning how your mirederal
/Employees Long-term Care Insurance Act of 1,69," O. 36, would
complement the Administration's goals of providing both more
effective roderal personnel programs and better accees to
essential health services for all Americans.
S. 36, would amend the Yederel Smployees' Group Life Insur-
ance (Ps01.4) law to offer rederal employees in opportunity to
elect long-term care (LTC) insurance coverage for themselves
end their spouses it group insurance rates and, if an employ-
ee so chooses, to trade off a portion of basic YEGL1 coverage
to of tet some of the LTC premium post. The new LTC insur-
ance would provide benefits under one or more plans to offset
expenses associated with extended periods of nursing home
confinement, or similar home health services, required by
chronic, debilitating illnesses. OPM has been worktng in
support of this proposal for more than 2 years, and continues
to strongly support its enactment.
Tour features distinguish s. 36 from the proposal opm submit-
ted to the last Congress: (1) a short title for the bill is
inserted as part of the enacting clause; (2) a definition of
"long-term care insurance,' based on model LTU legislation
prepared by the national Association of znsurance Commis-
sioners, would be included in the law; (3) starting 5 years
after the new program's inception, employees under ege 50
Would be able to qualify for LTC insurance in accordance with
opm regulations; and (4) insurance carriers would be required
to reinsure portions of their LTC liability with other
interested insurance companies under conditions QPM would
determine. orm agrees that these modifications to our
earlier proposal are desirable.
In summary, S. 38 would aocomplish several highly desirable
objectives, without any additional roost to taxpayers. It
would allOw Federal employees to protect themselves and thcar
spouses against the potentially catastrophic financial impact
of LTC arrangements, through a voluntary, low-cost program.
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ICW11/4.E6 RN
TEL No. Jul 21.99 0:25 P.03
lonorable Pats Wilson 2
MOrOOVert it would permit the Federal Government, as an
eMployer, to provide leadership to other employers in con-
fronting and resolving a growing notional health care
problem. I commend you, Senator, for your prompt action to
introduce this bill in the 101at Congress and for your con-
tinuing efforts to gain ever-widening support for it. om in
hopeful that Congress will take early and favorable action on
this bill.
The mime of Management and Budget advises that, from the
standpoint of the Administration's program, there is no
objection to the submission of this letter.
Binoerely,
Constance Sorry plowman
roirector
*.
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