Two bills were introduced this week in Congress that would change the tax code affecting health insurance,
The Long-Term Care Affordability and Security Act of 2009 (S.702) sponsored by Senator Chuck Grassley (R-IA) would amend the Internal Revenue Code of 1986 to allow long-term care insurance to be offered under cafeteria plans and flexible spending arrangements and to provide additional consumer protections for long-term care insurance. The bill is cosponsored by Collins (R-ME), Ensign (R-NV), Graham (R-SC), Johnson (D-SD), Klobuchar (D-MN), Lincoln (D-AR), Snowe (R-ME).
A second bill (S.725) introduced by Senator Jeff Bingaman (D-NM) is called the Equity for Our Nation’s Self Employed Act of 2009 and it would amend the Internal Revenue Code of 1986 to allow self-employed individuals to deduct health insurance costs in computing self-employment taxes. It is cosponsored by Senator Orrin Hatch