Congress’ Spending Bill Includes EARN Act Provision Supported by HCAOA

Democrat and Republican legislators released a massive $1.7 trillion 2023 omnibus spending bill early this morning, setting up a race to the finish line for the 117th Congress by the end of this week.

HCAOA  is proud to announce that the bill includes an HCAOA-supported provision (the Enhancing American Retirement Now - EARN Act) to make it easier for individuals and families to cover home care expenses and other home- and community-based services by allowing retirement account distributions for payment of long-term care insurance premiums. The provision eliminates the 10% penalty for early withdrawals when used for this purpose. A maximum of $2,500 can be distributed annually from a retirement account for this purpose. This amount will be updated annually for cost-of-living adjustments (Sec. 334 of the Act).

Inclusion of this provision follows months of intense advocacy from HCAOA and its members, who sent more than 1,000 messages to their legislators in support of home care.

“HCAOA is excited that leaders of both parties understand the importance of helping families get the home care they want and deserve,” said Eric Reinarman, HCAOA Vice President of Government Affairs. “This represents the latest step in what we hope is an ever-increasing commitment to both family caregivers and family-funded home care.”

HCAOA was also pleased that the agreement extends both the Money Follows the Person Rebalancing Demonstration program and the Medicaid Protections Against Spousal Impoverishment for Recipients of Home and Community Based Services through the 2027 fiscal year.