The result of the two pieces of legislation is a greater opportunity for the producer who can now advise clients that it appears the federal government: 1. is concerned about the lack of interest consumers are showing in financing their own long-term care expenses, 2. does not want a continued escalation of Medicaid expenses for the non-indigent, and 3. believes there are insurance industry alternatives that are worthwhile. The Deficit Reduction Act (DRA) of 2005 includes several provisions designed to discourage the use of 'Medicaid planning' techniques and to impose penalties on transactions that are intended to protect wealth while enabling access to public benefits. Following the DRA's passage was the Pension Protection Act (PPA) of 2006, which was signed into law on Aug. 16, 2006. While the PPA primarily covered issues regarding defined benefit pension plans, Congress used it as an opportunity to expand long-term care insurance protection to a product line that already has been firmly established in the financial services arena - annuities.

Federal legislation
Pension plans
Pension Protection Act 2006-US