Bill Overview
Title: Public Safety Officer Health Improvement Act of 2022
Description: This bill allows eligible retired public safety officers who have not attained age 65 a tax credit for up to $4,800 of their costs for qualified health insurance premiums (i.e., premiums for coverage for eligible retired public safety officers, their spouses, and dependents by an accident or health plan or qualified long-term care insurance contract). It also provides for an inflation adjustment to the $3,000 exclusion amount for distributions from employer retirement plans to pay for the health and long-term insurance premiums of such public safety officers.
Sponsors: Sen. Bennet, Michael F. [D-CO]
Target Audience
Population: Retired public safety officers under the age of 65, their spouses, and dependents
Estimated Size: 300000
- The bill specifically targets retired public safety officers who are under the age of 65.
- It includes provisions that also affect the spouses and dependents of these officers, expanding the population impacted.
- Public safety officers include professions such as police officers, firefighters, and emergency medical technicians.
- The bill addresses the costs associated with health insurance premiums, which suggests that the target population might be sizable, given the commonality of such roles in communities.
- There is an additional focus on retirement plans and benefits, indicating the bill would impact those engaging with these specific financial products.
Reasoning
- Consideration was given to the budget constraints and target population to select interviewees. The budget is sufficient to cover a fraction of the target population, calculated on an average cost per person basis.
- Considering commonness, roles like police officers and firefighters are widespread, but retirees under 65 represent a smaller segment. We estimated that the overall coverage scope fits well within policy limits.
- Non-affected individuals were considered alongside those who'd benefit directly, ensuring a varied perspective. High-impact cases have dependents reliant on officer benefits.
- The policy's inclusion of spouses and dependents means some households will see compounded benefits, increasing certain individuals' wellbeing while also potentially expanding financial bandwidth (for example, buying better coverage than previously affordable).
Simulated Interviews
Retired Police Officer (Denver, CO)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- This policy is a wonderful relief. Health insurance costs have been a significant burden.
- If I can save money here, it means supporting my kids through college more comfortably.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 5 | 3 |
Retired Firefighter (Dallas, TX)
Age: 64 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 10/20
Statement of Opinion:
- It's great that this policy covers retired firefighters too. I could use the savings for other retiree expenses.
- I'm looking forward to fewer budget constraints due to insurance costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Retired EMT (Boston, MA)
Age: 58 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 6.0 years
Commonness: 8/20
Statement of Opinion:
- Healthcare costs are daunting with my condition. This policy could alleviate stress and help manage expenses.
- I wish it also covered non-traditional spouses sooner rather than later.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 2 |
Retired Police Officer (Chicago, IL)
Age: 62 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 14/20
Statement of Opinion:
- Well, it's good to see we aren't forgotten after retirement. The savings should provide a bit more wiggle room in my finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Retired Firefighter (San Francisco, CA)
Age: 55 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 5/20
Statement of Opinion:
- The policy support seems a bit limited since it excludes my partner. Still, any relief on premiums is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Retired EMT (Memphis, TN)
Age: 59 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 11/20
Statement of Opinion:
- I manage, but health costs do cut into savings. Anything to ease that burden would be helpful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 2 |
Retired Police Officer (Miami, FL)
Age: 61 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 13/20
Statement of Opinion:
- This policy doesn’t change much for me right now, since my spouse's job covers my health insurance. But it’s a good backup when he retires.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Retired Firefighter (Seattle, WA)
Age: 57 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 9/20
Statement of Opinion:
- It's tough balancing medical bills with our income. The tax credit would really help right now.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Retired Police Officer (Phoenix, AZ)
Age: 63 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 7.0 years
Commonness: 7/20
Statement of Opinion:
- Living on a fixed income means every dollar counts. This policy helps make those ends meet.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Retired EMT (Philadelphia, PA)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- Insurance costs are immense due to my wife's illness. I’m optimistically cautious about the savings this policy could bring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 2 |
Cost Estimates
Year 1: $1440000000 (Low: $1200000000, High: $1680000000)
Year 2: $1478400000 (Low: $1238400000, High: $1718400000)
Year 3: $1517952000 (Low: $1277952000, High: $1757952000)
Year 5: $1600005120 (Low: $1360005120, High: $1840005120)
Year 10: $1791574656 (Low: $1551574656, High: $2031574656)
Year 100: $58564166720 (Low: $56164166720, High: $60964166720)
Key Considerations
- The number of eligible retired public safety officers significantly below age 65 dictates total cost scope.
- The policy might need adjustments based on actual claim and utilization rates, which impact ongoing fiscal assessments.
- Healthcare inflation and changes in insurance market dynamics could heavily influence the exclusion adjustments and, thus, the fiscal balance.
- Coordination with existing programs and incentives is critical to avoid redundancies and ensure effective benefit delivery.