US President Barack Obama has extended his support to a new social insurance programme that would help people deal with long-term care costs associated with in-home or nursing home services.

The new Community Living Assistance Services and Supports Act (CLASS Act) would allow workers to choose whether they would like a monthly deduction from their pay cheques to go towards their care when they get old or become disabled, reports.

The CLASS Act would save the government money as it would delay people moving into nursing homes, a recent Congressional Budget Office analysis said.

Supporters of the legislation argue the estimated savings of $58bn over ten years would help pay for expensive healthcare expansion.