[Congressional Record Volume 141, Number 171 (Wednesday, November 1, 1995)]
[Extensions of Remarks]
[Page E2083]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



               E X T E N S I O N S   O F   R E M A R K S


[[Page E 2083]]


              THE COMPREHENSIVE LONG-TERM-CARE ACT OF 1995

                                 ______


                     HON. DOUGLAS ``PETE'' PETERSON

                               of florida

                    in the house of representatives

                      Wednesday, November 1, 1995

  Mr. PETERSON of Florida. Mr. Speaker, in recent weeks, much has been 
said in this Congress about deficit reduction. Integrated into the 
debate on balancing the Federal budget is the fate of two of the most 
important social programs this Nation has ever created: Medicare and 
Medicaid. Tens of millions of Americans rely on at least one of these 
programs, and in many cases both, to meet even their most basic health 
care needs.
  Unfortunately, the skyrocketing cost of health care in this country, 
coupled with America's changing demographics, has caused a dramatic and 
unsustainable growth in the cost of these programs. It is simply 
indisputable that we can never make more than a dent in the budget 
deficit facing our children unless we seriously address reform of our 
health care system. Clearly, Medicare and Medicaid need reform now.
  Some in this Chamber seem to believe they have a quick and easy 
solution to the problems confronting these programs. However, many of 
us here in this body understand in our hearts that there is no easy 
solution. Our choices are difficult, and many are politically 
unpopular. Simply making draconian cuts in Medicare in order to meet 
arbitrarily chosen budget targets is not sound policy, nor is packaging 
Medicaid up into a block grant and shipping it off to the States.

  For this reason, I am today introducing the Comprehensive Long-Term 
Care Act of 1995. This bill compliments H.R. 2071, the Health Care 
Improvement Act, which I introduced in July of this year. That bill, 
which makes sensible reforms to the American health care system and the 
acute care side of Medicaid, currently has 14 cosponsors.
  The Long-Term Care Act makes bold reforms to the long-term care side 
of Medicaid by adding a new home- and community-based program, and 
expanding eligibility those with incomes up to 100 percent of the 
Federal poverty level. The nursing home and institutional portion of 
the Medicaid Program will be similar to the current Medicaid Program, 
with eligibility expanded to those with incomes up to 100 percent of 
poverty. Also, improvements are made with regard to the financial and 
disability eligibility determination criteria for all beneficiaries, as 
well as in the asset spend-down protections and personal needs 
allowance.
  Importantly, this bill also contains unprecedented tax relief for the 
purchase of private long-term care insurance. Under the Comprehensive 
Long-Term Care Act, private long-term care insurance premiums are tax-
deductible, and employer-provided long-term care insurance is excluded 
from an employee's taxable income. And funds drawn from a retiree's IRA 
or 401(k) trust plan that are used for the purchase of long-term care 
insurance will not be subject to taxation. These bold changes will go a 
long way toward lowering future Federal expenditures on public long-
term care programs by ensuring that the number of Americans with 
private long-term-care insurance is greatly expanded.
  These incentives for the purchase of private long-term care insurance 
assure that public funds for Medicaid are directed at those who need 
them the most--those who cannot afford to pay for themselves. The new 
State funding distribution formula will also ensure that every State 
receives an equitable amount of Federal funding based on the State's 
number of eligible beneficiaries and ability to match the Federal 
share.
  It is my hope that the introduction of this bill will help move the 
debate about how to lower the cost of Medicare and Medicaid in the 
direction of serious reform--not arbitrary cuts. I encourage my 
colleagues to join me in this effort.

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