[Congressional Record Volume 144, Number 59 (Tuesday, May 12, 1998)]
[Senate]
[Pages S4728-S4729]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




SENATE CONCURRENT RESOLUTION 95--EXPRESSING THE SENSE OF CONGRESS WITH 
   RESPECT TO PROMOTING COVERAGE OF INDIVIDUALS UNDER LONG-TERM CARE 
                               INSURANCE

  Mr. DODD (for himself and Mr. Grassley) submitted the following 
concurrent resolution; which was referred to the Committee on Finance:

                            S. Con. Res. 95

       Resolved by the Senate (the House of Representatives 
     concurring),

     SECTION 1. PROMOTION OF COVERAGE OF INDIVIDUALS UNDER LONG-
                   TERM CARE INSURANCE.

       (a) Findings.--The Congress finds the following:
       (1) As the baby boom generation begins to retire, funding 
     Social Security and Medicare will put a strain on the 
     financial resources of younger Americans.
       (2) Medicaid was designed as a program for the poor, but in 
     many States Medicaid is being used for middle income elderly 
     people to fund long-term care expenses.
       (3) In the coming decade, people over age 65 will represent 
     up to 20 percent or more of the population, and the 
     proportion of the population composed of individuals who are 
     over age 85, who are most likely to be in need of long-term 
     care, may double or triple.
       (4) With nursing home care now costing $40,000 to $50,000 
     on average per year, long-term care expenses can have a 
     catastrophic effect on families, wiping out a lifetime of 
     savings before a spouse, parent, or grandparent becomes 
     eligible for Medicaid.
       (5) Many people are unaware that most long-term care costs 
     are not covered by Medicare and that Medicaid covers long-
     term care only after the person's assets have been exhausted.
       (6) Widespread use of private long-term care insurance has 
     the potential to protect families from the catastrophic costs 
     of long-term care services while, at the same time, easing 
     the burden on Medicaid as the baby boom generation ages.
       (7) The Federal Government has endorsed the concept of 
     private long-term care insurance by establishing Federal tax 
     rules for tax-qualified policies in the Health Insurance 
     Portability and Accountability Act of 1996.
       (8) The Federal Government has ensured the availability of 
     quality long-term care insurance products and sales practices 
     by adopting strict consumer protections in the Health 
     Insurance Portability and Accountability Act of 1996.
       (b) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) the Federal Government should take all appropriate 
     steps to inform the public about the financial risks posed by 
     rapidly increasing long-term care costs and about the need 
     for families to plan for their long-term care needs;
       (2) the Federal Government should take all appropriate 
     steps to inform the public that Medicare does not cover most 
     long-term care costs and that Medicaid covers long-term care 
     costs only when the beneficiary has exhausted his or her 
     assets;
       (3) the Federal Government should take all appropriate 
     steps not only to encourage employers to offer private long-
     term care insurance coverage to employees, but also to 
     encourage both working-aged people and older citizens to 
     obtain long-term care insurance either through their 
     employees or on their own;
       (4) appropriate committees of Congress, together with the 
     Department of Health and Human Services and other appropriate 
     Executive Branch agencies, should develop specific ideas for 
     encouraging Americans to plan for their own long-term care 
     needs;
       (5) the congressional tax-writing committees, together with 
     the Department of the Treasury should determine whether the 
     tax rules for long-term care insurance need to be modified to 
     ensure that the rules adequately facilitate the affordability 
     of long-term care insurance; and
       (6) the National Summit on Retirement Income Savings should 
     consider the importance of planning for long-term care in its 
     discussion of retirement security.

  Mr. DODD. Mr. President, I am pleased to submit, with my colleague 
Senator Grassley, a Senate resolution that will focus attention on an 
extremely important health care issue for American families--long-term 
care needs.
  Rapidly increasing long-term care costs pose huge financial risks to 
families. With the average cost of nursing home care at $40,000 per 
year, early planning is required to ensure that long-term care needs 
don't leave the spouses or children of the elderly and disabled 
destitute.
  What most Americans do not realize is that Medicare is very limited 
in the type of long-term costs it covers. Medicare only provides 
coverage for ``acute'' health care costs, such as short-term stays in 
certain kinds of nursing homes, or short-term nursing care in the home 
following a hospitalization. Medicare was never meant to cover chronic 
long-term health needs.
  Medicaid does offer assistance with long-term costs, but only after 
an individual has totally exhausted his or her assets. This means that 
families must become completely impoverished in order to get Medicaid 
coverage for nursing home care.
  What fills in the gaps? We know that sixty-five percent of many 
elderly who live at home and need help rely exclusively on unpaid 
sources, such as family and friends. But this help is not without a 
price--it takes a huge toll on families. Caregiving frequently competes 
with the demand of employment and requires caregivers to reduce work 
hours, take time off without pay, or quit their jobs. Families whose 
members must be in institutional settings often exhaust all of their 
resources paying privately for nursing home care.
  As a country, we need to have better alternatives so that our Golden 
Years can be lived out with dignity. Our job as policy makers is to 
inform the public of the importance of planning ahead. Employers need 
to be encouraged to make private long-term care insurance coverage 
available to their employees. In turn, families should be encouraged to 
prepare themselves financially well in advance for this potential 
expense.
  A similar proposal by my fellow Connecticut colleague in the House of 
Representatives, Congressman Chris Shays, has received strong bi-
partisan support. My hope is that this commonsense, forward-looking 
proposal will receive the same kind of support by my colleagues here in 
the Senate. This Senate resolution truly represents an investment in 
our future.
  Mr. GRASSLEY. Mr. President, today I am pleased to join Senator Dodd 
in submitting a common-sense Senate resolution to raise public 
awareness of the need for all Americans to plan ahead for their long-
term care needs.
  Earlier this year, the Special Committee on Aging, which I chair, 
held a hearing to explore the challenges of providing long-term care 
for the baby boomer generation. A key message from that hearing was 
that policy makers need to encourage personal responsibility for 
financing long-term care.
  It is difficult to pay for long-term care even when one has worked 
hard and saved for retirement. It's impossible when a family is not 
prepared. Unfortunately, many seniors and their families find out too 
late that they have not saved enough. Today's average cost of nursing 
home care is about $40,000 a year. When individuals are faced with a 
chronic or disabling condition in retirement, they often quickly 
exhaust their resources. As a result, these individuals turn to 
Medicaid for help. In fact, the care for nearly 2 out of every 3 
nursing home residents is paid for by Medicaid.
  As policy makers, our job is to develop policies for public programs 
that can deliver efficient and cost-effective services. Yet, equally 
important is the role of private long-term care financing. We must 
inform everyone about the importance of planning for potential long-
term care needs. And, we must provide incentives now for the baby 
boomer generation to prepare financially for their retirement.
  As Congress works to prepare for a growing demand for long-term care 
services, the role of private long-term care insurance must not be 
ignored. Over the past ten years, the long-term care insurance market 
has grown significantly. The products that are available today are 
affordable and of high quality.
  This common-sense proposal has also been introduced in the House of 
Representatives by Congress Shays where it has received strong bi-
partisan support. I encourage my colleagues in the

[[Page S4729]]

Senate to so-sponsor this worthwhile proposal. And, I look forward to 
the passage of this resolution this year.

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