[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.
____________________