[Congressional Record Volume 147, Number 42 (Tuesday, March 27, 2001)]
[Senate]
[Page S2995]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself and Mr. Graham):
  S. 627. A bill to amend the Internal Revenue Code of 1986 to allow 
individuals a deduction for qualified long-term care insurance 
premiums, use of such insurance under cafeteria plans and flexible 
spending arrangements, and a credit for individuals with long-term care 
needs; to the Committee on Finance.
  Mr. GRASSLEY. Mr. President, I rise today to introduce the Long-Term 
Care and Retirement Security Act. This legislation, which I sponsored 
in the 106th Congress with my distinguished colleague from Florida, 
Senator Bob Graham, would ease the tremendous cost of long-term care.
  The bill that Senator Graham and I are re-introducing today would 
allow individuals a tax deduction for the cost of long-term care 
insurance premiums. Increasingly, Americans are interested in private 
long-term care insurance to pay for nursing home stays, assisted 
living, home health aides, and other services. However, most people 
find the policies unaffordable. The younger the person, the lower the 
insurance premium, yet most people aren't ready to buy a policy until 
retirement. A deduction would encourage more people to buy long-term 
care insurance.
  Our proposal also would give individuals or their care givers a 
$3,000 tax credit to help cover their long-term care expenses. This 
would apply to those who have been certified by a doctor as needing 
help with at least three activities of daily living, such as needing 
help with at least three activities of daily living, such as eating, 
bathing or dressing. This credit would help care givers pay for medical 
supplies, nursing care and any other expenses of caring for family 
members with disabilities.
  The Van Zee family of Otley, Iowa, typifies many families who would 
benefit from his legislation. Renee Van Zee at 55 years old has early 
onset Alzheimer's disease. Three years after her diagnosis, she can't 
feed, bathe or dress herself. Her daughter, Leanna, and her husband, 
Albert, are pulling out all the stops to keep Mrs. Van Zee out of a 
nursing home. They care for her full-time. They've found some services 
through Medicaid and Medicare and received a donated hospital bed. Even 
so, caring for Mrs. Van Zee is difficult. She can't be left alone at 
any time. The family's network of services is piecemeal, like that of 
many families in similar straits. Those services could change with any 
change in their circumstances. The family bears considerable out-of-
pocket expenses for Mrs. Van Zee's nutritional supplements. The 
supplements cost $4.96 for a four-pack of cans. Mrs. Van Zee consumes 
two or three cans a day. It's obvious how this situation affects a 
family's finances. Working adults quit their jobs to care for a loved 
one, and take on a host of new expenses at the same time.
  The Long-Term Care and Retirement Security Act would help the 22 
million family caregivers like the Van Zees. A $3,000 tax credit would 
help to pay for Mrs. Van Zee's nutritional supplements or hire an extra 
nurse. The legislation also would help families like the Van Zees buy 
long-term care insurance. Someone like Mrs. Van Zee could have bought 
herself insurance years ago, had it been an affordable option for her.
  As it did last year, the bill that Senator Graham and I are 
introducing today has been endorsed by both the AARP and the Health 
Insurance Association of America. A companion bill sponsored by 
Representatives Nancy Johnson, Karen Thurman, and Earl Pomeroy is 
pending in the House of Representatives.
  An aging nation has no time to waste in preparing for long-term care, 
and the need to help people afford long-term care is more pressing than 
ever. I look forward to working with Senator Graham and our colleagues 
in the Senate to get our bill passed into law as soon as possible.
                                 ______