[Congressional Record Volume 148, Number 105 (Monday, July 29, 2002)]
[Extensions of Remarks]
[Pages E1451-E1452]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             IMPROVING ACCESS TO LONG-TERM CARE ACT OF 2002

                                 ______
                                 

                               speech of

                         HON. NANCY L. JOHNSON

                             of connecticut

                    in the house of representatives

                         Tuesday, July 23, 2002

  Mrs. JOHNSON of Connecticut. Mr. Speaker, I rise in support of the 
Improving Access to Long-Term Care Act because it is an important first 
step in encouraging personal responsibility for planning for and 
financing one's own LTC needs. Nearly 40% of us will need some form of 
LTC during our lives, but few of us plan for its costs. If we are going 
to slow the growth of Medicaid spending--currently, the primary payor 
of LTC expenses--and ease the burden of government on our children's 
generation, we must focus on developing sound private insurance 
products so families can provide for their own futures by protecting 
their assets to support them and giving them choices in LTC services.
  This bill will encourage the expansion of the LTC insurance market 
and strengthen consumer protections in LTC insurance policies. The 
market in this area is not mature, and these protections are extremely 
important to its development. Qualified LTC policies will have to meet 
requirements designed to protect purchasers, particularly seniors. 
Suitability standards, for example, attempt to assure that policies are 
suited to the purchaser's resources and needs.
  One aspect of this bill caused me concern and it is my hope that we 
will be able to re-evaluate the income guidelines for claiming the 
deduction and the limits on the deduction amount. For example, when 
this bill is fully phased in, a person with $20,000 income will get 7.5 
cents in subsidy for every premium dollar spent on LTC insurance. 
That's assuming they meet the asset test under the suitability 
requirements and that--at $20,000 income--they have sufficient tax 
liability for a deduction to matter.

[[Page E1452]]

  Because of the looming tidal wave of baby boomers that will age into 
the need for LTC services, I have been introducing LTC insurance 
premium deductibility legislation for over four years. My previous 
bills have also included a tax credit to offset the costs of caregiving 
for families that provide LTC assistance for a family member.
  HIAA and the AARP have been strong supporters of that legislation. 
They have educated Members and 205 of you have co-sponsored that bill. 
While I will continue to fight for passage of a deduction that is not 
limited to lower income, and for a full credit for caregiver expenses, 
I support H.R. 4645 tonight because it is a first step toward that 
goal. In addition, it will put in place the consumer protections we 
need in the LTC insurance market, and these protections will be 
available to all purchasers of LTC insurance who access one of the 
other tax code incentives that incorporate the definition of 
``qualified LTC insurance policy''.
  This bill will encourage personal responsibility for private 
financing of LTC expenses and support the development of the LTC 
insurance market.

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