[Congressional Record Volume 151, Number 81 (Friday, June 17, 2005)]
[Extensions of Remarks]
[Pages E1264-E1265]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              THE LONG TERM CARE SUPPORT AND INCENTIVE ACT

                                 ______
                                 

                          HON. SUSAN A. DAVIS

                             of california

                    in the house of representatives

                        Thursday, June 16, 2005

  Mrs. DAVIS of California. Mr. Speaker, I rise today to talk about an 
important issue facing our community: the affordability of long-term 
care. People today are living longer and healthier lives than ever 
before.
  When the Declaration of Independence was signed, the average life 
expectancy was 23. In the United States today, life expectancy is 83 
years.

[[Page E1265]]

  While this increased life expectancy is allowing us to live fuller 
lives, it is also presenting us with serious financial challenges. It 
is estimated that more than 40 percent of those who turn 65 will spend 
some time in a nursing home. Long-term care is expensive. On average, a 
year's nursing home charges can range from $60,000 to $70,000.
  My own family had to make difficult emotional and financial decisions 
when my father needed care. My dad was a pediatrician, and always lived 
a full life. When he needed care, my sisters and I struggled to find 
the perfect place for him to live.
  We wanted to make sure he was happy and received high quality medical 
care. We searched for months to find the right place for our dad and we 
learned very quickly how expensive long-term care is.
  My experience with my dad renewed my commitment to improve our long-
term care system. I took on this mission in Congress and I am pleased 
today to reintroduce the Long Term Care Support and Incentive Act. This 
much needed legislation will make a real difference for San Diegans 
caring for older family members.
  First, the bill will give a $4,000 tax credit for seniors with long-
term care needs and their caregivers. We know how many sacrifices 
families make to take care of their loved ones. They miss work, or in 
some cases are forced to give up their jobs. They pay for expensive 
medical supplies and equipment, and bare the burden of enormous medical 
bills. This tax credit will help ease their financial burden.

  The second section of my legislation will establish a tax deduction 
for long-term care insurance premiums. As the long-term care needs in 
our community increase, we must face the reality that many seniors do 
not have family or friends to take care of them full time.
  This is particularly important to women. Women live longer than men. 
Often times, women are the primary caregivers for their husbands. After 
their husbands pass away, there is often no one around to take care of 
them.
  Long-Term Care Insurance can help fill this gap, but premiums can be 
expensive. My legislation will make long-term care insurance more 
affordable by allowing individuals over 65 to deduct 75 percent of the 
cost of their premiums and individuals under 65 to deduct 50 percent of 
the cost of their premiums.
  In addition, I have included several important consumer protections 
in the bill to ensure that people are purchasing responsible insurance 
plans that will adequately meet their long-term care needs.
  The bill requires plans to include: Mandatory Inflation Protection, A 
Lifetime Deductible Requirement that ensures policy holders must only 
pay their deductible one time in their lifetime, Mandatory 
Interchangeablity so that individuals can determine where their 
benefits are spent, A Care Coordination program that ensures seniors 
receive assistance in planning and securing the services they need.
  By encouraging people to plan ahead for the future and purchase Long-
Term Care Insurance, we can ensure that seniors live dignified and 
independent lives. I urge all of my colleagues in Congress to work with 
me to pass it quickly into law.

                          ____________________