[Congressional Record Volume 152, Number 106 (Thursday, August 3, 2006)]
[Senate]
[Pages S8828-S8829]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH (for himself and Mrs. Lincoln):
  S. 3815. A bill to improve the quality of, and access to, long-term 
care; to the Committee on Finance.
  Mr. SMITH. Mr. President, I rise today to introduce the Long-Term 
Care Quality and Modernization Act of 2006. I am pleased to be joined 
by my colleague, Senator Blanche Lincoln of Arkansas.
  As chairman of the Senate Special Committee on Aging, I am committed 
to improving the financing and delivery of long-term care. The Centers 
for Medicare and Medicaid Services estimate that national spending for 
long-term care was almost $160 billion in 2002, representing about 12 
percent of all personal health care expenditures. While those numbers 
are already staggering, we also know that the need for long-term care 
is expected to grow significantly in coming decades. Almost two-thirds 
of people receiving long-term care are over age 65, with this number 
expected to double by 2030.
  I know that providing quality long-term care services for America's 
frail, elderly, and disabled is the priority of

[[Page S8829]]

nursing homes and assisted-living facilities. I applaud their work but 
recognize we must do more to improve care and contain costs. When you 
consider that 8 of 10 nursing home residents rely on Medicare and 
Medicaid for their long-term care needs, it is apparent that Congress 
has a responsibility to improve these programs so they are sustainable 
for years to come.
  That is why I am introducing the Long-Term Care Quality and 
Modernization Act of 2006 with Senator Lincoln. This bill will address 
several problems nursing homes are experiencing with payments, 
regulations, workforce shortages, taxes, and disaster preparedness 
funding. The issue of long-term care expenditures need not be an 
insurmountable task. It will require action and cooperation by public 
officials and private providers as we work to find ways to help 
Americans become better prepared for their long-term care needs.
  However, we cannot do it alone. Individuals must take responsibility 
and begin planning for their long-term care needs. With our national 
savings rate in steady decline, I fear the American middle class is 
woefully unprepared to meet the coming challenges of their long-term 
care. As we move forward in our effort to help individuals stay 
financially stable in their later years, we must encourage them to 
purchase long-term care insurance and save for long-term care services. 
Included in the bill I am introducing today is the Long-Term Care Trust 
Account Act of 2006. My legislation will create a new type of savings 
vehicle for the purpose of preparing for the costs associated with 
long-term care services and purchasing long-term care insurance. An 
individual who establishes a long-term care trust account can 
contribute up to $5,000 per year to their account and receive a 
refundable 10 percent tax credit on that contribution. Interest accrued 
on these accounts will be tax free, and funds can be withdrawn for the 
purchase of long-term care insurance or to pay for long-term care 
services. The bill will also allow an individual to make contributions 
to another person's long-term care trust account. This will help many 
people in our country who want to help their parents or a loved one 
prepare for their health care needs.
  It is my hope that this legislation will help all Americans save for 
their long-term care needs. I urge my colleagues on both sides of the 
aisle to support this important bill.
                                 ______