[Congressional Record Volume 153, Number 126 (Thursday, August 2, 2007)]
[Senate]
[Pages S10816-S10817]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH (for himself, Mrs. Lincoln, and Ms. Collins):
  S. 1980. 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 2007. I am pleased to be joined 
by my

[[Page S10817]]

colleague Senator Blanche Lincoln of Arkansas.
  As Ranking Member 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 services are over 
age 65, with this number expected to double by 2030.
  Providing quality long-term care services for America's frail, 
elderly and disabled is the priority of 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 eight of ten 
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 2007 with Senator Lincoln. This bill will address 
several problems nursing homes are experiencing with federal 
regulations, workforce shortages and taxes related to building 
depreciation. 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 this coming challenges. 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.
  Today, millions of Americans are receiving or are in need of long-
term care services and supports. Surprisingly, more than 40 percent of 
persons receiving long-term care are between the ages of 18 and 64. 
Some were born with disabilities; others came to be disabled through 
accident or illness. No one can predict their future long-term health 
care needs. Therefore, everyone needs to be prepared.
  Included in the bill I am introducing today is The Long-Term Care 
Trust Account Act of 2007. 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 also will allow an individual to make contributions 
to another family members' 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.
                                 ______