[Congressional Record Volume 158, Number 19 (Monday, February 6, 2012)]
[Extensions of Remarks]
[Page E141]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       FISCAL RESPONSIBILITY AND RETIREMENT SECURITY ACT OF 2011

                                 ______
                                 

                               speech of

                         HON. LAURA RICHARDSON

                             of california

                    in the house of representatives

                      Wednesday, February 1, 2012

       The House in Committee of the Whole House on the state of 
     the Union had under consideration the bill (H.R. 1173) to 
     repeal the CLASS programs:

  Ms. RICHARDSON. Madam Chair, I rise in strong opposition to H.R. 
1173, a bill that would repeal the Community Living Assistance Services 
and Supports program (CLASS). Instead of repealing the CLASS Act and 
leaving millions of Americans in need of long-term care with the status 
quo, Congress should be working together to improve the program.
  Madam Chair, the CLASS program was designed to provide Americans with 
a voluntary long-term care insurance program that would make long-term 
care more affordable and accessible. Statistics show that there are 
currently over 10 million Americans in need of long-term care; by 2020, 
that number is expected to grow to 15 million. We have an obligation to 
ensure that those in need of long-term care have affordable options 
available to them.
  The United States is facing a long-term care crisis. With the 
Nation's baby boomers nearing retirement, we can expect to see the 
number of seniors in need of long-term continue to rise in the coming 
years. Due to the high costs of obtaining long-term support services, 
it is estimated that there are 52 million unpaid caregivers--mostly 
relatives of those in need--providing long-term care in the home.
  In my district, there are over 115,000 seniors and 12,557 residents 
collecting Social Security disability insurance--most of whom will most 
likely need long-term care services at some point in their lifetime. In 
addition, there are 85,444 of my constituents who are nearing 
retirement age and would benefit from the peace of mind of having 
insurance coverage for long-term care.
  Each year, families pay more than $50 billion out-of-pocket to 
provide long-term support services to loved ones. Many of these 
families are already hard-pressed financially, but do not have any 
other options available to them. Working to fix the CLASS program will 
provide working adults a national, voluntary, and premium-financed 
insurance program for the purchase of long-term care services and 
supports. Instead of working to fix the CLASS Act, the Republican 
majority is trying to repeal this important program in its entirety.
  Madam Chair, it is estimated that about 70 percent of people over 65 
will require long-term care services at some point during their 
lifetime. Medicare covers only minimal long-term care services such as 
short-term skilled nursing care and limited home health services.
  Medicaid now accounts for nearly 50 percent of all long-term care 
spending nationwide. Unfortunately, Americans wishing to utilize 
Medicaid for long-term care services must impoverish themselves in 
order to qualify. In many cases, families are left with no choice but 
Medicaid after they are forced to spend down their income and assets to 
pay for costly long-term care services.
  Insurance policies in the private market which cover long-term care 
services are often too expensive for most Americans, and currently pay 
for only about 7 percent of spending on long-term care. Approximately 
only nine percent of Americans aged 50 or older have private insurance 
policies that cover long-term care services. The CLASS Act seeks to 
address the lack of available coverage by making long-term care 
services more accessible and affordable for working families.
  The CLASS Act provides a framework with which to build a viable long-
term care program. Repealing this much needed program brings us back to 
square one in our effort to provide working families with a national 
insurance program that enables them to plan for their long-term care 
needs.
  Madam Chair, this is just another GOP attempt to dismantle the 
Affordable Care Act one piece at a time. The American people deserve 
better and Congress needs to work together to ensure that Americans of 
all income levels have access to long-term care services in the event 
that they become necessary.
  Madam Chair, I urge my colleagues to vote against passage of this 
misguided legislation that simply ignores the need to address our 
Nation's long-term care crisis.

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