[Congressional Record (Bound Edition), Volume 150 (2004), Part 9]
[Extensions of Remarks]
[Page 11564]
[From the U.S. Government Publishing Office, www.gpo.gov]




                INTRODUCING THE LONG-TERM CARE (LTC) ACT

                                 ______
                                 

                             HON. LEE TERRY

                              of nebraska

                    in the house of representatives

                         Thursday, June 3, 2004

  Mr. TERRY. Mr. Speaker, I rise today to call the House's attention to 
the Long-term Care (LTC) Act. This act, which was introduced today by 
myself and nine bi-partisan cosponsors, would allow individuals to use 
their IRAs, 401(k), and 403(b) plans to purchase long-term care 
insurance with pretax dollars at any age and without early withdrawal 
penalty. Under the LTC Act, the consumer has the option to purchase LTC 
insurance at the most appropriate amounts for their needs for 
themselves and their spouses.
  Preparing for future costs of health care is something that every 
American should be doing. Long-term care insurance is one way for 
Americans to plan for periods of extended disability without burdening 
their families, going bankrupt, or relying on government assistance.
  Nineteen percent of seniors over 65 years old and 55 percent of those 
85 years and older require long-term care--the personal assistance that 
enables impaired people to perform daily routines such as eating, 
bathing, and dressing. This care is expensive:
  For nursing home care, the nationwide average cost of care is $181.24 
a day; for assisted living, the nationwide average cost of care is 
$78.21 a day; and for home care, the nationwide average cost of care is 
$18.12 a day.
  Further, Medicare covers only 14 percent of long-term care 
expenditures while traditional health insurance programs typically do 
not cover daily living assistance costs for long periods of time. 
Poverty is required to qualify for Medicaid. This Catch 22 causes many 
Americans who become chronically ill to spend their entire life savings 
at a time when they need it most.
  Last year, Congress passed and President Bush signed into law 
legislation creating Health Savings Accounts (HSAs) which allows the 
public to set up reserves to use for medical purposes, like the 
purchase of LTC insurance. This was a great step toward consumer-
directed health care; however, as Baby Boomers retire, the number of 
individuals age 65 and older will double and most will not have the 
advantage of building an HSA to provide for the purchase of LTC.
  The LTC Act is a low-cost, common sense approach to providing long-
term care to more Americans. It is not a solution for all retirees. But 
it is one more tool to provide all Americans with adequate health 
insurance coverage, the freedom to use their own resources how they 
determine, and to reduce costs to the government under Medicaid.
  Thank you, Mr. Speaker. I yield back the balance of my time.

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