[Congressional Record (Bound Edition), Volume 154 (2008), Part 3]
[Extensions of Remarks]
[Pages 4447-4448]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   LONG TERM CARE AND RETIREMENT ACT

                                 ______
                                 

                          HON. ADAM H. PUTNAM

                               of florida

                    in the house of representatives

                         Friday, March 14, 2008

  Mr. PUTNAM. Madam Speaker, due to advancements in technology and 
health care, people are living longer than ever. As a result, the 
United States is experiencing a rapidly aging population due to the 
baby boomers, those born from 1946 to 1964. Florida leads the United 
States in aging population. According to the American Association of 
Retired People, AARP, in 2005 Florida was ranked number one in the 
highest population above the age of 65 at 16.8 percent. AARP estimates 
that Florida will continue to be ranked number one in this category and 
by 2020 21.8 percent of Floridians will be above the age of 65.
  Long-term care can be provided in a few different ways. According to 
the National Long-Term Care Study, NLTCS, 60 percent of those over the 
age of 65 live alone, increasing their need for long-term care. With 
regard to nursing homes, a study by the U.S. Department of Health and 
Human Services found that people who reach age 65 have a 40 percent 
chance of entering a nursing home. About 10 percent of the people who 
enter a nursing home will stay there 5 years or more. More than nursing 
homes, adult children or grandchildren are

[[Page 4448]]

cited as the main caregivers to the elderly population. According to 
research conducted by the American Association of Retired People, AARP, 
two-thirds of older people with disabilities relied solely on 
``informal'' help; approximately 75 percent of which was unpaid care 
from friends and family. With the leading elderly percent population in 
the country, 13.8 percent of Florida citizens 18 and above are 
caregivers. The AARP found that the total economic value of this type 
of caregiving was $350 billion in 2006, which is more than what was 
spent on all ``formal,'' hospice, paid caregiver, nursing home, etc. . 
. . long-term care, including both institutional and home and 
community-based services.
  Long-term care is a variety of services that includes medical and 
non-medical care to people who have a chronic illness or disability. 
Long-term care can be provided at home, in the community, in assisted 
living, or in nursing homes. While long-term care is often used for the 
elderly, it is important to remember that you may need long-term care 
at any age.
  While there are a variety of ways to pay for long-term care, it is 
important to think ahead about how you will fund the care you get. 
Generally, Medicare doesn't pay for long-term care. Medicare pays only 
for medically necessary skilled nursing facility or home health care.
  With an ever aging population and the variety of services provided by 
long-term care, most families at one point or another are forced to 
make a decision regarding the future of a loved one who needs 
assistance with everyday living. These decisions are limited and 
costly, and many find themselves struggling between the high price of 
institutionalization or informal family care. In an effort to alleviate 
the financial and emotional burden that families find themselves under, 
I have introduced the Long-term Care Retirement and Security Act of 
2008.
  This legislation would amend the Internal Revenue Code to allow a 
deduction for eligible long-term care insurance premiums for a taxpayer 
and the taxpayer's spouse and dependents; and a credit for eligible 
caregivers caring for certain individuals with long-term care needs. 
This legislation has three provisions. The first two detail the major 
elements of the legislation regarding deductions and credits. The final 
part of the bill deals with consumer protections. Specifically this 
legislation would:
  Permit individuals to make a tax deduction in an amount equal to the 
``applicable percentage'' of eligible long-term premiums. An 
``Applicable Percentage'' is defined as 25 percent in 2009/2010, 35 
percent in 2011, 65 percent in 2012, and 100 percent thereafter.
  These dedications would create incentives for individuals and by 2017 
the number of individual LTC policy holders will increase by 9 percent 
and 8 percent of individuals will increase the richness of their 
policy.
  Require coordination of deductions and prohibits an individual from 
making the same deductions twice.
  Permit long-term care deductions to be made under cafeteria plans and 
flexible spending arrangements.
  Under cafeteria plans 12 percent increase in the number of active 
employees with LTC policies by 2017, as well as, flexible spending 
accounts creating an incentive for individuals to enroll in FSAs and 
use their funds towards LTC.
  Establish an ``applicable credit'' for caregivers of those with long-
term care needs. An ``applicable credit'' refers to $1,500 in 2009, 
$2,000 in 2010, $2,500 in 2011, and $3,000 for 2012 and thereafter. The 
applicable credit is multiplied by the number of individuals with 
respect to whom the taxpayer is an eligible caregiver.
  Establish consumer protections based on the National Association of 
Insurance Commissioners recommendations for qualified long-term care 
policies.
  Creating incentives and helping families to afford long-term care 
insurance will encourage many more Americans to take personal 
responsibility for their long-term care needs, not only providing more 
LTC coverage for Floridians but preserving public funds for those who 
need them.
  I urge my colleagues to cosponsor and support this important tool for 
all Americans' financial and health security.

                          ____________________