[Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (2000, Book II)]
[September 19, 2000]
[Pages 1866-1868]
[From the U.S. Government Publishing Office www.gpo.gov]
Statement on Signing Legislation on Long-Term-Care Insurance for Federal
Employees and Retirees and Members of the Armed Forces
September 19, 2000
Today I am pleased to sign into law H.R. 4040, the ``Long-Term Care
Security Act.'' It includes two titles--the ``Long-Term Care Security
Act'' and the ``Federal Erroneous Retirement Coverage Corrections Act.''
This bill authorizes the creation of a new program of group long-term
care insurance for Federal employees and annuitants, active and retired
members of the uniformed services, employees and annuitants of the U.S.
Postal Service and the Tennessee Valley Authority, and relatives of
these individuals. It also provides for a more equitable way to correct
certain retirement coverage errors affecting thousands of Federal
employees and their families.
Addressing the needs of an aging society has been one of my highest
priorities. The retirement of the baby boom generation will have
profound effects not only on Medicare and Social Security but on long-
term care. Millions more seniors will need care from home and community-
based providers, nursing homes, and families. Yet, today's system is a
patchwork that often does not serve the needs of people with chronic
illnesses. To address this, I announced a multi-pronged long-term care
initiative in early 1999. It tackles the complex problem of long-term
care through: (1) creating a $3,000 tax credit to help people with long-
term care needs or the families who care for them; (2) providing funding
for services that support family caregivers of older persons; (3)
improving equity in Medicaid eligibility for people in home- and
community-based settings; (4) encouraging partnerships between low-
income housing for the elderly and Medicaid; and (5) encouraging the
purchase of quality private long-term care insurance by Federal
employees. H.R. 4040, which
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is bipartisan, consensus legislation, implements the portion of the
initiative concerning long-term care insurance for Federal employees.
It will improve the availability and quality of private long-term
care insurance by allowing, for the first time, families of Federal
employees to access a high-quality, affordable long-term care insurance
option through the Office of Personnel Management (OPM). The OPM will
contract for benefits with one or more private contractors, enabling the
agency to obtain the best value for the entire Federal family. The OPM
will ensure that policies have important consumer protections that are
generally not available in individual insurance policies, such as full
portability, and that enrollees will have the option to purchase
policies that include inflation and non-forfeiture protections. By using
the size of the Federal workforce family--about 13 million people--as
leverage, the Federal Government will be able to provide long-term care
insurance at group rates expected to be 15 to 20 percent lower than
individual rates. Coverage will be provided for a range of services,
including personal care, home health care, adult day care, and nursing
home care.
Our hope is that, by making high-quality private long-term care
coverage available to the Federal family at negotiated group rates, we
will continue to serve as a model to other employers across the Nation.
This policy is also the most responsible next step in promoting private
long-term care insurance. Building on the financial incentives I signed
into law in 1996, this policy will increase both the number of people
with long-term care coverage and the quality of such coverage--
increasing confidence in this growing market as people start planning
for their own future long-term care needs.
The bill also provides a comprehensive solution to the problems
faced by many Federal employees and their families who, through no fault
of their own, are affected by retirement coverage errors. Unlike current
law, which directs how coverage errors will be corrected, it permits
those placed in the wrong retirement coverage to choose the coverage
that best serves their needs and preferences. This new authority to
correct erroneous retirement enrollments and the new long-term care
insurance program will greatly enhance the quality of life for Federal
employees and members of the Armed Forces. I applaud the bipartisan
congressional coalition and OPM Director Lachance for their yeoman efforts in developing and passing this
important bill.
In approving H.R. 4040, I note that section 1002 of the bill (new
section 9003(d)(3) of title 5, U.S. Code) provides that ``the President
(or his designee) shall submit to [specified congressional committees] a
written recommendation as to whether the program . . . should be
continued without modification, terminated, or restructured.'' The
Recommendations Clause of the Constitution provides that the President
``shall from time to time . . . recommend to [Congress] . . . such
Measures as he shall judge necessary and expedient.'' That Clause
protects the President's authority to formulate and present his own
recommendations, which includes the power to decline to offer any
recommendation. Accordingly, to avoid any infringement on the
President's constitutionally protected policy-making prerogatives, I
shall construe this provision not to extend to the submission of
recommendations that the President finds it unnecessary or inexpedient
to present.
It gives me great pleasure to sign H.R. 4040 into law. I welcome the
opportunity to offer Federal employees, members of the Armed Forces, and
their families, this additional option to care for their aging parents,
and let their children care for them with dignity and financial
security. I look forward to working with the Congress to pass the other
critical elements of my plan to improve long-term care for all
Americans.
William J. Clinton
The White House,
September 19, 2000.
Note: H.R. 4040, approved September 19, was assigned Public Law No. 106-
265.
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