[Weekly Compilation of Presidential Documents Volume 36, Number 38 (Monday, September 25, 2000)]
[Pages 2129-2130]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on Signing Federal Long-Term Care Insurance Legislation

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 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

[[Page 2130]]

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.