Legislation (S. 2225) designed to increase access to long-term care insurance was the topic of a September 13 hearing held by the Senate Special Committee on Aging. Sponsored by Committee Chair Charles Grassley (R-IA), the bill would provide tax incentives for the purchase of private long-term care policies and encourage insurance companies to institute flexible payment plans for purchasers. The bill also would provide a tax credit for those who purchase their own long-term care insurance.
Sen. Grassley expressed concern about insurance companies rapidly increasing premiums for long-term care policyholders. “My interest now is building greater accountability to consumers from those insurance companies who might jack up rates without saying so,” he said. He said that he intends to amend S. 2225 to “include a provision that protects consumers of these policies from unexpected and extreme rate hikes.” He added: “I plan to amend my bill as quickly as possible and hope for legislative success on the entire package this year.”
Dr. William Scanlon of the General Accounting Office (GAO) testified on a new report released by his agency on the costs and demand for long-term care insurance. As the baby-boom generation ages, he predicted, the need for affordable long-term care will increase significantly. “For women of the baby-boom generation, long-term care needs are an especially significant concern,” he told the committee, adding: “More than 7 out of 10 unpaid caregivers are currently women, three-quarters of nursing home residents 65 years and older are female, and two-thirds of home health care users are female. Given their longer life expectancies and the fact that married women usually outlive their spouses, many women face a higher risk of needing long-term care and not having a spouse as a caregiver.”
Congress has approved legislation (H.R. 4040) to assist federal and military employees with the purchase of long-term care insurance (see The Source, 7/31/00, p.1). The President is expected to sign the measure.
