|
Saturday, October 11, 2008 |  |
  |
Long Term Care
At Issue
Long-Term Care insurance is a means of privately financing long-term care needs, such as extended nursing home care,
assisted living facilities, or home care,
all of which are usually not covered by Medicare.
As the generation of baby boomers ages, an increasingly large number of people will require long-term care,
but many have not planned for it, thinking they can leave the financial burden to the government.
Yet, as government-funded medical expenses continue to rise, programs such as
Medicaid and Medicare face funding crises.
Long-Term Care insurance will continue to grow in importance and popularity in order to combat the
rising costs of
government-sponsored health care.
NAHU's Position
NAHU believes that consumers should be encouraged to purchase the Long-Term Care policy of their choice. Federal Long-Term Care purchasing incentives are necessary to reduce Medicaid spending and provide Americans with the ability to afford such care when it is necessitated by medical circumstances. Purchasing incentives such as making Long-Term Care insurance available through Section 125 cafeteria plans and above-the-line tax deductions for Long-Term Care premiums are strongly supported by NAHU. Also, consumers should be made aware of any potential tax consequences of policies. The aging baby boomers will require long-term care in an increasing number; these individuals will be best served and the government's burden will be minimized if the purchase of private Long-Term Care insurance policies is encouraged by public policy and tax policy.
NAHU's Action
Federal InvolvementIRS Announces Increased Deductibility Limits for Long-Term Care Insurance
NAHU's long-term care working group is actively working to educate lawmakers and the public about the importance of private long-term care insurance. Some of the resource materials NAHU has developed on this topic include:
- NAHU Position on Long-Term Care Insurance
- State-Level Long-Term Care Tax Incentive Legislation - Part 1 | Part 2
- Laws Related to Long-Term Care Insurance
Legislative Action
The following legislation is pending in Congress and if implemented would provide incentives for private planning for long-term care expenses through use of long-term care insurance.
The House of RepresentativesLegislation concerning long-term care was introduced on August 3, 2007 by Representatives Earl Pomeroy (D-ND), Jim Ramstad (R-MN), Allyson Schwartz (D-PA), and Kenny Hulshof (R-MO). The Long-Term Care Affordability and Security Act, H.R. 3363, would permit long-term care insurance to be included in employer-sponsored cafeteria plans and flexible spending accounts, enabling people to pay long-term care insurance premiums using pre-tax dollars. Additionally, consumer protections for long-term care are provided under this bill.
The Senate
Similar legislation has been introduced in the Senate: Senate Bill 2337 was introduced on November 13, 2007
and has been referred to the Committee on Finance. S. 2337 is sponsored by Senator Chuck Grassley (R-IA).
In 1996, through provisions contained in the Health Insurance Portability and Accountability Act (HIPAA), Congress made a portion of certain types of long-term care insurance premiums tax deductible.
| Age | Maximum Deductible Limit - 2008 | |
| Per Individual | Per Couple | |
| Under 40 | $310 | $560 |
| 41 to 50 | $550 | $1,060 |
| 51 to 60 | $1,110 | $2,120 |
| 61 to 70 | $2,950 | $5,660 |
| Over 70 | $3,680 | $7,060 |
Additional Resources
LTC Advisory GroupClick here for group members and their contact information.
New LTCi Buyer and Non-buyer Study
Click Here for AHIP's coverage on Long-Term Care including testimony by AHIP President and CEO Karen Ignagni on “LTC and Medicaid,” as well as long-term care success stories and a brief on LTC.
HHS LTC Awareness program announces Phase II following a successful Phase I program. The demonstration project is seeking up to 10 new states to receive information about LTC options through a letter from their Governor.
Genworth Financial 2007 Cost of Care Survey - Nursing Homes, Assisted Living Facilities and Home Care Providers
The Long-Term Care Consumer Awareness Campaign Project is jointly funded by the Centers for Medicare and Medicaid Services and the U.S. Department of Health and Human Services.
“Own Your Future” - The Long-Term Care Awareness Campaign Demonstration Project sponsored by the U.S. Department of Health and Human Services, the National Governors Association and the National Conference of State Legislatures
Study of Nursing Home and Home Care Costs: Does Long-Term Care Insurance Make a Difference? - Sponsored by MetLife (September 2004)
2004 Index of the Long-Term Care Uninsured - LTC Financing Strategy Group (April 28, 2004)
A Shopper's Guide to Long-Term Care Insurance - National Association of Insurance Commissioners
Myths and Realities Concerning the Tax Status of Non Tax-Qualified Long-Term Care Insurance Plans
GAO Report: Medicaid Home and Community Services for the Elderly Individuals Varies Considerably
Tax Deductibility of Long-Term Care Insurance Premiums: Implications for Market Growth and Public LTC Expenditures Marc A. Cohen, Ph.D. and Maurice Weinrobe, Ph.D. March 2000.
Federal Long-Term Care Insurance Program Website - U.S. Office of Personnel Management
Center for Long-Term Care Financing
General Information on Insurance for Seniors - Prepared by SeniorResource.com
Home Health Quality Initiative (Centers for Medicare & Medicaid Services) - For the first time, home health quality measures are available to consumers to help them choose a home health agency. Home Health Quality Measures are now available for home health agencies nationwide.
Testimonies
Medicaid Testimonies.
For more information, please contact John Greene.
Content copyright © 1998-2008 National Association of Health Underwriters. All rights reserved.
National Association of Health Underwriters · 2000 North 14th Street, Suite 450 · Arlington, VA 22201
703.276.0220 · fax 703.841.7797 · info@nahu.org