LTC Legislation Slated to Help Millions of Working Americans

(Arlington, VA, May 14, 2003) - The National Association of Health Underwriters (NAHU) applauds Representatives Nancy Johnson (R-CT) and Earl Pomeroy (D-ND) for introducing a bipartisan proposal to make long-term care insurance (LTC) more affordable for all Americans. The Long-Term Care and Retirement Security Act of 2003 would create an "above-the-line" deduction so that individuals could take advantage of the tax break even if they don't itemize their deductions. It would also give a $3,000 tax credit to caregivers and allow long-term care insurance to be offered through a cafeteria plan. This important legislation will help the millions of Americans who are burdened with the huge and often devastating cost of caring for the elderly and disabled.

"The financing of long-term health care is an issue of growing concern," stated Janet Trautwein, NAHU Vice President of Government Affairs. "As the demographic makeup of our country changes, we are faced with the looming crisis of providing long-term health care services, and more importantly, financing those services. Unfortunately, many people underestimate the cost of LTC and do not plan for the future appropriately. The average cost of a year's stay in a nursing home is $40,000 to $80,000.

"Today Medicaid, not Medicare as many presume, is the primary payer of LTC services. However, because there has been no real tax incentive to purchase LTC insurance, a large portion of the financing comes directly out of the pockets of patients or their families. Private LTC insurance currently pays a small percentage of this nation's long-term health care bill.
"As our population ages, state treasuries will simply no longer be able to keep up with providing for such care. In fact, long-term care costs consume about two-thirds of a state's budget and with states running deficits, Medicaid cannot continue to support these outlays. It is critical that we do something now to encourage people to plan privately for their LTC needs, just as they do for their other retirement needs.

"The bipartisan long-term care bill encourages individuals to take personal responsibility for their own needs and those of family members. Encouraging a strong private long-term market will reduce the exposure of state treasuries in the financing of long-term health care services and provide individuals a choice of LTC policies in the private market.

"NAHU looks forward to working with members of Congress and the administration on bringing affordable access to private long-term care insurance for more Americans."

The National Association of Health Underwriters represents more than 17,000 professional health insurance agents and brokers who provide insurance for millions of Americans. NAHU is headquartered in Arlington, VA. For more information, please call Kelly Loussedes at 703-276-3835 or email kloussedes@nahu.org.

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Contacts:
Kelly Loussedes, Director of Public Relations (703) 276-3835; kloussedes@nahu.org
Janet Trautwein, Vice President of Government Affairs (703) 276-3806; jtrautwein@nahu.org

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