Q: How do you propose to mobilize more Americans to prepare for their long-term care needs?
A: Unless you have faced a family situation where a loved one requires hands-on care around-the-clock, it’s more than likely you have not given long-term care a second thought. And if you’re under age 30 or married with young children, chances are pretty good that planning for assisted living and nursing home facilities or home health care aren’t registering on your radar screen. And if they do, they probably don’t fit into your budget plans. And yet, our American society is aging. And planning for the unexpected can alleviate a lot of financial stress and emotional wear and tear should the need for long-term care arise. Washington ought to do its part to raise public awareness and pave the way for more affordable options for long-term care. As America gets older, the challenges facing the nation’s health delivery systems, workforce, entitlement programs, aging networks and family units will increase exponentially. Already today, an estimated 22 million Americans provide care to a loved one, who otherwise may require expensive, institutional assistance to meet basic hygiene and health care needs. Long-term care is expensive in any form. And most Americans will have trouble affording it. Many people don’t realize that government programs do not automatically cover nursing home or home health care, unless the patient starts out or becomes impoverished. The private-sector can fill a widening gap here and offer plans that prepare people before need exists. Planning ahead while you’re still in the workforce means lower premium costs and also brings the peace of mind that comes with thinking ahead. What’s more, a number of private-sector employers has added new employee benefits to help their workers cope with elder care needs. In March, I introduced a bipartisan bill called the "Long-term Care and Retirement Security Act" to use the tax code as a vehicle to get more people motivated about preparing for long-term care.
Q: Can you explain how your bipartisan bill would help family caregivers currently "on the job?"
A: Millions of family caregivers face steep out-of-pocket expenses when they take on this role. Many quit their jobs or take unpaid leave to provide elder care for an aging parent. Society owes these silent heroes, who work tirelessly to keep an ailing loved one at home for as long as possible, a debt of gratitude. My bill would give individuals or their caregivers a $3,000 tax credit to help defray the costs associated with long-term care expenses. Those who are eligible for the annual credit must have been certified by a doctor to require assistance with at least three activities of daily life, including eating, bathing and dressing.
My bill also seeks to make long-term care insurance more affordable and attractive to those still in the workforce. It would allow individuals who purchase private long-term care insurance to deduct the cost of the premiums. Increasingly, Americans are interested in private long-term care insurance to pay for nursing home stays, assisted living, home health aides and other services. However, most people find the policies unaffordable. The younger the person, the lower the insurance premium, yet most people aren't ready to buy a policy until retirement. A deduction would encourage more people to buy long-term care insurance earlier.