Senator Edward Kennedy’s contribution to affordable Long Term Insurance

The Community Living Assistance Services and Support Act 2009 was introduced by Senator Kennedy (S. 697) and Congressman Jack Pallone (H.R. 1721). According to the fact sheet put out by the Alliance for Retired Americans, Medicare covers very little of the long term services needed and one must have less than $2000 in savings to qualify for Medicaid. Hence, people are forced into institutions and poverty if they require long term medical services. Furthermore, over 40% of people will need over 2 years of long term services and support. Think about what this is costing taxpayers and caregivers who must help cover these costs if they want their family member to get quality care. The bill would create a National Insurance Program supported through voluntary payroll deductions of anyone working 18 years of age and older. This large pool of people in the program will decrease the cost of Long Term Services and Support.

The lack of Long Term Health Insurance is not only a drain on the finances of the person directly affected but also family and friends that chip in to make sure their loved one is properly cared for. We all need to not only have access to affordable health care, we should have access to affordable Long Term Health Care. Contact your legislative representative and make sure that you let him/her know that you want the Class Act to pass.

Long Term Health Care premium tax credit with Caregiver Credit

The Connecticut Rep. Joe Courtney has introduced a bill H.R. 6237 that would provide a federal tax credit for Long Term Health Care insurance premiums and a caregiver tax credit under certain circumstances. You can see the rest of the article on Courant.com (June 14). The entire bill can be found on the Library of Congress Thomas. It is in the very early stages of being considered in Congress. People should contact their representatives and let them know how they would feel about such a bill. There is a need for tax credits for Long Term Health Care premiums and relief for family caregivers. What do you think about such a bill?

Long Term Health Care

This is a portion of a good article on long term health care (LTHC) on Forbes.com (May 22,2008) under investments.

Long-term-care insurance may not be right for every situation. It may not be the answer for people who can rely on family members to provide care for them at home, says Michael Haubrich, a fee-only certified financial planner in Racine, Wis.

“Most of my clients have family members who are willing and able to assist in keeping them out of institutional care,” Haubrich explains. “In those cases, the most valuable asset is cash, not insurance. Having that cash will allow the family to be unconstrained by policy limitations that exclude payments to family members and unlicensed service providers.”

The flipside of this argument is that having long-term-care insurance alleviates the pressure on a spouse or family member to be the primary caregiver, says Don R. Campfield, the national sales director of Guardian’s long-term-care division. “This shifts the emotional burden,” he adds.

This is an interesting argument. My parents bought long term health care (LTHC) years ago because they did not want to be a burden. However, when they bought it people were not living as long. I have continually asked them to review the policy but they are convinced that it will meet their needs. Any of you who have looked into such policies know that they are expensive and they do not cover the length of time that many people spend with different illnesses and conditions. In an article in February, Forbes.com discussed some of the options for LTHC. I would love to hear your perspective on what policies and companies seemed best for your purposes.

Family caregiver legislation is introduced

Today Senators Mikulski and Klobuchar introduced federal legislation called the AGE (Americans Giving care to Elders) Act and the Long Term Care Insurance Integrity Act . Check out the media release and Senator Mikulski’s web page. This looks like a good beginning because it monitors long term health care practices and offers a tax credit for elderl care. Any of you that have researched such policies know that it is very difficult to determine what is best for you because as health care prices and longevity increases there are so many variables to consider. Make sure your Congress people know that you are interested in legislation dealing with issues related to caregiver needs and long term health care oversight.