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Senate Aging Chair Wants Tax Incentives for
Long-Term Care Savings
March 15, 2006 At a hearing last week on the
preparedness of Americans for long-term care financing, held by the
Senate's Special Committee on Aging, Chairman Gordon H. Smith (R-Oregon)
pledged to introduce legislation offering tax incentives for those who
invest in long-term care savings.
The hearing focused on the rising cost of care and
how Americans can best plan for their future long-term health care
needs.
Smith said his Long-Term Care Trust Account Act
will provide a tax credit for individuals who open accounts for the
purpose of saving for long-term care. Interest on the accounts will
accrue tax-free, and accounts may be used to purchase long-term care
insurance or pay for care. Individuals will also be able open accounts
for family members and loved ones.
Our declining savings rate means fewer Americans
will be prepared to meet the challenges of financing long term care on
their own, Smith said. The best way to plan for it is to be insured.
My legislation will create incentives for people to make their futures
more secure while reducing dependence on federal entitlement programs.
In 2002, national spending on long-term care
totaled nearly $160 billion, representing 12% of all health
expenditures. As the Baby Boomers begin retiring in greater numbers, the
demand for long-term care will increase significantly.
According to the Centers for Medicare and Medicaid
Services, nearly two-thirds of the people receiving long-term care are
over age 65, with the number of retirees needing care expected to double
by 2030.
As our nations population ages, our ability to
pay for programs such as Medicare and Medicaid will be stretched to the
limit, said Smith. We must begin to educate the public about the
importance of planning for long-term care to ensure future generations
of retiring Americans are able to meet their health care needs.
Below are speakers at the March 9 hear, with links
to their presentations.
A Webcast of the meeting is also available:
Click here to view hearing
Member Statements
● Senator Gordon Smith (Click
here to view statement - PDF)
● Robert F. Danbeck (Click
here to view statement - PDF) , Associate Director & Chief Human
Capital Officer, Office of Personnel Management (OPM), Washington, DC
● Eileen Tell (Click
here to view statement - PDF) , Senior Vice President, Long Term
Care Group Inc, Natick, MA
● Malcolm Cheung (Click
here to view statement - PDF) , Vice President, Long-Term Care
Prudential Financial, Livingston, NJ
● Joanne Vidinsky (Click
here to view statement - PDF) , Insurance Purchaser, San Francisco,
CA
● Ph.D Robert B. Friedland (Click
here to view statement - PDF) , Founding Director, on an Aging
Society, Washington, D.C.
Helpful Link
Real.com
Download your free real player by clicking on the link to the left to
view the Hearing.
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