Senators hear term care insurance information

Los Angeles; December 19, 2013 –  The U.S. Senate Special Committee on Aging held hearings yesterday in an effort to explore viable ways to help families pay for long term care insurance protection.

According to the Senate report, some 12 million Americans currently require long-term-care services.  The U.S. Commission on Long-Term Care expects that number will nearly double by 2050.

“In our current system, most people receive care from family and friends,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance, a national trade group.  “Many depend on costly in-home care, or end up in assisted living facilities or nursing homes, an expense many middle-class families can’t afford.”

Slome noted that the Senate panel was set to hear from a panel of experts, including three members of the commission.  “The commission issued their report with 28 recommendations,” Slome notes.  “But basically, they don’t really have a way to address the problem in a politically charged environment.”

According to reports, Anne Tumlinson, senior vice president at Avalere Health proposed to the Committee an individual mandate to buy long-term care insurance as a prerequisite for meaningful long term care financing reform.   Tumlinson said she reluctantly embraced this idea after long and careful study of the issue, and noted it would likely be “the least popular point” advanced at the hearing.

“We don’t see a mandate as having any possibility in this politically charged environment.  In the end it’s up to individuals and families to act,” Slome advises.  “People really have three options when a need for long term care arises.  Turn loved ones and family members into caregivers, turn to whatever government programs exist at the time or have the funds to pay, which can include some long term care insurance.”

According to the organization, some eight million Americans currently possess a form of private long term care insurance protection.  “Long term care insurance is not a universal product for everyone,” Slome adds.  “But for a distinct segment of the population who can health qualify and have retirement savings they want to protect, it’s a very viable option.”

Consumers interested in long term care insurance costs and information can call the organization at (818) 597-3227 or visit their website www.aaltci.org where one can request information from a designated long term care insurance specialist.

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To read the Commission on Long Term Care Commission  report click this link or go to http://www.aaltci.org/wpdownloads/commissionltc.pdf .

The Commission was established under Section 643 of American Taxpayer Relief Act of 2012 (P.L. 112-240), signed into law January 2, 2013.   Fifteen members each were appointed by the President of the United States, the majority leader of the Senate, the minority leader of the Senate, the Speaker of the House of Representatives, and the minority leader of the House of Representatives.

According to the 92 page report released today, the statute directed the Commission to: “…develop a plan for the establishment, implementation, and financing of a comprehensive, coordinated, and high-quality system that ensures the availability of long-term services and supports for individuals in need of such services and supports, including elderly individuals, individuals with substantial cognitive or functional limitations, other individuals who require assistance to perform activities of daily living, and individuals desiring to plan for future long-term care needs.”

“The report provides a very detailed and comprehensive overview of the long-term care servicing and financing issues facing Americans,” says Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “With little time and in today’s politically charged environment, it was unlikely the Commission would achieve anything more.”

Slome noted that those anticipating significant changes or a recommendation for a new taxpayer-supported social insurance program to address long-term care may be disappointed.   “The bipartisan support for approval of the report is evidence that there is clearly no groundswell for another attempt at a government option along the lines of the CLASS Act,” Slome added.  Five Republicans and four Democrats voted in favor of the final report that failed to recommend a new national insurance program for long-term care services.

“The Commission recommended creation of an Advisory Committee,” Slome shared.  “We look to be part of the ongoing dialogue about furthering a public / private solution.,” Slome notes.  “There is no universal solution.  Both public entities and private insurers have a role to play and that is positive news for the long term care insurance industry.”

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The report’s conclusion:  “As currently designed, CLASS will not be able to sustain itself without subsidies from taxpayers or from all workers in the form of mandatory enrollment. ”

The conclusion continues, “In addition to being unsound, the program is unnecessary.  Americans already have an array of private long-term care insurance options to choose from; many are more economical than CLASS, most offer richer benefits.”

The report concludes that “The best remedy for the unsustainable, unaffordable CLASS program is to repeal it.”

“This is the first time I have heard a politician utter the word ‘repeal’ when referring to the CLASS Act,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “I actually wish they would finalize the pricing and benefits for the CLASS plan as soon as possible becuase I believe consumers are confused.   They need to know what this will cost as soon as possible so they can make intelligent comparisons.”

If you would like a PDF of the Senate report, please contact AALTCI.

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