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Stronger Tax Deduction Coming?

Posted by Scott A. Olson, CLTC on March 02, 19101 at 12:33:11:

FOR IMMEDIATE RELEASE
CONTACT: Joseph Luchok
March 2, 2001
(202) 824-1786
e-mail: jluchok@hiaa.org

WASHINGTON, D.C. - Legislation introduced yesterday evening by Rep. Nancy
Johnson (R-CT) would help millions of Americans plan or pay for nursing
home, home health care, assisted living, or other long-term care costs,
according to Chip Kahn, President of the Health Insurance Association of
America (HIAA).

According to Mr. Kahn, Rep. Johnson's legislation - "The Long-Term Care and
Retirement Security Act of 2001" (HR 831) - would provide needed tax relief
for people purchasing private long-term care insurance. It also would
provide a tax credit for families with current long-term care needs.

"Long-term care remains the largest unfunded liability facing baby boomers
approaching retirement -- and their parents," remarked Mr. Kahn. "Rep.
Johnson's legislation offers Americans real protection against the
often-catastrophic cost of long-term care. It also would allow them to
choose where to get the care that they need."

According to "Aging in the United States" -- published by the Bureau of the
Census -- in 2020, one of six Americans will be 65 or older - 20 million
more seniors than today. Individuals 85 and older, currently numbering 3.5
million, will double to 7 million by 2020 and double again to 14 million by
2040. The Census Bureau report states that persons aged
85 and older are more likely to need nursing home care than any other age
group. While only 1 percent of persons aged 65 to 74 and 6 percent of
persons aged 74 to 85 lived in a nursing home in 1990, 24 percent of persons
aged 85 or more lived in a nursing home in 1990.

Recent estimates indicate that the cost of a year's stay in a nursing home
averages nearly $50,000, and in many major cities the cost is significantly
higher.

Respondents to a recent survey sponsored by HIAA indicated that providing
tax relief would be the most important step that government could take to
encourage them to plan for future long-term care needs. Additional HIAA
research shows that providing tax relief to people purchasing private
long-term care insurance would pay for itself over time by reducing Medicaid
spending.

The Health Insurance Association of America (HIAA) is the nation's most
prominent trade association representing the private health care system.
Its nearly 300 members provide health, long-term care, dental, disability,
and supplemental coverage to more than 123 million Americans. It is the
nation's premier provider of self-study courses on health insurance and
managed care.

###

PLEASE NOTE: The finding about the benefits of tax relief to purchasers of
long-term care insurance is contained in "Buyers and Non-Buyers of Long-Term
Care Insurance: A Decade of Experience", available at
http://www.hiaa.org/news/news-state/001012mediakit.htm. HIAA's study about
Medicaid savings achieved through tax relief is available at the following
address: http://www.hiaa.org/news/news-state/taxdeductibility.htm.

Follow Ups:

Re: Stronger Tax Deduction Coming? : FOR IMMEDIATE RELEASE : CONTACT: Joseph Luchok : March 2, 2001 : (202) 824-1786 : e-mail: jluchok@hiaa.org : WASHINGTON, D.C. - Legislation introduced yesterday evening by Rep. Nancy : Johnson (R-CT) would help millions of Americans plan or pay for nursing : home, home health care, assisted living, or other long-term care costs, : according to Chip Kahn, President of the Health Insurance Association of : America (HIAA). : According to Mr. Kahn, Rep. Johnson's legislation - "The Long-Term Care and : Retirement Security Act of 2001" (HR 831) - would provide needed tax relief : for people purchasing private long-term care insurance. It also would : provide a tax credit for families with current long-term care needs. : "Long-term care remains the largest unfunded liability facing baby boomers : approaching retirement -- and their parents," remarked Mr. Kahn. "Rep. : Johnson's legislation offers Americans real protection against the : often-catastrophic cost of long-term care. It also would allow them to : choose where to get the care that they need." : According to "Aging in the United States" -- published by the Bureau of the : Census -- in 2020, one of six Americans will be 65 or older - 20 million : more seniors than today. Individuals 85 and older, currently numbering 3.5 : million, will double to 7 million by 2020 and double again to 14 million by : 2040. The Census Bureau report states that persons aged : 85 and older are more likely to need nursing home care than any other age : group. While only 1 percent of persons aged 65 to 74 and 6 percent of : persons aged 74 to 85 lived in a nursing home in 1990, 24 percent of persons : aged 85 or more lived in a nursing home in 1990. : Recent estimates indicate that the cost of a year's stay in a nursing home : averages nearly $50,000, and in many major cities the cost is significantly : higher. : Respondents to a recent survey sponsored by HIAA indicated that providing : tax relief would be the most important step that government could take to : encourage them to plan for future long-term care needs. Additional HIAA : research shows that providing tax relief to people purchasing private : long-term care insurance would pay for itself over time by reducing Medicaid : spending. : The Health Insurance Association of America (HIAA) is the nation's most : prominent trade association representing the private health care system. : Its nearly 300 members provide health, long-term care, dental, disability, : and supplemental coverage to more than 123 million Americans. It is the : nation's premier provider of self-study courses on health insurance and : managed care. : ### : PLEASE NOTE: The finding about the benefits of tax relief to purchasers of : long-term care insurance is contained in "Buyers and Non-Buyers of Long-Term : Care Insurance: A Decade of Experience", available at : http://www.hiaa.org/news/news-state/001012mediakit.htm. HIAA's study about : Medicaid savings achieved through tax relief is available at the following : address: http://www.hiaa.org/news/news-state/taxdeductibility.htm.

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