State & Federal Government Must Head off Funding Disaster for Future Long-term Care Needs
Federal and state government incentives and public awareness programs are required to head off a funding disaster for future long-term care needs, a leading expert on long-term care insurance told a crowd in St. Louis.
(PRWEB) June 8, 2005 -- Federal and state government incentives and public
awareness programs are required to head off a funding disaster for future
long-term care needs, a leading expert on long-term care insurance told a crowd
in St. Louis.
Matt McCann, an Illinois based long-term care planning
expert, was a featured speaker at the Ninth International Conference on
Post-Polio Health and Ventilator-Assisted Living in St. Louis. He told the crowd
that the growing need for Americans needing long-term care services will place a
huge burden on the budget's of American families and that of state and federal
government when many of those people end up on Medicaid, the medical welfare
program, after spending down assets.
The rising cost of long-term health
care and US demographics could cripple the US financially unless something is
not done soon. Projections by the New England Journal of Medicine say that 43
percent of all Americans will spend some time in a nursing home; 55 percent will
stay at least a year; and 21 percent will stay at least five
years.
McCann told conference attendees in St. Louis that he applauds
recent federal legislation which would allow an above the line tax deduction for
long-term care insurance.
The Long-Term Care & Retirement Security
Act of 2005, H.R. 2682 would provide federal tax incentives for Americans who
purchase long-term care insurance. The bill, sponsored by Representatives Nancy
Johnson (R-CT) and Earl Pomeroy (D-ND), along with eight other House members.
The bill will also tax credit for caregivers; and a provision that would allow
long-term care insurance to be paid through employer-sponsored cafeteria plans
and flexible spending accounts which use pre-tax dollars.
"I applaud
Representatives Johnson and Pomeroy for again being leaders and leading the way
as we find ways to protect Americans from one of the biggest financial risks any
of us will face during our lifetime," said McCann.
McCann urged attendees
to write or call their area Member of Congress to support this common sense
legislation.
"This legislation is designed to address a major flaw in the
nation's healthcare financing system and is important because it would make
long-term care insurance more affordable to more American families. Anything we
can do to encourage people to plan for long-term care with very affordable
long-term care insurance is good public policy, "said McCann.
Many states
provide tax incentives to encourage the purchase of long-term care insurance.
Many others are now considering tax incentives. McCann said the Illinois State
Senate passed SB1707 which would create a state income tax credit. Other states
are also looking at tax incentives as well.
Private long-term care
insurance has become a product attracting the attention of those between 40 and
65 years of age since the cost is very reasonable at those ages and a person's
health usually is much better. Health is important in order to obtain
coverage.
McCann says a well designed long-term care insurance plan is
very affordable and can protect the family from future long-term care health
costs which are not paid by health insurance or Medicare.
McCann also
noted the Long-Term Care Consumer Awareness Campaign Project, jointly funded by
the Centers for Medicare and Medicaid Services and the US Department of Health
and Human Services, should be spread to all the states. Five states have taken
part so far, Arkansas, Idaho, Nevada, New Jersey and Virginia.
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Source : http://www.prweb.com/releases/2005/6/prweb248561.htm