Long-Term Care Awareness Week

Floor Speech

LONG-TERM CARE AWARENESS WEEK -- (Extensions of Remarks - November 08, 2007)

SPEECH OF HON. LEE TERRY OF NEBRASKA IN THE HOUSE OF REPRESENTATIVES THURSDAY, NOVEMBER 8, 2007

* Mr. TERRY. Madam Speaker, I rise to recognize November 4-10 as ``Long-Term Care Awareness Week.'' As the baby boomer generation begins to reach retirement age, understanding the realities and benefits of long-term care has never been more important.

* Preparing for future costs of health care is something that every American should be doing. Long-term care insurance is one way for Americans to plan for periods of extended disability without burdening their families, going bankrupt, or relying on government assistance.

* At least 60 percent of people over age 65 will require some long-term care services at some point in their lives--the personal assistance that enables impaired people to perform daily routines such as eating, bathing, and dressing. This care is expensive, averaging almost $200 per day for nursing home care, nearly $80 per day for assisted living and about $20 per day for home care.

* While these costs are astronomical, it is even more stunning how few people realize the true financial impact of requiring long-term care. A 2006 AARP study found that 59 percent of adults who are over 45 overestimate Medicare coverage for long-term care. It is important for people to understand that Medicare does not generally pay for most long-term care services. Therefore, it is important for individuals to start early and plan ahead for long-term care costs as a critical component of their retirement plans.

* Various pieces of legislation have been introduced in Congress to encourage the purchase of long-term care insurance, including my own legislation, The Long-Term Care Act (H.R. 3088), which allows individuals to use funds from their IRAs or 401(k) plans tax-free and without penalty to purchase long-term care insurance. The government does have an important role to play in encouraging higher utilization of long-term care insurance.

* During Long-Term Care Awareness Week, I would encourage all citizens interested in retirement planning to visit www.longtermcare.gov, where the government hosts a national clearinghouse for long-term care information.

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