Senators Mikulski and Klobuchar Introduce Americans Giving Care to Elders (AGE) Act

Press Release

U.S. Senators Barbara Mikulski (D-Md.) and Amy Klobuchar (D-Mn.) today introduced federal legislation to assist families who care for aging family members and to ensure the integrity of long-term care insurance policies. The legislation is designed as a starting point to relieve the financial and other burdens faced by family caregivers.

"When I came to Congress, I vowed to do everything I could not just to support research - the search for a cure or a cognitive stretch out - but also to create a safety net for families. We know the family is always the first caregiver," said Senator Mikulski. "I am so proud to stand with Senator Klobuchar to take another modest step towards giving caregivers the resources and assistance they need."

"Seniors want to be able to live independently and stay in their own homes as long as possible, and family support is essential to making that option available," said Klobuchar. "Millions of families already find themselves as members of the ‘Sandwich Generation,' coping with the challenges and costs of care for elderly parents at the same time as they are caring for their own children. As the baby boom generation ages, the numbers will continue to grow. Just as the country addressed the needs of working moms and dads in the 1970s, we must now address the needs of our working daughters and sons."

In the coming years, the United States will experience the dramatic effects of an "age wave" as the Baby Boom generation retires and a growing number of people live into their 80s and beyond. According to the Third Way, the fastest growing segment of our population are Americans age 80 and over; while more than 44 percent of adults aged 45-55 had aging parents or in-laws as well as children under the age of 21. Adult children are the most common providers of informal care, and many also provide direct financial assistance to their parents.1

The result is a ‘Sandwich Generation' of Americans caring both for children and for aging parents, and incurring the related costs.

The two bills introduced today - the AGE (Americans Giving care to Elders) Act and the Long Term Care Insurance Integrity Act - seek to relieve the burden on the Sandwich Generation:

- Enhance support for family caregivers by establishing the National Caregiving Resource Center as a central clearinghouse where families, public agencies and private organizations can learn about best practices and promising innovations to support families in their caregiving roles. The legislation will also strengthen the National Family Caregiver Support Program which helps fund direct services to family caregivers.

- Provide financial relief to family caregivers by creating a tax credit for elder care costs. Families will be able to qualify for up to $1,200 each year to offset a wide range of costs in caring for an aging or ailing relative. The tax credit will begin to phase out for families making over $120,000 per year and will be eliminated for families making over $200,000.

- Protect consumers with long term care insurance by establishing a third party review board to address one of the most common complaints about these policies: the denial of appropriate and timely benefits by insurance companies. Currently, those who are denied benefits must seek recourse through the court system, which is expensive and time-consuming at a time when people are most vulnerable and in need. While some 8 million Americans have already purchased long-term care insurance policies, there have been growing complaints about the refusal of insurance companies to pay out appropriate and timely benefits.

The legislation has been endorsed by the Family Caregiver Alliance, National Alliance for Caregiving, National Association of Area Agencies on Aging, National Rural Health Association, Senior Citizens League, and Third Way.

"We know how hard caregivers work and the strain they feel. I will keep fighting for legislation to make a difference in the lives of millions of Americans caring for an aging loved one," said Senator Mikulski. "I believe we must approach chronic diseases like Alzheimer's with the urgency it needs, but while we search we must help the caregivers who are giving so much of themselves."

"This approach is good for our seniors, for our families, for our businesses and employers, and for all of us as taxpayers," said Klobuchar.

Senator Mikulski, Chairman of the Retirement and Aging Subcommittee of the Health, Education, Labor and Pensions (HELP) Committee, was one of the key authors of the Older American Act Amendments of 2006 and has been a tireless advocate for aging in place and caregiver initiatives.

Senator Klobuchar chaired a Congressional Joint Economic Committee hearing in May about the impact of elder care responsibilities on families and employers. She has also held several roundtable discussions in Minnesota with family caregivers.

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