Government and Industry Team Up on LTCI
Thursday September 28, 2000
Earlier this month, the U.S. Senate Special Committee on Aging discussed "Long-Term Care Insurance: Protecting Consumers from Hidden Rate Hikes." At the Senate Committee web site (www.senate.gov/~aging), you can find transcripts of testimony given by both government and industry representatives.
Committee Chairman Sen. Chuck Grassley opened the hearing saying, "[a]s a strong proponent of long- term care insurance, I can say that it's critical for Americans to become aware of and familiar with this product."
Both government agencies and industry trade organizations are interested in seeing consumer confidence in LTCI grow. According to Sen. Grassley, "A federal tax break would stimulate long-term care insurance sales. It also would indicate to consumers that such policies are safe and government-endorsed."
As usual, however, government support and funding invites increased oversight. Sen. Grassley continued: "Therefore, I plan to amend my bill, S. 2225, the Long- Term Care and Retirement Security Act of 2000, to include a consumer protection provision. The amended bill will require that long-term care insurance plans billed as federally qualified include a provision that protects consumers of these policies from unexpected and extreme rate hikes." Sen. Grassley hopes to amend and pass his bill this year. [Yesterday, Reps. Nancy Johnson (R-CT) and Earl Pomeroy (D-ND) called on Congress to take action on passing the enhanced tax deductions for LTCI currently before Congress in a variety of proposals. Source: LTC E-Alert Newsletter, 9/28/00]
To our readers: Stay informed, aware of, and involved in the legislative process that will improve long-term care financing for the future.