Statements on Introduced Bills and Joint Resolutions

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

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Mr. GRASSLEY (for himself and Mrs. LINCOLN):

S. 1244. A bill to amend the Internal Revenue Code of 1986 to allow individuals a deduction for qualified long-term care insurance premiums, use of such insurance under cafeteria plans and flexible spending arrangements, and a credit for individuals with long-term needs; to the Committee on Finance.

Mr. GRASSLEY, Mr. President, I rise today to introduce the Long-Term Care and Retirement Security Act. I am pleased to be sponsoring this bill with my distinguished colleague from Arkansas, Senator BLANCHE LINCOLN.

Our bill would ease the tremendous cost of long-term care for Americans everywhere. First, it would allow individuals a tax deduction for the cost of long-term care insurance premiums. Increasingly, Americans are interested in private long-term care insurance to pay for nursing home stays, assisted living, home health aides, and other services. However, most people find the policies unaffordable. The younger the person is at the time the longcare insurance contract is purchased, the lower the insurance premium. Yet most people are not ready to buy a policy until retirement. A deduction for long-term care insurance premiums would encourage more people to buy a long-term care insurance policy.

Our proposal would also give individuals or their care gives a $3,000 tax credit to help cover their long-term care expenses. This would apply to those who have been certified by a doctor as needing help with at least three activities of daily living, such as eating, bathing or dressing. This credit--would help care givers pay for medical supplies, nursing care and any other expenses incurred while caring for family members with disabilities.

This year, I have been pleased to see our Nation turn its attention to the need to address the challenges of our aging population. The President has used the power of the Presidency to jumpstart a national discussion of the need to reform Social Security. Attention also has been focused on the need to increase our abysmally low savings rate and to ensure that workers' pensions are fully funded. At the same time, I have been glad to see attention also focused on helping Americans' prepare for future long-term care expenses. Enactment of the bill we are introducing today would mark a giant step forward in doing just that.

An aging Nation has no time to waste in preparing for long-term care, and the need to help people afford long-term care is more pressing than ever. I look forward to working with Senator LINCOLN and our colleagues in the Senate to get our bill passed into law as soon as possible.

Mr. President, I ask unanimous consent that the text of the bill be printed in the RECORD.

There being no objection, the text of the bill was ordered to be printed in the RECORD, as follows:

S. 1244

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