Mr. Speaker, I appreciate the fact that Mr. Gingrey is holding these to help inform people of exactly what Congress is doing on the issue of health care. I am sure when every Member here goes back into their district, people ask them about…
Mr. Speaker, I appreciate the fact that Mr. Gingrey is holding these to help inform people of exactly what Congress is doing on the issue of health care. I am sure when every Member here goes back into their district, people ask them about health care.
In my district, of course, the issue is always not only just health care for seniors, but also veterans. And Dr. Murphy was absolutely correct that the VA was the first entity to begin computerizing their records, which is the reason why a veteran can go from New York at a VA facility down to one in Florida, and virtually with a few key strokes, they pull up his or her record. That is a good way to make sure that we have continuity of care.
In Florida, of course, we have many, many nursing homes. People move to Florida, and as they age in Florida, the nursing home industry is a very, very vital part of our economy. When I was a State senator, I worked long and hard on nursing home issues. We did nursing home reform.
And one of the reasons that we did nursing home reform was because we wanted to increase the staffing and make sure that nursing homes provided the kind of quality care that we all want for our seniors who are in nursing homes. But, you know, one of the issues clearly is the cost not just for those living in a nursing home, but also for younger families who have got to care for older parents or loved ones, very often termed the sandwich generation.
You know, long-term care costs can be very, very stifling. And I agree about having them be able to roll into a medical savings account. It is certainly a very important component of what we are trying to do long term.
You know, you do not fix health care forever. The need for health care reform continues as technology improves, as we all age, and also as we take into consideration all of the new pharmaceutical products that are out there that prevent people from going into hospitals, and, many times, nursing homes.
You know, that sandwich generation I was just speaking about, they are the ones who are very often helping to care for their parents. You know, nursing home costs can be upwards of $60,000 if a person does not have insurance. And home health care costs can sometimes reach $20,000 a year.
When we look at the demographics, those who are 85 years of age or older are the most likely candidates for long-term care service. But age is not the only indicator. Actually people of any age with limited self-care or mobility issues are candidates as well.
For the average person over age 50, home health care can cost over $5,800 a year. Even families who have long-term care insurance are facing hefty costs. Kind of base plan premiums run between $564 a year for a 50-year-old, for example, to $5,300 a year for someone who is 79.
When families can no longer cover these costs, Medicaid has to pick up the tab for those who do not have long-term care insurance. And when we look at the spending in Medicaid, one-third
nationwide of all Medicaid spending goes toward long-term care.
Moreover, two-thirds of these funds are used for institutional care, even though consumers prefer to remain in their own homes and communities. I am sure, Dr. Gingrey, that in your State as well as in my State, that they have applied for waivers, kind of all efforts possible to keep people in their own homes.
People prefer to be in their own homes, but there are times when they do need to be in long-term care. One of the bills that I recently introduced that I know many of my colleagues are on, is the Qualified Long-Term Care Fairness Act. We want to encourage people to participate in long-term care insurance.
This bill provides the same tax deduction available to those who itemize as those who do not. Currently only people who itemize on their income tax can take off the cost of long-term care insurance. This was obviously overlooked when they passed the bill, in that they only allow people who itemize.
We want to make sure that this tax deduction may be used for long- term care insurance premiums, activities of daily living, diagnostic, preventative or rehabilitation services, and certainly other services prescribed by a licensed health care practitioner.
My bill also, by the way, covers home health care expenses. By taking out a policy, it really and truly helps the family so very much. We want to make sure that this additional tax deduction can be claimed by people who take that extra care to be sure that if they need nursing home care that they have the insurance to cover it.
You know, Mr. Speaker, in 2001, spending for long-term care services for persons of all ages represented 12.2 percent of all personal health care spending. This was almost $152 billion of $1.24 trillion spent for health care.
Congress should encourage all Americans to purchase long-term care insurance. And certainly this is but one way that we can encourage our constituents to spend that money for a long-term care policy.
If I may take a moment just of personal privilege to tell a story about a very dear gentleman that everyone thought he was my dad; he was not. He had three daughters and he cared about those daughters.
Because he lived in the same community that I did, and because we were very close, people just thought that Arne was my father. Well, let me tell you, Arne was a very, very thoughtful father, because he took out long-term care insurance.
He developed Alzheimer's, and needed to be in a long-term care facility. His wife had passed on and the progression was very, very fast. Arne passed away last year, but I can just tell the Members in the Chamber tonight and those who may be watching in the audience, that Arne's children truly appreciated the fact that he took out that long- term care insurance. Because that way, the insurance paid for all of the time that he had to spend in the nursing home. And he was able to preserve his life's savings to leave to his children, which is really what he wanted. And he also wanted to make sure that he was not a burden on the taxpayers.
I would ask as many people as possible to consider that kind of insurance to make sure that they are cared for and that their children or whoever they want to leave the rest of their savings to, that they are also provided for. I think it is an excellent way to do it.
Mr. Speaker, I commend the gentleman. And certainly the use of any funds from a health savings account for this purpose accomplishes the same thing. It gives people a tax incentive to save, to also save and preserve their assets for the future.
And, you know, I recently, this past weekend, ran into a young man who was all of 55 years old. He was injured, and spent some time in a rehab center. And, you know, he said to himself, you know, he did not have insurance. When he told me the cost of that rehabilitation, it was astronomical.
So, you know, we all want to believe that we are going to be as healthy tomorrow as we are today. But, that is not always the case. And I remember when I reviewed the policy with Arne, because I was a little skeptical, he was 75 when he first started looking at it, and I was amazed what it did cover and how reasonable the cost was. And, you know, I looked on every line, looking for a loophole. And it ended up being something that I did recommend to him, never realizing that a few years later he would need to have this.
So I commend the gentleman for promoting the health savings accounts and any other way that we can help seniors to better prepare for their future.