Courtney introduces legislation to help long-term care providers, Villager Newspapers

Courtney introduces legislation to help long-term care providers

Bill would help care providers

BY CHENOA PIERCE

VILLAGER STAFF WRITER

July 4, 2008

Thousands of caregivers in the Quiet Corner and across the country will have one less reason to worry if new legislation introduced by Congressman Joe Courtney is passed. On June 11, Courtney held a phone conference to formally announce that he had introduced H.R. 6237, also known as the TLC Act of 2008, that would provide a tax credit to long-term care providers of elderly citizens or children with long-term special care needs. “I think this is a very urgent issue in the country,” Courtney said in a phone interview, noting that the current population is not getting any younger. The legislation would give caregivers a tax break and credit while they are caring for a loved one who needs long-term care. The legislation “provides a tax break for individuals playing long term care premiums and that offers a caregiver tax credit,” according to a press release from Courtney’s office. Currently, the long-term care pro- vided by Medicare is for only a short period of time. According to the Medicare Web site (http://www.medicare.gov), longterm care is defined as “a variety of services that includes medical and non-medical care to people who have chronic illness or disability.” The services provided under that definition “helps meet health or personal needs,” states the site. Once Medicare’s long-term care coverage runs out, those who still need continuous care can apply for Title 19, also known as Medicaid. Title 19 is a government-sponsored healthcare payment plan that pays for the health care needs of a patient after he or she exceeds the allotted payment time of Medicare. There are so many Americans currently on Title 19 that it’s currently costing the country more than education, Courtney said. “[Title 19] is now consuming an even bigger portion” of the budget, according to Courtney.

“The Long-Term Care Initiative provides people with a way to pay for long-term care” without breaking the bank. Courtney also mentioned that the long-term care insurance “helps fill a hole in coverage” for the middle class when it comes to long-term care needs and “reduces the reliance on the Medicaid [Title 19] program, which underpays home health providers by 30 percent.” The issue at hand is one that Courtney said he feels has been ignored.

“I think this is an issue that has been neglected,” he said, adding that he feels that, although the bill may take a while to pass, it is important to get the discussion going now to deal with a problem that will only get worse as time goes on.

Those who will benefit from the Long-Term Care tax credit most will be the middle class of people, according to Courtney. It’s a “promiddle class idea,” he said.

According to the press release, “the tax credit is targeted toward middle class Americans with an adjusted gross income of $150,000 for a joint return and $75,000 for an individual filer.” For every $1,000 a caregiver makes over the $150,000 or $75,000 annually, the credit is reduced by $100.

In 2009, according to the release, the credit will be worth $1,000 and will increase to $3,000 by 2013. The tax credit will provide an incentive for Americans to purchase the long-term care insurance, a service 10 percent of them are eligible for, according to Courtney. “Americans should be looking at long-term care insurance as part of their long-term financial planning,” Courtney stated. “My legislation will provide families a tax break for real savings and allow individuals to save for their futures.”

During his phone interview, Courtney noted that many of the “baby boom” generation and their children do not think about the long-term care insurance because they are trying to pay for college, homes and more. “It’s just not a viable choice for most people,” he said, noting the expenses and adding that he believes his legislation will bring this to the attention of those people and that they will, in turn, purchase the insurance. According to the press release, the bill will “provide for a tax credit for the long-term care insurance premiums” and will provide a tax credit to caregivers providing for the needs of an individual who has long-term care needs — one who has been identified by a physician as needing long-term care for 180 days. The credit may be multiplied if someone is caring for more than one individual with long-term care needs.

One important point is that Courtney has a lot of backing from agencies that provide the services that this bill would help pay for. “This has some pretty strong support from people,” said Courtney. Courtney’s bill has been endorsed by Connecticut Association for Home Care & Hospice, American Health Care Association (AHCA) and Connecticut Association of Health Care Facilities Inc (CAHCF). According to Courtney, the bill has solely been introduced and is currently making the rounds in Washington, seeking co-sponsors and such to get it into action.

Chenoa Pierce may be reached
chenoa@villagernewspapers.com.