The Looming Crisis of Long-Term Care
As the baby boomer generation reaches retirement age, the United States is facing a critical challenge: finding affordable long-term care for its aging population. According to Rep. Tom Suozzi, D-New York, “We’re going to have a major storm coming in our country with all these folks that can’t take care of themselves.”
A Personal Experience
Suozzi’s own family experience has driven his passion for addressing this issue. Growing up, all four of his grandparents lived with his family, who took care of them. This experience inspired his parents to purchase long-term care insurance, which allowed them to stay at home until their 90s.
The Unaffordability of Long-Term Care Insurance
However, long-term care insurance is now out of reach for many Americans. Insurance companies initially underestimated the cost of providing care, leading to significant losses. As a result, premiums have skyrocketed, making it difficult for individuals to afford the coverage.
The Limitations of Nursing Homes and Medicaid
Nursing homes and Medicaid are not equipped to handle the growing demand for long-term care. Suozzi believes that a new approach is needed to address this crisis.
The WISH Act: A Proposed Solution
To address the issue, Suozzi plans to reintroduce the Well-Being Insurance for Seniors to be at Home (WISH) Act. This proposal calls for the federal government to create a fund for catastrophic long-term care, allowing older Americans to age at home. The program would be funded through a payroll tax, similar to Social Security and Medicare.
How the WISH Act Would Work
Under the proposal, individuals who have reached retirement age and are disabled, have severe cognitive impairment, or are unable to perform daily living activities would be eligible for benefits. The amount of benefits received would be around $3,600 to $4,000 per month, based on the median cost of personal assistance for six hours per day. Waiting periods for care would be based on income, with longer delays for higher-income individuals.
The Challenges Ahead
While the WISH Act offers a potential solution, it faces significant hurdles. Raising taxes to fund the program will be a tough sell, especially since not everyone will need long-term care benefits. However, experts agree that something must be done to address the looming crisis.
State-Led Initiatives
In the absence of federal action, states are taking the lead. Washington state has already implemented a public long-term care insurance program, funded by a 0.58% tax on employee wages. Other states, including California, New York, Massachusetts, Pennsylvania, and Minnesota, are exploring similar initiatives.
A Collaborative Approach
Ultimately, addressing the long-term care crisis will require a collaborative effort from government, private industry, employers, and family caregivers. As Ben Veghte, director of the WA Cares Fund, noted, “It’s going to take all of us to address the costs associated with long-term care and the crisis ahead of us.”
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