Grassley, Graham Reintroduce Bill Giving Tax Credit, Deduction for Long Term Care

Sens. Charles Grassley (R-Iowa) and Bob Graham (D-Fla.) introduced a bill (S. 627) March 27 that would provide tax credits and deductions to help people buy long term care insurance or compensate for providing long term care to a family member, the Florida Times-Union reports. Grassley and Graham introduced a similar measure last year, but this year, with Grassley as head of the Senate Finance Committee, the bill has a better chance to pass, the Times-Union reports. Grassley said, "With millions of baby boomers set to retire in the future, it is crucial to find a way to better meet their long term care needs" (Friedland, Florida Times-Union, 3/28). Under the bill, people would be allowed to deduct up to $2,500 in annual long term care insurance premiums from their taxes. In addition, people who care for family members in their homes could take a tax credit of up to $3,000 (MacDonald, Hartford Courant, 3/28). About nine million people receive long term care, at a cost of $134 billion; more than half of that cost is paid by Medicaid and Medicare (Florida Times-Union, 3/28). The high cost of long term care insurance -- about $1,677 per person per year -- is one reason that fewer than 10% of the elderly and near-elderly have purchased it, according to William Scanlon, director of health care issues for the General Accounting Office (Hartford Courant, 3/28). According to a Grassley release, the AARP and the Health Insurance Association of America support the bill (Grassley release, 3/27). For an audio file of Grassley speaking at the press conference to release the bill, please visit http://www.senate.gov/~src/radio/grassley/longtermcare3-27.mp3.