The Senate has voted to keep a new federal entitlement program providing long-term care insurance in its health overhaul bill.
Republicans fell short in a bid to strike the voluntary insurance plan on a 51-to-47 vote. Sixty votes were needed to prevail.
The plan that was a priority for the late Sen. Edward M. Kennedy is designed to help seniors and disabled people stay in their own homes and avoid going into nursing homes.
According to Jesse Slome, executive director of the American Association for Long-Term Care Insurance, details regarding the cost and actual benefits of the plan have yet to be outlined. "If the federal government prices the insurance at the level needed to make the program viable, few if any will sign-up," Slome explains. Some have estimated premium costs could be as much as $2,000 a year per-individual. "They'll underprice the coverage to attract participation and worry about the shortfall down the road."
The plan intends for employed workers to have monthly premiums deducted from paychecks during the course of their careers. "If you become disabled, you'll be eligible for a cash benefit of up to $50 a day," Slome notes. "That isn't enough to cover the real cost of long-term care but it's better than nothing." The benefits will be designed to pay for a home care attendant, for supplies and equipment, to make home improvements such as new bathroom railings or defray nursing home costs.
Under the plan, no claims will be paid for five years following the inception of the plan. A number of financial consultants have warned the program will create a costly, underfunded federal entitlement that will ultimately be borne by taxpayers in future years.
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