As a historic wave of baby boomers reaches retirement age, finding affordable long-term care is a growing challenge. Representative Tom Suozzi, D-New York, emphasized the issue at a recent policy forum in Washington, D.C.
Suozzi’s parents purchased long-term care insurance after his grandparents lived with his family, allowing them to stay at home in their 90s. However, many Americans cannot afford this type of insurance due to the policy’s actuarial tables underestimating people’s longevity.
To address the issue, Suozzi plans to reintroduce the Well-Being Insurance for Seniors to be at Home, or WISH, Act. The proposal would create a fund for catastrophic long-term care to help older Americans age at home, funded by a payroll tax. The benefits, up to $4,000 per month, would help individuals who are disabled, have severe cognitive impairment, or are unable to perform two daily living tasks.
However, implementing the program could face opposition due to the need for a mandatory tax increase. Ben Veghte, director of the WA Cares Fund, highlighted the challenge, stating that it is a “tough sell” to tell people they must pay for a benefit they may not need.
Long-term care is a growing issue, with an estimated 7 in 10 people needing care in their lifetime. Yet, many states, such as California, New York, and Massachusetts, are exploring public long-term care programs. Veghte emphasized the need for a multi-faceted approach to address the crisis, involving private industry, government, employers, and family caregivers, as the costs are more than just financial.