Suozzi Reintroduces WISH Act to Support Long-Term Care – Insurance News

Older Americans are more likely to suffer from severe cognitive impairment or be unable to perform at least two activities of daily living. At the same time, this aging and vulnerable population has fewer people who can help them with their needs.

Congressman Tom Suozzi, D-N.Y., announced his plan to reintroduce the Well-Being Insurance for Seniors to be at Home, or WISH Act, during the National Association of Insurance and Financial Advisors’ Peak 65 Impact Day.

Suozzi introduced the WISH Act in 2021, but the bill received little traction in Congress. Suozzi said he plans to try again, describing the issue of elder care in the country as “a real life issue for much of America.”

“We have to deal with the coming big storm in America,” he said. “People have fewer children, children are moving away from their community. There are fewer people available to care for more older people who need help. We recognize that the long-term care insurance industry cannot provide affordable products because people living longer than average are breaking the actuarial tables.”

The WISH Act targets benefits for people with disabilities and is funded by an additional 0.6% payroll tax, split equally between employees and employers.

Eligible for long-term care benefits would be applicants who have reached retirement age, have paid taxes for at least six quarters, are unable to perform at least two activities of daily living, or have severe cognitive impairment or are expected to be disabled for at least one year or until death and a waiting period after the onset of incapacity for work.

The waiting period would depend on income: Beneficiaries with incomes in the lower 40th percentile would receive benefits after one year. Then, for every 1.25 percent increase in lifetime earnings, the waiting period would increase by one month (e.g., a person in the 50th percentile would have to wait a year and eight months for benefits, while a person in the 100th percentile would have to wait). ). wait five years). This ensures that benefits go to those most in need as quickly as possible while keeping the program actuarially sound.

The Attendance Allowance would be an amount of money equal to the average cost of six hours of paid personal assistance per day, or $3,600 per month.

“This will help the private sector develop affordable products by taking the disastrous aspect of long-term care off the table,” Suozzi said.

He said he plans to hold a national conference in the spring of 2025 that will bring together those from the private sector who work in long-term care, as well as elder advocates, trade groups and labor groups to discuss how a public/private partnership could be created can help Americans finance disastrous long-term care.

“We need to build a national coalition to bring this issue to the forefront,” he said.

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Susan Rupe is managing editor for InsuranceNewsNet. She previously served as communications director for an insurance agent association and was an award-winning newspaper reporter and editor. Contact them at (email protected).