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Sen. Klobuchar Announces New Federal Legislation to Help Seniors & Family Caregivers

Legislation Will Also Protect Consumers with Long-Term Care Insurance

August 7, 2007

(St. Louis Park, Minnesota) U.S. Senator Amy Klobuchar announced today that she is introducing federal legislation to assist families who care for aging family members and to ensure the integrity of long-term care insurance policies. 

At a news conference at the Lenox Community Center in St. Louis Park, Klobuchar was joined by Minnesota Attorney General Lori Swanson and by leaders from AARP Minnesota and the Minnesota Senior Federation, as well as representatives from other senior and elder care organizations. 

Debra Ohotto, from St. Louis Park, spoke about the time and financial challenges she and her siblings face as they care for their aging and ailing parents, who continue to live in their own home. 

“Seniors want to be able to live independently and stay in their own homes as long as possible,” said Klobuchar.  “Family support is essential in helping to make that happen.  This is already a major issue for many Minnesota families and it will only get bigger, touching many more families.”

Klobuchar explained:  “Just as the country addressed the needs of working moms and dads in the 1970s, we must now address the needs of our working daughters and sons.”

In May, Klobuchar chaired a Congressional Joint Economic Committee hearing about the impact of elder care responsibilities on families and employers.  She has also held several roundtable discussions in Minnesota with family caregivers.

Klobuchar said her legislation is designed as a starting point to relieve some of the financial and other burdens faced by family caregivers.

“This approach is good for our seniors, for our families, for our businesses and employers, and for all of us as taxpayers,” said Klobuchar.  “We know that providing care to seniors at home is far less expensive than providing care in a nursing home.  We also know that being able to live independently in their own home is a deeply-cherished value for seniors and their families.”

In the coming years, the United States and Minnesota will experience the dramatic effects of an “age wave” as the Baby Boom generation retires and ever more people live into their 80s and beyond.  Minnesota’s population over age 65 is projected to double between 2005 and 2035, to 1.4 million.  The number of Minnesotans over age 85 will also double.  Currently, about 92 percent of long-term care for seniors in Minnesota is provided by family members. 

While some 8 million Americans have already purchased long-term care insurance policies, there have been growing complaints about the refusal of insurance companies to pay out appropriate and timely benefits.

Klobuchar said she is introducing two bills – the AGE (America Giving care to Elders) Act and the Long-Term Care Insurance Integrity Act – to accomplish three goals:

- Provide financial relief to family caregivers by expanding the existing federal Dependent Care Credit to include elder care costs. Families will be able to qualify for up to $1,200 each year to offset a wide range of costs in caring for an aging or ailing relative.

- Enhance support for family caregivers by establishing the National Caregiving Resource Center as a central clearinghouse where families, public agencies and private organizations can learn about best practices and promising innovations to support families in their caregiving roles.  The legislation will also strengthen the National Family Caregiver Support Program which helps fund direct services to family caregivers.

- Protect consumers with long-term care insurance by establishing a third party review board to address one of the most common complaints about these policies:  The denial of appropriate and timely benefits by insurance companies. Currently, those who are denied benefits must seek recourse through the court system, which is expensive and time-consuming at a time when people are most vulnerable and in need.  In addition, Klobuchar is requesting that the U.S. Government Accountability Office investigate claims practices in the long-term care insurance industry.

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