ACLI Lauds Clinton, Congress for Providing Long-Term Care Insurance to Federal Employees, Military.

WASHINGTON, Sept. 19 /PRNewswire/ --

The American Council of Life Insurers (ACLI), which represents 87 percent of the private long-term care insurance industry, praised President Clinton today for signing the Long-Term Care Security Act into law -- and providing as many as 20 million current and retired federal employees, active and retired military personnel and their families with the opportunity to obtain private long-term care insurance as a self-funded benefit.

"Long-term care insurance is an integral part of employees' retirement security -- because without this protection, an individual's retirement savings can be wiped out with just one long-term care episode," said David Martin, chairman of the ACLI's Long-Term Care Committee. "The White House and Congress deserve credit for making the federal government a 'model employer' and establishing a program that employers nationwide should consider following."

Martin also credited President Clinton and Congress with focusing much- needed public attention on a problem that already plagues one in four American families and that will reach crisis proportions as the Baby Boomer generation reaches retirement.

Pointing to the recent ACLI studies Who Will Pay for the Baby Boomers' Long-Term Care Needs? and Can Aging Baby Boomers Avoid the Nursing Home?, Martin noted that when the last Boomers retire 30 years from now, no less than 32 states will have the same demographics that Florida does today. Total nursing home expenditures could reach $330 billion -- equal to today's entire Social Security budget.

ACLI research indicates that the cost of virtually all long-term care services -- including home care, adult day care, assisted living and nursing home care -- will quadruple over the next three decades. At the same time, Medicaid expenditures for nursing home care are expected to jump from about $29 billion a year to about $134 billion.

"Over the long run, encouraging the purchase of private insurance will be crucial for meeting the nation's long-term care needs without financially crippling individuals and already strained government programs," Martin said.

The ACLI is working for the passage of legislation to establish an above- the-line federal tax deduction for long-term care insurance premiums -- essentially the same kind of deduction already allowed for IRA and 401(k) contributions. At least 21 states already offer a tax credit or tax deduction for LTC insurance premiums.

The American Council of Life Insurers is a Washington, D.C.-based trade association. Its more than 400 member companies offer life insurance, annuities, pensions, long-term care insurance, disability income insurance and other retirement and financial protection products. ACLI member companies have 87 percent of the long-term care insurance in force in the United States.