‘Perfect storm brewing’ that will leave many aging seniors without necessary care, Dem lawmaker warns

Democratic New York Rep. Tom Suozzi said Tuesday that there is a catastrophe brewing for the country's aging population, and he wants to do something about it.

Alongside Republican Rep. John Moolenaar, Suozzi introduced the 'Well-Being Insurance for Seniors to be at Home Act' on Tuesday, which seeks to help more of the country's increasingly older population obtain long-term home care insurance.

'Currently, 10,000 Americans every day are turning 65-years-old,' Suozzi told reporters during a press call on Tuesday, and, in five years, 6,000 Americans will turn 85 every day. Suozzi also noted that right now, only about 4% of seniors are covered by long-term care insurance.

'One of the main causes of people becoming homeless — new homeless people — is turning 80 years old, because a lot of people are becoming destitute as they get old, and they face what are called, ‘Their inability to conduct daily activities of living,'' Suozzi said. 'And right now, very few people have long-term care insurance, and people will end up going into nursing homes. And not only can the nursing homes not handle this volume of people, but the Medicaid system will go bust, and two thirds of the people in America that are in nursing homes are paid for with Medicaid.'

In addition to the increasingly growing senior population in the U.S., Suozzi also cited societal factors that are making it harder for aging and disabled seniors to receive the at-home care they need. One is the fact that Americans are having fewer kids, so there will be fewer of them to take care of their aging or disabled parents. Another was the fact that kids are increasingly moving to other parts of the country away from their parents, again increasing the burden for seniors to figure things out on their own.

'There's a lot of people becoming senior citizens right now because the baby boomers, there's less kids available to take care of them, and the kids that are alive don't necessarily live where their parents live. So we've got this big perfect storm brewing, and Medicaid will never be able to solve this problem,' according to Suozzi. 'And nursing homes — there's just not enough nursing homes. There's not enough money to pay for the nursing homes for all these people. So my legislation is designed to try and encourage the private sector to create long-term care insurance that is affordable.'

Known by its acronym, WISH, Suozzi and Moolenaar's new bill seeks to create a federal 'Catastrophic Care Fund' that will help cover some of the cost-burden of long-term care. The goal is to encourage private insurers to develop and market affordable and accessible long-term care insurance, which, overtime, they have ceased providing more broadly. The reason, Suozzi said, is it was just not profitable enough for them, as most seniors with long-term care insurance were outliving their expected life terms and costing insurance companies a lot of money as a result.

Suozzi likened his new plan to Medicare Part B, another similar cost-sharing program that has pushed insurers to incentivize customers to enroll. Seniors would be able to benefit from the newly created fund on a tiered basis, according to each person's income level.

The Democrat lawmaker pointed out how the WISH Act will help reduce the cost burden of federal healthcare programs like Medicare and Medicaid, which can help pay for the fund. He also suggested a payment plan involving an increased income tax shared by both employees and employers, but Suozzi noted that plan was unlikely to get the GOP support necessary. Another potential payment option for the new long-term care fund could stem from reforms to Social Security, the congressman added.

Besides the 'perfect storm' that is brewing for seniors, a second storm is also brewing on Capitol Hill right now in regard to how to fund the federal government. Republicans are ramping up reconciliation efforts and, as part of that framework, they are looking for roughly $800 billion in Medicaid cuts. While the Wish Act could help lower the amount of necessary cuts during reconciliation, Suozzi said he feared it was too tight of a window to get enough lawmakers on board. 

'I guess there's an argument that it could go in there, if we could demonstrate between now and then that it'll be a big savings in Medicaid,' Suozzi told reporters. 'I see this is taking the full term of getting people educated about the issue, getting more people interested in the issue, and getting senior advocacy groups and private insurers to advocate on behalf of this idea. So it's not going to happen on its own. It will have to be part of something bigger, but not, I think, until we've educated people about the seriousness of the issue.'