Creating an “above-the-line” deduction for people who buy long term care insurance can help the federal government and states reduce the soaring cost of Medicaid.
Joyce Ruddock, vice president of long term care insurance at the main life insurance unit at MetLife Inc., New York, delivered that message, Wednesday at a hearing on Medicaid waste organized by the Senate Finance Committee.
“By the year 2030, Medicaid’s nursing home expenditures could reach $134 billion a year – up 360% over 2000 levels,” Ruddock said.
Ruddock, who testified on behalf of the American Council of Life Insurers, Washington, as well as MetLife, said encouraging the purchase of private LTC insurance through tax incentives increase the number of Americans who can pay for their own long term care.
Ruddock spoke during a hearing session that dealt with the issue of families transferring the assets of loved ones in an effort to get Medicaid to pay for the loved ones’ long term care.
Other sessions dealt with issues such as drug costs and fraud.