(1) As Congress works to limit future debt and 
deficits, our Nation cannot afford to overlook Medic-
aid’s long-term care financing crisis. 
(2) The Congressional Research Service reports 
Medicaid long-term care spending has grown at an 
average annual rate of 6.5 percent since 1995. 
(3) The National Association of State Budget 
Officers reports that Medicaid spending has already 
exceeded most components of State budgets, includ-
ing K–12 education programs. 
(4) According to the Congressional Budget Of-
fice, Federal Medicaid spending on long-term care 
will grow from $73 billion in 2012 to $1.148 trillion 
in 2021. 
(5) The Department of Health and Human 
Services has reported that— 
(A) approximately 70 percent of individ-
uals who are over the age of 65 will need some 
kind of long-term care services; and 
(B) at some point more than 40 percent of 
such individuals will require nursing home care. 
(6) In 2005, the Government Accountability Of-
fice projected that by 2040 the number of individ-
uals who are 85 years of age or older, which it finds 
is the age group most likely to require long-term 
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care services, is projected to increase more than 250 
percent from 4,300,000 individuals in 2000 to 
15,400,000 individuals in 2040. 
(7) The Alzheimer’s Association reports more 
than 13,500,000 seniors could develop this disease 
by 2050. 
(8) Annual industry surveys indicate the me-
dian annual rate for a private nursing home room in 
the United States reached $81,030 in 2012. 
(9) Encouraging middle-income individuals in 
the United States to anticipate and plan for their fu-
ture long-term care needs will help them achieve 
greater health and financial security, as well as 
greater independence, choice, and control over the 
services they need in the setting of their choice. 
(10) Advance planning by family members will 
help to protect caregivers’ health, financial security, 
and quality of life. 
(11) In 2005, the Department of Health and 
Human Services warned that the retirement plans of 
many Americans are at risk simply because those 
Americans do not understand who pays for long- 
term care and therefore have not planned for the 
possibility of needing to finance such care. 
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(12) Only about 1 in 10 Americans over the age 
of 55 has enrolled in private long-term care cov-
erage. 
(13) The Government Accountability Office re-
ports State Medicaid programs have, by default, be-
come the major form of insurance for long-term care 
services. 
(14) A 2011 hearing before the Committee on 
Oversight and Government Reform of the House of 
Representatives revealed that someone with up to 
$750,000 in home equity may qualify as poor under 
Federal Medicaid rules. Witnesses at the hearing 
said Federal law also disregards the entire value of 
other financial resources when determining an indi-
vidual’s eligibility for Medicaid. 
(15) In 2005, the National Governors Associa-
tion concluded new efforts need to focus on how to 
encourage personal responsibility and discourage re-
liance on Medicaid for coverage of long-term care 
services. 
(16) Professional actuaries have stressed the 
Federal Government’s financial interest in reducing 
future Medicaid spending by improving affordable 
long-term care options for middle-income individuals 
in the United States. Such individuals represent ap-
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proximately 83 percent of households suited for pur-
chase of long-term care coverage, with an average 
preretirement household income of $75,000 and av-
erage assets of approximately $100,000. 
(17) Section 6021 of the Deficit Reduction Act 
of 2005 (Public Law 109–171) expanded the State 
Long-Term Care Partnership Program with the goal 
of— 
(A) reducing future Medicaid spending on 
long-term care services; and 
(B) improving choices by encouraging mid-
dle-income individuals in the United States who 
might otherwise rely upon Medicaid to purchase 
comprehensive, front-end, private, long-term 
care insurance coverage through the Partner-
ship. 
(18) To encourage Americans to purchase cov-
erage described in paragraph (17)(B), the State 
Long-Term Care Partnership Program provides pro-
tection from Medicaid estate recovery if policy-
holders use their private coverage and still need 
Medicaid to provide coverage for long-term care 
services. 
(19) According to the four States operating a 
State Long-Term Care Partnership Program since 
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the 1990s, only a small percentage of Partnership 
policyholders using benefits have exhausted their 
policies and relied on Medicaid, ranging from 2.4 
percent of such policyholders in California to 7.4 
percent in New York. 
(20) More than 40 States have established 
Long-Term Care Partnership policies since Congress 
expanded the State Long-Term Care Partnership 
Program in 2005. 
(21) Some States, including Connecticut, have 
worked to increase the likelihood of Medicaid savings 
under the State Long-Term Care Partnership Pro-
gram by developing measures of cost effectiveness 
for long-term care insurance policies. 
(22) Section 6021(c) of the Deficit Reduction 
Act of 2005 require the Secretary of Health and 
Human Services to report annually to Congress on 
the impact of the State Long-Term Care Partner-
ship Program on Federal and State Medicaid ex-
penditures. 
(23) The Secretary of Health and Human Serv-
ices has failed to comply with this mandatory report-
ing requirement since the enactment of the Deficit 
Reduction Act of 2005. 
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