FOR IMMEDIATE RELEASE: Monday, May 17, 2004
Contact: Rep. Tom Sands (319) 750-1423

Sands disappointed by governor’s actions on long-term care incentives

(DES MOINES, Iowa) – State Rep. Tom Sands, R-Columbus Junction, today expressed dismay regarding the veto of a bill that would have offered incentives for Iowans to purchase long-term care insurance.  The bill, Senate File 2183, passed 96-0 in the House and 35-12 in the Senate.

“One of the biggest budget issues facing the future of this state is paying for Medicaid,” said Sands, who floor-managed the bill.  “Taking action to reduce the growth in this program is essential for this state’s growth.  That’s what we tried to do with this bill.  It is just disheartening for the Governor to say no to taking proactive steps that help our seniors and our budget.”

Senate File 2183 was a long-term remedy to the state’s ballooning Medicaid costs, as the bill would have provided incentives for Iowans to invest in long-term care insurance.  By having more Iowans prepared to pay for long-term care, Medicaid’s bill for nursing home care would be reduced.  The bill would have encouraged Iowans to purchase this form of insurance while also having the Insurance Commissioner begin to standardize the plans being offered in Iowa.

“Right now, we have seniors and people my age looking at long-term care insurance as a way to prepare for their golden years”, said Sands, a Columbus Junction Republican.  “Yet, we have no state policy that standardizes policies so Iowans know what they are purchasing.  This bill would have taken that step and allowed Iowans to qualify for federal and state tax deductions for the premiums they pay.”

Sands said while many people are beginning to invest in this coverage, many do not know what they are purchasing or how they will be able to obtain the benefits of these plans.  This can have disastrous results for seniors and their families.

“One example of why this bill is so badly needed is a story relayed to me by another representative.  A lady in their district had invested over $40,000 in long-term care insurance coverage.  The time arrived for her to go to a nursing home for care, and her family assumed that since she had paid for the insurance coverage everything would be taken care of.  It didn’t happen.”

“Because the insurance company said this person had not spent enough days in the hospital prior to going in the nursing home, they would not pay for the nursing home care.  For the $40,000 spent on premiums, this lady received no benefit from that investment.  Senate File 2183 would have enabled Iowans to be informed on their policies and prevent situations like that from occurring.”

“High quality and affordable health care is a fundamental need for the citizens of Iowa of every age,” said Sands.  “This bill would have given seniors increased choice and security for them and their families, while protecting the state’s budget.  In the end it is our children and grandchildren who will pay for this veto, as the state has to put more dollars into Medicaid instead of education.”

The veto was one of 18 bills the governor vetoed on Friday.  More than half of those bills passed with broad, bipartisan support.

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