COLORADO CONFRONTS LTC CRISIS

 

Nearly every state is struggling with significant fiscal pressures or even a budget shortfall in the face of reduced tax revenue and higher costs.  Medicaid is often the largest human services expense in a state budget and long-term care is usually the largest component of Medicaid spending. Thus, long-term care spending cuts are in play across the country as state governments struggle to adjust to our new economic reality.  While Medicaid spending cuts may keep the proverbial ship afloat temporarily, how should states prepare for the future?  The latest effort in Colorado may point the way.  The Colorado legislature is now considering a resolution encouraging private financing of long-term care to help ensure the viability of Colorado’s safety net for the truly needy.

 

A resolution titled “House Joint Resolution 02-1003:  Concerning the Importance of Long-Term Care Insurance, and, in Connection Therewith, Encouraging Citizens to Purchase Private Long-Term Care Insurance Policies” has already passed the Colorado House and is now before the Colorado Senate for consideration.  (The House version, which passed on January 16, 2002, is online in .pdf format at:

 http://www.leg.state.co.us/2002a/inetcbill.nsf/fsbillcont/ECC03455A8FF58F487256AC00047F46D?Open&file=HJR1003_eng.pdf).

 

An excerpt from the resolution follows:

 

“WHEREAS, The government provides a safety net for the impoverished, but it cannot afford to pay for long-term care for everyone who will need it; and

 

WHEREAS, Failing to protect household assets by planning for long-term care with private insurance can have dire consequences that result in the loss of those assets; and

 

WHEREAS, It is imperative that people begin now to plan for their long-term care needs; and

 

WHEREAS, Private long-term care insurance can help pay for most of the cost of long-term care, as well as provide protection against inflation; and

 

WHEREAS, Increasing the number of private options for long-term care is not only important, but essential for the well-being of Coloradans; now, therefore,

 

Be It Resolved by the House of Representatives of the Sixty-third General Assembly of the State of Colorado, the Senate concurring herein:

 

That the General Assembly strongly encourages all Coloradans to investigate the costs of long-term care and the benefits of having private long-term care insurance; and

 

That the General Assembly urges Coloradans to actively pursue the purchase of appropriate long-term care insurance since the government can provide assistance for long-term care to only the most destitute, and not to all those who will need it; and

 

That the General Assembly urges the private sector to increase the number of options for privately funded long-term care in Colorado.”

 

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