HEARING - U.S. Senate Special Committee on Aging

103
Itmr 4
COMMENTS OF CONSUMERS UNION*
ON CATASTROPHIC ILLNESS EXPENSES
(DEPARTMENT OF HEALTH AND HUMAN SERVICES
REPORT TO THE PRESIDENT)
January 8, 1987
INTRODUCTION AND SUMMARY
Catastronhic Illness Expenses (Department of Health and
Human Services Secretary Bowen's Report to the
President) (hereinafter, the Report) identifies three important
segments of the health care problem facing Americans -- the need
for,
1. acute care catastrophic protection for the elderly;
2. long-term care protection alternatives; and
3. catastrophic health expense protection for the
general population.
The Report recommends (among other things):
1. restructuring the Medicare program to provide
catastrophic protection for the elderly with an
actuarially sound additional premium;
2. providing incentives through the tax system for
savings earmarked for long-term care expenses and for
the purchase of long-term insurance; and
3. encouraging state initiatives to extend catastrophic
insurance protection to the general population.
*Consumers Union is a nonprofit membership organization
chartered in 1936 under the laws of the State of New York to
provide information, education and counsel about consumer goods
and services and the management of family income. Consumers
Union's income is derived solely from the sale of Consumer
Reports, its other publications and films. Expenses of
occasional public service efforts may be met, in part, by
nonrestrictive, noncommercial contributions, grants and fees.
In addition to reports on Consumers Union's own product testing,
Consumer Reports, with approximately 3.5 million paid
circulation, regularly carries articles on health, product
safety, marketplace economics and legislative, judicial and
regulatory actions which affect consumer welfare. Consumers
Union's publications carry no advertising and receive no
commercial support.