HEARING - U.S. Senate Special Committee on Aging

60
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Finally, given that Congress finds adequate funding to meet these
priorities, it couid then turn its attention to the catastrohic needs facing
a limited rudber of citizens who cannot afford to purchase private coverage
which fills in Medicare coverage "gaps'. Since the vast majority of Medicare
beneficiaries can afford private supplemental insurance, solutions should be
limited to financing catastrophic benefits for the limited numxer of near-poor
not covered by Medicaid. Tax subsidies for those who are partially able to
purchase private insurance would limit the financial burden on the federal
goverrlnent.
CATASTROPHIC COVERAGE NEES REGARDING LONG TERM CARE
Tragically, the problem few elderly fail to anticipate is that neither
Medicare nor private Medicare supplemental policies cover long term custodial
Care. Proposals to expand Medicare benefits are not a solution because acute
care expenses are not the usual cause of catastrophic expenses anong the
elderly. The real problem is chronic long term care. Based on a recent study
financed by the National Center for italth Service Research, for those aged.
who spent more than $2,000 out-of-pocket, 81 percent of their additional
expenses ware for nursing home care.
The costs associated with long term care insurance are so vast that it is
hard to imagine how the federal goverrment could finance every citizen's needs
in this area. Thus multiple financing mechanisms must be utilized. Those
with means will have to provide for their own protection through private
insurance. Those with limited means might receive tax subsidies to purchase