Proposed legislation being offered by Sen. Pat Toomey (R-PA) would allow those with qualified retirement accounts like 401(k)s and IRAs to use money from their qualified accounts penalty-free to pay for their Long-Term Care Insurance premium.

Matt McCann, one of the nation's leading Long-Term Care Insurance specialists, announced his support for the proposal. In a written statement for the record to U.S. Senate Finance Committee, Subcommittee on Health Care, McCann said the proposal offers an opportunity to help American families lessen the emotional, physical and financial burdens of long-term care.

McCann's statement is as follows:

Statement for the Record

Submitted to the

U.S. Senate Finance Committee, Subcommittee on Health Care

Regarding:

"Alzheimer's Awareness: Barriers to Diagnosis, Treatment and Care Coordination"

November 20, 2019

I appreciate the opportunity to submit this statement for the record on "Alzheimer's Awareness: Barriers to Diagnosis, Treatment and Care Coordination."

First, I wish to thank both Sen. Pat Toomey (R-PA) and the Ranking Member Debbie Stabenow (D-MI) for having this hearing. It is my hope that the U.S. Senate will continue to bring to the attention of all Americans the issues of aging—specifically, the financial costs and burdens that are placed on American families due to longevity.

In addition, I fully support Chairman Toomey's role in bringing attention to this issue, and for advocating for effective solutions that can benefit all Americans. Sen. Toomey's proposal to allow those under the age of 59 to use money from qualified accounts without penalty could help more Americans afford Long-Term Care Insurance.

This would provide many families with the peace-of-mind of knowing they can safeguard their hard-earned savings, prepare for a successful future retirement, and have access to their choice of quality care. And it doesn't require them to drain their assets or place tremendous burdens on family members, who often become full-time caregivers.

I have been in the Long-Term Care Insurance industry since 1998 after seeing my mother, at age 59, be impacted by long-term care. When I first started in this industry and spoke to people about long-term care often their first reaction was, "they already have a person for their lawn care."

Today, many more Americans are too aware of the impact long-term care has on families and finances.

Since 1998, I have helped thousands of American families all across the country plan with affordable Long-Term Care Insurance. I have also seen first-hand many of those clients using their benefits, thereby giving their families the time to be families and not caregivers.

We often read that Long-Term Care Insurance is expensive. While it sure can be designed to be expensive, the fact is these policies are custom-designed and can be very affordable for many people.

Long-Term Care Insurance also works very well. According to the American Association for Long-Term Care Insurance, a national trade group, over $10.3 billion in long-term care benefits were paid to American families in 2018 alone. This money allows families to have their choice of quality care in the settings they desire. Furthermore, without the insurance benefits, many of those same families would have needed to spend a substantial percentage of their retirement assets to pay for their care or be forced to have their adult children become caregivers (or both). Some of them would have exhausted their assets and been forced to access Medicaid's long-term care benefit.

The fact remains that, for many Americans, Long-Term Care Insurance is an affordable way to address the financial costs and burdens that come with longevity and its related health problems.

Younger people have already started purchasing Long-Term Care Insurance prior to retirement. In my practice today, most of my clients are in their 50s, and this has been a trend for others who specialize in Long-Term Care Insurance as well.

However, some people in their 50s find it difficult to prioritize paying the premium—not because it is too expensive but because their current cash flow does not allow it. There are ways the federal government can encourage more Americans to plan in advance for their future long-term care expenses. These include:

• Sen. Toomey's proposal, which would allow those with qualified retirement accounts like 401(k)s and IRAs, to pay for Long-Term Care Insurance on a tax-free basis. This would give many families the money to easily pay for premiums without impacting their current cash flow. This proposal should become law.

• Additional tax incentives, like a tax credit for those who own policies, would also help with affordability. Even a modest credit or deduction would have an impact beyond the tax benefit itself because it would place the issue of long-term care "front and center".  

• Funding for a national educational campaign would alert consumers about the need for long-term care planning and the benefits of owning Long-Term Care Insurance. This includes promotion of the Long-Term Care Insurance Partnership Program.

More public awareness is essential. For example, too many people are unaware of the Long-Term Care Insurance Partnership Program, in which 45 states participate. This program allows a family to purchase a plan that matches their savings, making the policies even more affordable.

The dollar-for-dollar asset protection provided by Partnership-approved policies provides an extra incentive for people to do advanced planning. It also encourages the coverage to be custom designed, so people do not over-insure.

Furthermore, as people own Long-Term Care Insurance in greater numbers, it will reduce the pressure on the Medicaid program allowing Medicaid to provide important benefits to those who have little or no savings.

Thank you for this opportunity to provide my thoughts on this enormously important issue which impacts families every day. The individuals and organizations who market and service Long-Term Care Insurance provide an outstanding resource: on the frontlines, we are addressing those who are in denial of the need for planning, and we are assisting those with policies at the time of claim. I look forward to continuing my efforts so more American families don't have to worry about how to take care of a loved one or wonder where the money to do so will come from. With advanced planning, they can spend their time being "family," loving and supporting, without the stress and strain of having to deal with everything on their own. We have an opportunity to help them lessen the emotional, physical and financial burdens of long-term care, and we should take it.

end of statement

Matt McCann assists consumers nationwide using a unique method where he speaks with a consumer on the telephone while viewing his computer screen on their computer. This provides a pressure-free way to learn about these products and their various options available from the many companies available. He also works with many financial advisors helping them assist their clients.

McCann recommends consumers start their research into planning for the financial costs and burdens of aging before they retire. He recommends reviewing this online guide to long-term care planning - https://www.ltcnews.com/resources/guides/the-ultimate-long-term-care-insurance-guide  

Consumers can learn more about long-term care planning at https://mccannltc.net/resources/faq. On his website, there is a link to obtain free quotes from all the major companies.

McCann notes that there are available tax incetives for some people and businesses. In addition, partnership policies offer additional asset protection. 

Long-Term Care Insurance is underwritten based on your health history. This includes the medications you are taking and other factors. Every company has different rules. A Long-Term Care Insurance specialist, like McCann, will help design an appropriate plan and match you with the best company offering the best value.