Posted on: Thursday, December 19, 2002
ISLAND VOICES
Set up CarePlus plan now
By Ruth Dias Willenborg
Kailua resident
The CarePlus plan does need to be kept moving, as your Dec. 16 editorial so states. However there are several factors that should be brought to public attention before they jump the gun on adverse reactions.
Forget it is a "tax." When used interchangeably, it is really an "insurance premium" for all to participate in an inexpensive long-term care package that will keep many people in their homes and out of expensive full-time care, which is ultimately paid by taxes, both federal and state for Medicaid.
Tax credits for long-term care insurance do not solve the problem since only about 6 percent of the population have bought long-term care insurance with or without tax credits. Those who can afford to pay the high premiums are doing so to save their assets for their survivors. This plan creates a limited, long-term care coverage for those who cannot afford the current high premiums of private insurance with or without tax credits. It also covers those eligible at any age, any physical condition, whereas most long-term care policies do not cover anyone under the age of 40.
It will also save taxpayer dollars, as well as make the taxpayer Medicaid dollars go further. These state expenses will increase as our older population rapidly grows. This state, as well as others, every year are over budget in Medicaid dollars paid out to cover these gap people — those who have a few dollars saved, but not enough to cover nursing home care. They are sent to nursing homes or hospitals where the care expenses run way higher than if they receive lower-cost treatment at home.
The plan is sound, and many experts in the fields were consulted by those of us in the past, as well as this temporary board of trustees. We understand that some insurers have expressed an interest in underwriting a new set of policies that could be built around this plan, with a more affordable and chooseable menu, thus making it possible for more people to buy these long-term policies as a supplement.
Yes, it will take time to start up the fund — and a lot of us now will not be part of the recipients. However, this must be set up now so that the future fiscal stability of this state is not consumed by these expenses. Those in the work force who will be paying into this fund will be insuring their future needs, as well as others and the state's fiscal reliability.
