Is “Socialized” Long Term Care the Answer?

As the Baby Boomers get grayer, who will pay for their long term care?

I’m not trying to rag on this guy, but I can’t help but voice my opinion. In Elder Law Prof Blog, the writer made a comments about a New York Times article, including his opinions about Long Term Care insurance (he’s apparently against it!) and made a suggestion about how we’ll solve our country’s long term care financing problem. His advice:

snip - “The solution to the long term care problems we’ll be
facing in the next twenty year? A long term care benefit in Medicare,
financed by a small additional payroll tax on middle aged and older
wage earners.” - snip

Well, that sounds like a great idea, Ed. Your suggesting something like socialized medicine only for long term care.

Of course, that would mean you’d pay more into FICA ( our Social Security Trust Fund ) and you’d get less money in your pay-check. Traditionally, Americans have not snuggled up to the idea of paying more taxes for socialized medicine, let alone socialized long term care. But it just might help solve the problem many Americans will have paying for long term care. If it’s done right… and very soon.

Yet, I wonder: If we can’t seem to put together a socialized medicine program, like the rest of the “civilized’ countries on our planet have done, why would we think we could create a socialized program for long term care?

And why would only the middle aged and older folks pay extra into the fund, when a large percentage of people needing long term care are under 65 years old? Many of them are under the age of 30!

Now don’t be deceived about Medicare and Social Security! According to the Bush Administration Social Security will be gone by 2040. You can find the article stating this on the Elder Law Prof Blog’s May 2, 2006 blog entry “SS, Medicare Trustees Report–It’s Even Worse Than We Thought”. Don’t believe it!

The above article, put out by the U.S. government press office, is not true (unless this administration has been secretly pilfering Social Security funds) ! If they haven’t been pilfering, then the article is simply another manipulative scare tactic to manufacture the consent of American citizens and Congress to allow for changes in the historic and current laws concerning Social Security. And while it is true that there are less younger people who are working and contributing to the fund, there are also more older people who, whether from need or by choice, have continued to work. Long gone are the days when most people can retire at age 65.

Contrary to what Bush has both said and implied, Social Security IS a Trust Fund. The monies in it must be held in Trust for Americans that pay into the Fund. That’s the Law and it is a very good law which should never be changed. The Social Security Trust Fund is still doing it’s job. We will not start running out of money by 2018, as Bush stated in his Tampa, Florida speech to a pre-selected audience.

We will not run out by 2040, either. But we must continue to pay a percentage of our income into FICA so that it can pay us when we are disabled, unemployed or over 65. I’m hate paying taxes when it is used for war and padding big wigs’ pockets, but we must pay into our Trust Fund to keep it viable. And, in my opinion, Ed at Elder Law Prof Blog is right about this point: It would behoove us as a nation to put even more money into our Social Security fund. Since long term care will likely become America’s biggest health concern, the extra money could be earmarked for long term care, if need be.

Concerning FICA, FDR said, “We put those contributions here so as to give contributors a legal, moral, and political right to collect their pensions and their unemployment benefits. With those taxes in there no damn politician can ever scrap my social security program.”

HOWEVER, if any form of a Social Security privatization law is passed (or “personalized funding” as Carl Rove’s spin masters tell Bush to call it), the Trust will be broken and, since there is a HUGE amount of money in it, it can, and likely will be, raided. Yes, there are people in government who would love to take money from our Social Security Trust Fund and use ot for things like military operations. They will try anything to break the Trust, including lying.

As it stands now, Americans pay into FICA with every pay check or every quarterly payment, unless we use a separate pension fund like my mother did when she was a teacher in California. A chunk of our hard earned money is whisked away, before we have a chance to miss it. It’s designed that way, because most people do not and will not adequately fund their retirement. There is always something else to spend money on - until it’s too late. So FICA assures us that we will have SOMETHING in place when we need it.

To change laws pertaining to Social Security would put our Social Security Trust Fund in grave danger along with the lives of millions of Americans who completely depend upon that monthly income - the unemployed, the disabled and the elderly.

Fortunately, a bill to privatize Social Security was not passed by Congress in 2006. Senator McCain supported the bill that would have destroyed our Social Security system..SHAME on you John McCain!!! Luckily for all Americans, Senator Boxer helped to uncover the bill as the scam it was. Thank you, Sen. Boxer!

That bill was stopped, but we must be vigilant, as there are more bills like it waiting to be introduced. Keep your watchful eyes peeled.

Whatever your views on the appropriate solution for long term care in this country, please do make sure you voice your opinion AGAINST any bills that include Social Security privatization or personalization.

And until we have a socialized long term care program (don’t hold your breath) be sure to protect yourself, your family and your savings with long term care insurance.

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