'Very Few Seniors Are Prepared Financially' Notes Stinson; Insurance Buying Incentives, Greater Public Education Needed
RICHMOND, Va., April 21 /PRNewswire/ -- Buck Stinson, president of
Genworth Financial's long term care insurance division, informed a House
Subcommittee exploring long term care financing issues this week that as
Americans live longer, "the expected growth in the number of people needing
long term care is staggering." In written testimony referencing recent
research from AARP that projects 12 million Americans will need long term care
by 2020, Stinson noted, "Most seniors are not financially prepared to pay for
long term care needs. According to the Bureau of Census, only seven percent
of American seniors have enough saved to cover even one year of nursing home
care."
Stinson testified before the House Ways and Means Health Subcommittee --
chaired by U.S. Rep. Nancy Johnson (R-CT) -- which met to explore current
financing options for long term care services, public-private sector options
for consumers, and long term care challenges ahead. Rep. Johnson has
advocated the use of tax incentives for the purchase of long term care
insurance and has sponsored legislation in support of her ideas. Genworth has
been a long term care insurance leader for 30 years and a forceful industry
advocate for consumer education about long term care issues.
Stinson's oral and written testimony addressed the current state of the
insurance market, the future of long term care insurance, the benefits of tax
incentives, and the education challenges ahead.
Stinson explained that most Americans are not wealthy enough to fund their
long term care needs through savings -- and Medicaid coverage only becomes
available for long term care if and when individuals deplete most of their
assets. "There is no magic wand that will solve the long term care financing
problems that are looming for millions of Americans," Stinson told the
committee. "In the end, many different approaches will have to be applied if
we are to solve the problem."
Stinson advocated that private long term care insurance play a vital role
in filling the gap between an individual's self-funding and reliance on
government programs. In pledging Genworth's commitment to be a continued
resource for the committee, Stinson noted: "Financial incentives, most notably
in the form of some level of tax deductibility, would most likely produce the
greatest stimulus for more Americans to better plan for their future health
needs." He said that Genworth is fully committed to working in partnership
with policymakers and consumer advocates to better serve the needs of the
nation's aging population.
Stinson's complete testimony is available at http://www.genworth.com, or
at http://waysandmeans.house.gov/hearings.asp?formmode=view&id=2595
About Genworth Financial
Genworth Financial (NYSE: GNW) is a leading insurance holding company,
serving the lifestyle protection, retirement income, investment and mortgage
insurance needs of more than 15 million customers, with operations in 22
countries, including the U.S., Canada, Australia, the U.K. and more than a
dozen other European countries. Genworth is the leading provider of long term
care insurance in the United States. For more information, visit
http://www.genworth.com.
SOURCE Genworth Financial
CONTACT: Neal McGarity of Genworth Financial, +1-203-708-3460/
