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Genworth's Stinson Informs House Subcommittee That Expected Growth in the Number of Americans Needing Long Term Care is 'Staggering'

'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/