Democratic presidential nominee and incumbent Vice President Kamala Harris recently made a media blitz in an effort to appeal to voters ahead of next month’s presidential election, where she’ll face off against Republican nominee and former President Donald Trump.
While Harris and Trump have unique experiences they’ll bring to the table when it comes to their influence on the Federal Housing Administration (FHA)’s Home Equity Conversion Mortgage (HECM) program, the recent media push saw Harris address senior-specific issues including the availability of in-home care.
In an appearance on ABC’s long-running talk show, “The View,” Harris was asked by co-host Sunny Hostin about prospects for long-term care by relating a personal story.
“I’m part of what they call the ‘sandwich generation,’” Hostin began. “I’m an only child, and I will likely be responsible for taking care of my children and my parents at the same time. Her application for long-term health care was denied because of a pre-existing health condition. You are announcing on our show a plan to ease the financial and emotional burdens on families like mine, caring for our aging loved ones. What is that plan?”
Harris said that the issue was also personal for her, since she was in a similar situation when caring for her own mother, who died in 2009.
“Taking care of a parent means trying to cook what they want to eat,” Harris said. “It means picking out clothes for them that are soft enough [that] it doesn’t irritate their skin. It means trying to think of something funny to make them laugh or smile. There’s so much about that that really is about giving folks dignity.”
Harris also acknowledged the high number of people in the sandwich generation who find themselves stretched for both time and financial well-being.
“It’s almost impossible to do it all, especially if they work,” Harris said. “We’re finding that so many are then having to leave their job, which means losing a source of income, not to mention the emotional stress. So, what I am proposing is that we allow Medicare to cover in-home health care.”
Harris also spoke about the need to support the overwhelming desire most seniors have, which is to age in place in their homes.
“People may be declining in skills to some extent, but their dignity and pride have not declined,” Harris said. “They want to stay in their home; they don’t want to go somewhere else. Plus, for the family, sending them to a residential care facility or hiring somebody is so expensive.”
In terms of financing such a proposal, Harris said that the plan is to continue bolstering Medicare’s ability to negotiate prescription drug prices. This would build on the ability it has now to negotiate prices for 10 specific drugs — which will add to the program’s savings and facilitate more spending in areas like in-home care.
“Those resources are best put toward helping a family like the one you’re describing,” Harris said. When asked about getting insurance companies involved, Harris said her plan is specifically focused on Medicare.
Regarding her opponent, the Trump campaign and 2024 Republican Party platform describes a provision related to in-home care.
“Republicans will shift resources back to at-home senior care, overturn disincentives that lead to care worker shortages, and support unpaid family caregivers through tax credits and reduced red tape,” the platform states.
It also describes a desire to protect the Medicare program from “being financially crushed by the Democrat plan to add tens of millions of new illegal immigrants to the rolls of Medicare,” and that the party vows “to strengthen Medicare for future generations.”
The platform also explains the 2024 Republican position on other elements of policy for older Americans, including support for “increased focus on chronic disease prevention and management, long-term care and benefit flexibility,” it reads. “We will expand access to primary care and support policies that help seniors remain in their homes and maintain financial security.”
Politifact has rated the claim related to adding illegal immigrants to Medicare rolls “mostly false.” The outlet explained that some of the claim’s basis comes from Harris’ 2020 campaign for president in which she stated she supported “Medicare for All.” Harris said she no longer supports such a plan.
LTC (long term care) has long been a reason given by the industry for getting a HECM in particular, since proceeds can be used to pay for such costs and the line of credit can provide a growing reserve for such costs in the future.
Recently there have been comments about using the proceeds to pay for LTCI (LTC insurance). This may or may not result in problems for either the HECM originator or the LTCI producer. Most originators are familar with the federal rules at 12 USC 1715z-20(n) and (o).
What most HECM originators are not familar with are state laws. For example, in California there is there is a law impacting such transactions at CIC 785.1. The application of this law by the legal department at the California Department of Insurance as to how they apply before and after the origination of a HECM in relation to the sale of the LTCI may not yet be settled. At last discussion, the application will have a subjective element,