O'PAKE HAILS ENACTMENT OF LONG-TERM CARE INSURANCE INCENTIVE

          Harrisburg, July 18, 2007 -- Signed into law (Act 40/2007) by the Governor was legislation (SB 548) championed by Senator Michael A. O'Pake (D-Berks) for years that would provide consumers with a financial incentive to purchase long-term care insurance and, at the same time, save taxpayer costs.
          "This is long overdue, but I'm glad it finally crossed the finish line.  With exploding medical assistance and taxpayer costs to care for elderly citizens who need nursing home and other services, we need to encourage Pennsylvanians to protect themselves and their personal belongings through the purchase of long-term care insurance," O'Pake said.
          The legislation facilitates a plan whereby consumers will be able to protect their assets on a dollar-for-dollar basis through the purchase of long-term care insurance.  In other words, the purchase of $100,000 in long-term care coverage would allow them to keep $100,000 in assets and receive medical assistance for long-term care services if and when their insurance coverage runs out, O'Pake explained.
          "Considering that it costs $55,000 or more annually for an individual's care in a nursing home and that medical assistance now pays for the majority of that care in Pennsylvania at a yearly cost of $3 billion, this legislation incentivizes the purchase of long-term care insurance and will help bring taxpayer expenditures in this area under control," O'Pake said.
          Under the legislation, the state Department of Public Welfare is required within a month to file with the federal government an amendment to its state Medicaid plan that would allow consumers to safeguard their personal assets if they purchase long-term care insurance.  Currently, persons without long-term care insurance are required to spend down their assets before qualifying for medical assistance.
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