Planning for Your Long Term Care Needs

As the state Insurance Department has authorized the first insurance companies to begin selling policies under Pennsylvania's new Long-Term Care Partnership law (Act 40/2007), a new statewide outreach effort is underway to encourage Pennsylvanians to plan ahead for their future needs.  This is especially important for those of the "baby boom generation" who are soon nearing their "golden years."  

At the bottom of this page, I've provided several links to a myriad of resources that will hopefully help consumers with their individual planning and decision-making.

Sobering Reality: 
-- It's now estimated that 2 out of every 3 nursing home residents in Pennsylvania are on Medicaid;
-- While PA already has the 3rd largest percentage of citizens over the age of 65, behind only Florida and West Virginia, Pennsylvania's older population continues to grow.  By 2020, it's projected that 1 in 4 Pennsylvanians will be over 60.  By 2030, there will be more citizens over 65 than there are school-age children;
-- Medicaid spending (federal and state funds) for the care of Pennsylvania's elderly citizens now totals more than $4.5 billion annually;
-- Nursing home care now costs an average of $60,000 annually;
-- "Medicare" only provides limited coverage for nursing home care;
-- Before "Medicaid" will cover nursing home care, a person must "spend down" most all of their assets.

While Pennsylvania must never shrink from its responsibility of doing all that it must to care for the most vulnerable among us, our state's new Long-Term Care Partnership law -- which I've advocated for years -- is aimed at helping to control exploding taxpayer costs for these services by encouraging Pennsylvanians to consider the purchase of long-term care insurance.  The incentive/benefit for consumers who purchase long-term care insurance is that they now have the ability to protect their personal assets for themselves and their loved ones -- on a dollar for dollar basis up to the amount of their purchased coverage -- if and when their insurance coverage runs out and they must turn to public assistance (Medicaid) to pay the bill for their remaining care. 

It's important to emphasize that the purchase of Long-Term Care Insurance may not be the right choice, or affordable, for everyone.  This is a very personal decision that should be considered very carefully, and in consultation with a trusted advisor or loved one.

                                        Insurance Department "Long-Term Care Insurance" Link

                                 Long-Term Care Partnership Insurance "FAQ" Guide (PDF file)

                                                     Aging Department Long-Term Care Link

For more information, you may also wish to contact the state's Long-Term Care Helpline at 1-866-386-3636. 

A free Long-Term Care Planning Kit is also available from the federal government by calling toll-free at 1-866-752-6582.

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