STACK: PA LONG TERM CARE PARTNERSHIP PROTECTS CONSUMERS  

HARRISBURG, JULY 19, 2007 – State Sen. Mike Stack hailed a new law that creates the Pennsylvania Long Term Care Partnership (LTCP) as a quality measure that will protect consumers while lowering state long-term care costs.

The legislation (Senate Bill 548), which Gov. Ed Rendell signed into law as Act 40 of 2007, gives Pennsylvanians an opportunity to purchase long-term care (LTC) insurance through the Pennsylvania Long Term Care Partnership (LTCP) Program, which will provide dollar for dollar asset protection to people who purchase LTCP insurance policies and enhance the guaranty fund coverage limits for LTC insurance.

“This new law will ensure that Pennsylvania residents have reliable and adequate coverage to meet their long-term care needs in the future,” Stack said. “It’s a quality protection measure that will positively impact individuals who purchase long-term care insurance, as well as their families.” 

Through this new law, people who purchase a LTCP insurance policy will receive dollar-for-dollar asset protection.

Individuals who buy $300,000 worth of long-term care insurance through a LTCP policy will be able to protect $300,000 worth of their assets and still qualify for Medicaid LTC services after they have exhausted their private sector LTC coverage.

Long-term care is costly to Pennsylvanians.    

Pennsylvania spends approximately $4 billion a year on long-term care services.
The Pennsylvania Department of Public Welfare will spend $762.5 million on Medicaid Long Term Care services, which includes both home and community based care and facility care services, during this new fiscal year alone.

Additionally, one in five Pennsylvania residents is over the age of 60 — the third highest of any state.  

“We need to protect our aging population,” Stack said. “That’s why it’s so important that this law protects their hard earned assets.”

Other states are adopting, or in the process of enacting, laws to create Long Term Care Partnership programs, including New York, Connecticut, Virginia, Indiana, Georgia, Florida, Minnesota, Kansas, Idaho, Nevada and California.

Stack introduced similar legislation earlier this year, and said he is pleased that the legislature and the governor shared his desire to enact this legislation into law.

“We’ve ratified a law that will truly benefit and protect Pennsylvanians,” Stack said

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