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Legislation Regarding Long-Term Care Insurance

October 26, 2005

Two bills pending in Washington, DC (HR 3511 and S 1569) allow for the creation of state LTC Partnerships to promote private LTC insurance and to provide asset protection. Passage of these bills would allow each state to become a Partnership state. In the Partnership program, a consumer purchases a LTC insurance policy, and, if the benefits are exhausted, Medicaid becomes the payor for the LTC expenses. Rather than having to spend down assets to become Medicaid eligible, the person is allowed to keep personal assets equal to the benefits paid by the LTC insurance polciy! That's a great idea! More people will purchase LTCi, their assets will be protected, and the states won't go broke paying for all of the care. (Gov Mark Warner of VA recently stated: "Unless we get our arms around Medicaid, it will bankrupt every state by 2020.") Please contact your Congressman and Senators to ask them to support this important legislation.

Bruce Rowan