Pennsylvania Long Term Care Partnership

  In July 2007, Governor Ed Rendell signed into law Act 40 which established the Pennsylvania Long Term Care Partnership Program. The Partnership is a joint effort by State Government and Private Industry to create a program that enables Pennsylvanians to meet their future long term care needs without impoverishing themselves to pay for care. More than 200,000 senior Pennsylvanians are enrolled in the State's medical assistance program known as Medicaid. However, Medicaid will pay for your Long Term Care needs only when your assets and resources (excluding your home and car) are less than $2,400. If you do not have private insurance, you will then have to pay for your expenses out-of-pocket and spend-down to Medicaid’s asset limit in order to qualify.

The Pennsylvania Long Term Care Partnership is a partnership program between private insurance companies and the State, through Pennsylvania Insurance Department. The program aims to address the increasing demands of long term care while relieving the growing financial burden on Medicaid. Studies reveal that total Medicaid spending for fiscal year 2007 has amounted to almost $16 billion, where 40.2% of the total spending was devoted to long term care, mainly for nursing home care expenses (almost $4 billion).  Click to Download FREE E-Book   (Details Below)

Pennsylvania Long Term Care Partnership Policies

Policies that meet the requirements of the Partnership program are called Partnership policies and provide a unique feature called dollar-for-dollar asset protection. This provides the policyholder an asset protection equal to the insurance benefits paid by the policy. Therefore, if the policyholder received $200,000 of insurance benefits and still need long term care, he is entitled to keep $200,000 in assets beyond the limit of Medicaid. This means that residents of Pennsylvania may continue to receive care through the Medicaid program without being required to spend down their assets, after depleting the benefits of qualified private insurance policies.

1. It's Approved by the State - Partnership policies are sold by the Major insurance carriers but approved by the state of Pennsylvania if they meet certain consumer protection standards.

2. The Risk of Needing Care Is High - According to the Federal Government, "at least 70 percent or people over age 65 will require some Long Term care services at some point in their lives". And contrary to what many people believe Medicare and private health insurance programs do not pay for the majority of Long Term Care services.

3. The Cost of Care is Expensive - According to AARP, the average cost of care for a private nursing home room in Pennsylvania is over $85,0000 a year. Home Care can be just as expensive as well, depending on the services required.

4. It Provides Medicaid Asset Protection - Partnership policies allow you to protect assets equal to what your policy has paid in benefits. Only State Approved Partnership Policies provide Medicaid Asset Protection.

Click Here to download a FREE e-book about the Pennsylvania Long Term Care Partnership Program.