PRIOR PRINTER'S NO. 27 PRINTER'S NO. 840
SENATE RESOLUTION 8
Session of 2001
No. 8
AS AMENDED, APRIL 2, 2001
A RESOLUTION
1 Memorializing Congress to repeal a statutory impediment to state
2 long-term care partnerships.
3 WHEREAS, Costs borne by the taxpayers of this Commonwealth <--
4 for long-term care under Medicaid exceed more than $500 million
5 for a fiscal year; and
6 WHEREAS, Skyrocketing costs of providing care to persons who
7 need assistance to meet daily needs have hit the middle class
8 especially hard. The national average cost for nursing home care
9 is $38,000 per year and is significantly higher in metropolitan
10 areas, such as Philadelphia, where the annual cost is
11 approximately $50,000; and
12 WHEREAS, Costs to the Commonwealth will increase on account
13 of increased demands for services as our population ages and the
14 post-World War II generation approaches retirement age; and
15 WHEREAS, A Pennsylvania solution, allowing middle-class
16 Pennsylvanians to exempt Medicaid eligibility assets used to
17 purchase private sector long-term care insurance that would
18 reduce the eventual costs borne by taxpayers for their care is
19 stymied by section 1902(r)(2) of the Social Security Act (49
20 Stat. 620, 42 U.S.C. § 1396a(r)(2)), which prohibits shielding
1 of assets expended to purchase long-term care insurance;
2 therefore be it
3 RESOLVED, That the Senate of Pennsylvania memorialize the
4 Congress of the United States to enact legislation repealing
5 section 1902(r)(2) of the Social Security Act (49 Stat. 620, 42
6 U.S.C. § 1396a(r)(2)); and be it further
7 RESOLVED, That copies of this resolution be transmitted to
8 the presiding officers of each house of Congress and to each
9 member of Congress from Pennsylvania.
10 WHEREAS, COSTS BORNE BY THE TAXPAYERS OF THIS COMMONWEALTH <--
11 FOR LONG-TERM CARE UNDER MEDICAID EXCEED MORE THAN $500 MILLION
12 FOR A FISCAL YEAR; AND
13 WHEREAS, SKYROCKETING COSTS OF PROVIDING CARE TO PERSONS WHO
14 NEED ASSISTANCE TO MEET DAILY NEEDS HAVE HIT THE MIDDLE CLASS
15 ESPECIALLY HARD. THE NATIONAL AVERAGE COST FOR NURSING HOME CARE
16 IS $38,000 PER YEAR AND IS SIGNIFICANTLY HIGHER IN METROPOLITAN
17 AREAS, SUCH AS PHILADELPHIA WHERE THE ANNUAL COST IS
18 APPROXIMATELY $50,000; AND
19 WHEREAS, COSTS TO THE COMMONWEALTH WILL INCREASE ON ACCOUNT
20 OF INCREASED DEMANDS FOR SERVICES AS OUR POPULATION AGES; AND
21 WHEREAS, THE CONCEPT OF LONG-TERM CARE PARTNERSHIPS PROMOTES
22 PERSONAL RESPONSIBILITY AND ENCOURAGES THE PURCHASE OF PRIVATE
23 LONG-TERM CARE INSURANCE AS THE PRIMARY SOURCE OF FUNDS FOR
24 LONG-TERM CARE SERVICES; AND
25 WHEREAS, A PARTNERSHIP PROGRAM ALLOWS PARTICIPANTS TO SHELTER
26 ASSETS FROM MEDICAID "SPEND DOWN" EQUAL TO THE BENEFITS PAID BY
27 A LONG-TERM CARE INSURANCE POLICY UNDER THE PROGRAM OR PROTECT
28 ALL ASSETS WHEN PARTICIPANTS PURCHASE A MORE SIGNIFICANT POLICY;
29 AND
30 WHEREAS, THE CONCEPT OF LONG-TERM CARE PARTNERSHIPS RESULTS
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1 IN PRIVATE INSURANCE PAYING FIRST AND GOVERNMENT PAYING LAST;
2 AND
3 WHEREAS, THE EXPERIENCE OF THE FOUR STATES THAT HAVE HAD
4 PARTNERSHIP PLANS FOR ALMOST A DECADE HAS RESULTED IN
5 SIGNIFICANT SAVINGS TO TAXPAYERS AS DEMONSTRATED BY RECENT
6 PROGRAM REPORTS LISTED BELOW:
7 STATE POLICIES NUMBER OF PARTICIPANTS
8 IN FORCE ON MEDICAID
9 NEW YORK 26,774 15
10 CONNECTICUT 15,349 6
11 INDIANA 6,998 2
12 CALIFORNIA 17,762 1;
13 AND
14 WHEREAS, AMERICAN CITIZENS IN 46 STATES, THE DISTRICT OF
15 COLUMBIA AND TERRITORIES OF THE UNITED STATES ARE BEING
16 DISCRIMINATED AGAINST BY NOT BEING ABLE TO ENJOY THE BENEFITS
17 PROVIDED BY LONG-TERM CARE PARTNERSHIP PLANS DUE TO A
18 RESTRICTION PLACED ON FEDERAL LAW IN 1993 WHICH HAS PREVENTED
19 ADDITIONAL STATES FROM ENACTING LONG-TERM CARE PARTNERSHIP
20 PROGRAMS; THEREFORE BE IT
21 RESOLVED, THAT THE SENATE OF PENNSYLVANIA MEMORIALIZE THE
22 CONGRESS OF THE UNITED STATES TO ENACT H.R.1041 (107TH CONGRESS,
23 1ST. SESSION) THAT AMENDS SECTION 1917(B)(1)(C) OF THE SOCIAL
24 SECURITY ACT (49 STAT. 620, 42 U.S.C. 1396P(B)(1)(C)) BY
25 DELETING THE DATE OF MAY 14, 1993, FOR STATES TO HAVE LONG-TERM
26 CARE PARTNERSHIP PLANS APPROVED, AFFORDING STATES THROUGHOUT THE
27 NATION THE ABILITY TO GIVE THEIR CITIZENS THE SAME RIGHTS TO
28 PARTICIPATE IN THESE TYPES OF PROGRAMS; AND BE IT FURTHER
29 RESOLVED, THAT COPIES OF THIS RESOLUTION BE TRANSMITTED TO
30 THE PRESIDING OFFICERS OF EACH HOUSE OF CONGRESS AND TO EACH
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1 MEMBER OF CONGRESS FROM PENNSYLVANIA.
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