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 20010S0008R0840 - 2 -
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 20010S0008R0840 - 3 -
1 MEMBER OF CONGRESS FROM PENNSYLVANIA. L14L82JS/20010S0008R0840 - 4 -