Bill Proposes LTC Partnerships With All States

Legislation has been introduced into the Senate to amend Title XIX of the Social Security Act to permit additional states to enter long-term care partnerships under the Medicaid program. Currently, only four states have such programs: California, Connecticut, Indiana, and New York.

The legislation (S. 2077) has been introduced by Sen. Larry Craig, R-ID, and is being supported by Sen. Evan Bayh, D-IN, and Sen. George Allen, R-VA. Under the bipartisan bill, an individual would purchase a long-term care (LTC) insurance policy approved by a state government and, in return, the state would guarantee that should the policy benefits be exhausted, the government would cover the costs of continuing care through Medicaid without requiring the senior to spend down their assets.

"Experts estimate that four out of ten people who reach the age of 65 will need long-term care at some point, and many people mistakenly believe that the federal Medicare program will cover the cost of long-term care," Sen. Craig said. "But the reality is that Medicare only covers nursing home costs for a short period following a hospital stay."

Sen. Craig, who serves as chairman of the Senate's Special Committee on Aging, noted that "long-term care can draw down a senior's bank account in a very short time. This legislation will give seniors peace of mind."