Long-term care bill would protect assets

STATE HOUSE – A new Long-Term Care Insurance Partnership approved by the R.I. General Assembly “means you can qualify for Medicaid without having to spend yourself into poverty,” said Sen. William A. Walaska, D-Warwick, the measure’s sponsor.
Under current laws, Rhode Islanders who need long-term care services cannot qualify for Medicaid coverage until they first use up their own assets. That would changed under Walaska’s bill (2007-S 0638A), which previously had cleared the Senate, was approved by the House on Friday. It now awaits the governor’s signature.
The measure – similar to those already adopted by Connecticut, California, Indiana and New York – incorporates many features recommended by the National Association of Insurance Commissioners. It would allow Rhode Islanders who buy private long-term care insurance, and live in the state while receiving care under the plan, to qualify for government-sponsored Medicaid coverage once their benefits under the private policy were exhausted.
“An individual who participates in this new program and purchases a private long-term care policy may have to use part of his or her income to cover some health care costs,” Walaska said, “but that same person will not have to drain the savings account or, possibly, be forced to sell a home to afford the proper care. Each dollar paid by the insurance company is a dollar of personal assets that can be saved.”
The measure was co-sponsored by Senate Majority Leader M. Teresa Paiva Weed, D-Newport and Jamestown and Senators Michael J. McCaffrey, D-Warwick, David E. Bates, R-Barrington and Bristol, and Maryellen Goodwin, D-Providence.
Additional information is available at www.rilin.state.ri.us.