Senate OKs bill to create long-term care program

The R.I. Senate has approved a bill to establish a new “Long-Term Care Insurance Partnership” in the state, aiming to offer more peace of mind and more consumer protections to people who might need substantial health care services for a long time.
Under current laws, Rhode Islanders whose income is higher than the Medicaid cutoff must first spend their own money to pay for long-term care, even if it means using up assets such as their homes, before they can qualify for Medicaid coverage.
The new measure, sponsored by Sen. William A. Walaska, D-Warwick, would instead create an insurance program similar to ones in California, Connecticut, Indiana and New York, following a model recommended by the National Association of Insurance Commissioners.
Under that program, a person who buys a long-term care insurance policy could get credit for every dollar of private benefits received as if they were personal assets spent on long-term care. Once the benefits are exhausted, the person would become eligible for Medicaid.
“Establishing this program means you can qualify for Medicaid without having to spend yourself into poverty,” Walaska said in a news release.
The bill has been referred to the House of Representatives for consideration.