12-R382

2012 -- H 7822

Enacted 06/12/12

H O U S E R E S O L U T I O N

RESPECTFULLY URGING THE STATE SECRETARY OF THE OFFICE OF HEALTH AND HUMAN SERVICES TO UNDERTAKE ALL ACTIONS NECESSARY TO DOUBLE THE LEVELS OF ASSETS WHICH SHALL BE FREE FROM RECOVERY FROM THE STATE IF AN INDIVIDUAL PURCHASES THE LONG-TERM CARE INSURANCE PRESENTLY OFFERED BY THE STATE

Introduced By: Representatives Morgan, Reilly, Newberry, Ehrhardt, and Costa

Date Introduced: February 28, 2012

     WHEREAS, The Deficit Reduction Act of 2005 (DRA 05) allowed all states to create

Long-Term Care Insurance Partnership Plans, and there are approximately forty (40) states that

offer long-term care partnership policies; and

     WHEREAS, The Long-Term Care (LTC) Partnership Program is a public-private

partnership between states and private insurance companies designed to reduce Medicaid

expenditures by delaying, or eliminating the need, for some people to rely on Medicaid to pay for

LTC services; and

     WHEREAS, Individuals needing LTC services who previously purchased select private

LTC insurance policies that are designated by a state as qualified partnership policies, first rely on

benefits from their private insurance policy to cover LTC costs before they access Medicaid; and

     WHEREAS, After the LTC insurance benefits are exhausted, and to qualify for

Medicaid, applicants must meet certain eligibility requirements, including income and asset

requirements; and

     WHEREAS, Increased purchase of long-term care insurance partnership policies will

benefit both individuals and the state by protecting Rhode Island citizens from having to

impoverish themselves before applying for Medicaid and by reducing state Medicaid costs: and

     WHEREAS, The Long-Term Care Partnership Program helps states to encourage

personal responsibility while saving heavily strained Medicaid program money, since 92 percent

of Long-Term Care claims are for three years or less, which means that most people do not fully

consume their Long-Term Care Insurance benefits; and

     WHEREAS, This program affords individuals the peace of mind that the burden of their

long-term care services will be insured, while the state receives the assurance that a substantial

portion of the elder’s expenses will not be borne by the Medicaid Program; now, therefore be it

     RESOLVED, That this House of Representatives of the State of Rhode Island and

Providence Plantations hereby urges the State Secretary of Health and Human Services to

undertake all actions necessary to double the level of assets which shall be free from recovery

from the state if an individual purchases the long-term care insurance presently offered by the

state, without premium increase as a result of doubling the amount of protected assets; and be it

further

     RESOLVED, That the Secretary of State be and he hereby is authorized and directed to

transmit a duly certified copy of this resolution to the Honorable Steven Costantino, Rhode Island

Secretary of Health and Human Services.

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LC01656

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