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FOR IMMEDIATE RELEASE |
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State
Rep. Dom Costa |
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House passes Costa's long-term insurance bill
HARRISBURG, March 9 – The state House today unanimously passed Rep. Dom Costa's bill that would assure senior citizens of an avenue to appeal long-term insurance claims denied by an insurance company.
"This bill would make sure that when you buy long-term health care, the policy you purchase is going to take care of you in your old age by enhancing the appeals process for senior citizens whose claims are denied by their long-term insurance provider," said Costa, D-Allegheny.
Under Costa's legislation, H.B. 1251, if an insurance company denies a long-term care claim filed by a senior citizen, the individual would be guaranteed the right to appeal the decision to a third party. In addition, should the third party deny the claim, the senior would still be able to make an appeal to the state Insurance or Health departments.
At a hearing on the bill Costa hosted in November, the Pennsylvania Insurance Department noted that in 2006, the average cost of a year of nursing facility care in a private room was about $82,490 in Pennsylvania (nationally, the average cost was $75,000). And PHCA/CALM, a statewide advocacy organization for the state's elderly and disabled residents and their care providers, testified that only 35 percent of people 65 or older think they will need long-term care in the future, yet 70 percent of those turning 65 this year will eventually require some form of long-term care.
"Medicare is the primary payer for health-care services for people age 65 and older, but the coverage is very limited and costly to taxpayers," Costa said. "Encouraging individuals to purchase private long-term care insurance would not only ensure better quality of care, but would help to reduce the financial strain on our Medicare system. I believe by strengthening the appeals process, we would make families more comfortable in purchasing these policies."
Costa said he appreciated the bipartisan support his bill received in the House and encouraged the state Senate to take swift action on the legislation that he said would provide important consumer protections for Pennsylvania's elderly and aging population, making them more comfortable purchasing long-term insurance.
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