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FOR IMMEDIATE RELEASE |
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State
Rep. Dom Costa |
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Costa's long-term care insurance bill signed into law
Will help ensure people get the benefits they paid for
HARRISBURG, July 9 – Pennsylvania Gov. Ed Rendell today signed state Rep. Dom Costa's bill that would give consumers recourse if their long-term care insurance benefits are denied.
"This is a great day for Pennsylvanians," said Costa, D-Allegheny. "This new consumer protection law will ensure people receive the long-term care insurance benefits they buy."
Under the new law, if an insurance company denies a long-term care claim, the consumer would have the right to appeal the decision to an independent review organization. Should the claim still be denied, the consumer would be able to go to court.
"Long-term care can wipe out a person's lifetime savings in a single year, and yet most Pennsylvanians do not purchase long-term insurance," said Costa. "While the number one reason for not purchasing the coverage is cost, the number two reason people give for not having long-term coverage is they don't trust that they'll receive the benefits they paid for. Hopefully, this new law will remove some of that fear."
According to the Pennsylvania Department of Aging:
Ø About one-third of the state's older population will need long-term care services for at least two years, yet only about 7 percent of Pennsylvanians have long-term care insurance coverage;
Ø Only 35 percent of the nation's senior citizens think they will need long-term care in the future, yet 70 percent of Americans turning 65 this year will eventually require some form of long-term care;
Ø Less than 25 percent of Pennsylvania's baby boomers have given serious thought to how they would finance long-term care services;
Ø Only 27 percent of seniors have sufficient resources to cover 2 1/2 years of nursing facility care;
Ø In 2006, the average annual cost of nursing home care in a private room was $82,490; the average annual cost for 10 hours per week of in-home health care was $10,000.
The bill was amended to include an extension of mini-COBRA coverage from 9 to 15 months for eligible Pennsylvanians, thereby extending access to health care for people who are between jobs. Employees of small business who lose their jobs will have full access to federal assistance to help pay for the employee and their family's health insurance.
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