Representing Bronx and Westchester Counties
FOR IMMEDIATE RELEASE:
December 16, 2010Contact:
Office: (718) 822-2049Cell: (516) 204-4547
NEW LAW GIVES NYS SENIORS ABILITY TOPAY FOR NURSING HOME CARE WITH LIFEINSURANCE MONEY
Klein Says Could Potentially Save State millions in Medicaid Monies
NEW YORK, NY - State Senator Jeff Klein (D-Bronx/ Westchester) announced on December 14th, that his bill giving individuals an opportunity to use a portion of their life insurance policyto cover nursing home and other long-term care costs was signed into law by NYS Governor David Paterson.The new law allows people to divert their accelerated death benefits to pay for their long termcare by changing the insurance law to expand the definition of the term "life insurance." Under the law, life insurance policies can be used to cover seniors who have lived in nursing homes for at least three months. As baby boomers age, more than two million New Yorkers will needservices ranging from home health care to nursing home care by 2015. This new law givesindividuals more options to better plan for their own future long term care needs while allowingthem some measure of asset security."Currently, New York State spends $23.1 billion on long-term care under Medicaid. By passingthis law, we no longer burden taxpayers with the long-term care expenses needed by the growingsenior population and we've given thousands of seniors a creative and cost saving way to cover their care," said Senator Jeff Klein (D-Bronx/Westchester).³The Life Insurance Council of New York, Inc. (LICONY) applauds Senator Klein andAssemblyman Morelle for sponsoring legislation that will provide insurers and policyholderswith another option for utilizing their life insurance death benefit when it is needed and whenthey choose to exercise the option,´ said Diane Stuto, Executive Vice President of LICONY.
News from Deputy Majority Leader Senator Jeff Klein