<PAGE>
Prospectus Supplement No. 4 Rule 424(b)(3) Prospectus
to Prospectus dated April 11, 1997 Registration Number 333-22125
Penn Treaty American Corporation
$74,750,000 6 1/4% Convertible Subordinated Notes Due 2003
2,628,340 shares of Common Stock
This Prospectus Supplement supplements information contained in that
certain Prospectus of the Company dated April 11, 1997, as supplemented by
Prospectus Supplement No. 1 dated May 6, 1997, Prospectus Supplement No. 2
dated June 11, 1997 and Prospectus Supplement No. 3 dated July 21, 1997
(collectively, the "Prospectus") relating to the potential sale from time to
time of up to $74,750,000 aggregate principal amount of Notes and the Common
Stock issuable upon conversion thereof by the Selling Securityholders. This
Prospectus Supplement is not complete without, and may not be delivered or
utilized except in connection with, the Prospectus, including any amendments
or supplements thereto. Capitalized terms used herein but not defined have
the meanings assigned to such terms in the Prospectus.
The following table supplements the information set forth in the
Prospectus under the caption "Selling Securityholders" with respect to the
Selling Securityholders and the respective principal amounts of Notes
beneficially owned by such Selling Securityholders and that may be sold
pursuant to the Prospectus, as amended or supplemented:
Principal
Amount
of Notes Number of
Beneficially Conversion
Owned and Percent of Shares
That May Outstanding That May
Name(1) Be Sold Notes Be Sold(2)
------ ------------ ----------- -----------
McMahan Securities Co. L.P.(8)... $605,000 * 21,272
- ------------------
* Less than 1%
(1) The information set forth herein is as of August 13,
1997 and will be updated as required. Certain of the
holders share investment power with their respective
investment advisors.
(2) Assumes conversion of the full amount of Notes held by
such holder at the initial rate of $28.44 in principal
amount of Notes per share of Common Stock.
(8) The amount listed includes an additional $250,000
principal amount of Notes beneficially owned by McMahan
Securities Co. L.P. which were purchased on August 8,
1997.
The date of this Prospectus Supplement is August 15, 1997
