PHL_A 1087416 v 3
Prospectus Supplement No. 10                       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,  Prospectus  Supplement  No. 3 dated July 21,  1997,  Prospectus
Supplement  No. 4 dated  August  15,  1997,  Prospectus  Supplement  No. 5 dated
November  10,  1997,  Prospectus  No.  6 dated  November  21,  1997,  Prospectus
Supplement No. 7 dated March 10, 1998,  Prospectus  Supplement No. 8 dated April
29, 1998 and Prospectus  Supplement No. 9 dated November 13, 1998 (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,  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)
                    --------                          -------------     -----------     -----------
                                                                                

NMS Services, Inc. ..............................     $ 4,300,000        5.75%           151,195


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(1)      The information set forth herein is as of January 29, 1999, 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.



           The date of this Prospectus Supplement is February 9, 1999