Long Term Care Partnership Policies allow consumers to keep some of their assets that they would most likely spend down in order to qualify for Medicaid when needing Long Term Care. Most Partnership Programs work on a Dollar-for-Dollar basis, for every dollar that a policy holder would use in their benefits, that is how much of your assets you can keep. Example, if you have a LTC Insurance Partnership Policy and you are using your Long Term Care Insurance benefits and you use $100,000 worth for care and your benefits run out so you need to go on Medicaid, $100,000 of your assets will be exempt from Medicaid spend down.
The Long-Term Care Insurance Partnership Program was developed in the 1980's to help encourage people to purchase long-term care insurance instead of turning to Medicaid. People who purchase Partnership policies deplete their insurance benefits they can then retain a certain amount of assets and still qualify for Medicaid. Until recently there were only 4 states that participated in the Long-Term Care Insurance Partnership Programs these states are: California, Connecticut, Indiana, and New York. The Deficit Reduction Act of 2005 (DRA 2005) now allows all states to participate in the Partnership Program. Partnership policies in these new Partnership states much meet certain criteria's such as federal tax-qualifications, identified consumer protections, and inflation protection. Compound Inflation protection will be required for the people under the age of 61 and some level of inflation protection will be required for people between 61 and 75. Currently there are over 30 states that offer Partnership policy's. When a state has reached its final regulations issued by the specific states Department of Insurance and has been allowed to launch the states Long-Term Care Insurance Partnership Program, that state will be added to this website.
Click here to see a list of the approved Partnership States.
What is the Long-Term Care Partnership Program?
In order to understand long-term care insurance, you will need to understand what long-term care is. Long-term care is the full range of services and support required for day-to-day living when prolonged illness, disability, cognitive impairment or an accident prevents one from caring for themselves.
Long-term care can be provided in many settings, from your own home, to assisted living facilities and other places such as continuing care retirement communities, adult day health programs, and nursing homes. Many people who buy private long-term care insurance do so because they know that existing government programs pay little or nothing toward in-home long-term care. With the national average cost of a home health aide at $19/hour, long-term care costs can add up quickly, and force painful decisions in families that have not done planning.
While you work so hard to prepare for the future, the costs of long-term care can quickly add up. As your age increases so does the likelihood that you will need long-term care. Long-term care services are generally not covered by your regular health insurance, Medicare or Medicare supplemental insurance.
Partnership policies offer people a smart way to plan for future care costs, while also protecting their hard-earned assets. Today, Medicaid is the largest payor of professional long-term care. In order to qualify, Medicaid requires that a married couple exhaust their countable assets to approximately $110,000 ($2,000 for a single person, also may vary by state). Partnership Policies allow insured's to protect or keep some assets above these levels if you have a long claim, and apply for Medicaid after using up your policy’s benefits. Under a Partnership policy the amount of Medicaid spend down protection you receive is equal to the amount of benefits paid to you under your private Partnership
Many states encourages individuals to plan for their long-term care needs by purchasing a private Partnership policy (this is called Asset Disregard). Partnership programs help both individuals and the state. For individuals, it allows them to get and pay for services they need without having to spend all of their assets. For the state, it can decrease the
amount of Medicaid dollars used for long-term care services.
This enables you to protect what you have worked so hard for, freeing your family from extra burdens and allowing you to spend your money how you dreamed you would.
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