Partnership Programs

How Can It Help Protect My Assets?

How did Partnership Plans get started? The concept of Long Term Care insurance was started some 40 – 45 years ago.  The insurance industry recognized the need for this type of protection and the plans have evolved dramatically over this period of time.  One of the largest expenses for a state is the Medicaid Program.   One of the largest expenses in the Medicaid Program is providing funding for medically needed services for low income individuals provided in Medicaid approved facilities. 

As the industry, and the awareness of long term care grew, Federal legislation was passed in 2006, as part of the Deficit Reduction Act, that allowed all states to develop Partnership Programs.  Currently, there are about 45 states that have Partnership Programs with reciprocal agreements.  Indiana is one of the initial four states grandfathered – meaning they can continue to operate as they have been, without making any changes.

The Indiana Long Term Care Insurance Partnership Program, the asset disregard for Medicaid may be achieved either on a total basis or dollar-for-dollar basis. Each year the maximum initial purchase will increase by 5% – part of the policy benefits.

The Kentucky Long-Term Care Partnership Program is structure on a dollar-for-dollar basis.  To qualify for a the Partnership Plan, each year the maximum initial purchase can increase by 3% or more – part of the policy benefits. 

  • In both Indiana and Kentucky, plans are available as a Partnership Plan or as a plan that does not quality as a Partnership Plan.  Why would a person want a plan that does not qualify as a Partnership Plan?  The required compound interest rate increases the premium, and benefits for the coverage. Some see the importance of the coverage and simply cannot afford the additional cost for the compound interest rate benefit.

The benefit features under a Partnership Plan are similar to non- partnership plans.  Companies must offer a comprehensive policy. A comprehensive policy includes coverage for both facility care and home and community-based care. Home and community care services shall include, at a minimum: home health nursing; home health aide services; attendant care; respite care; adult day care.  The daily benefit for home and community-based services must be at least 50% of the daily nursing facility benefit contained in the policy.

The above are the basic benefit and features. I realize that this may be confusing, please let me know if you would like additional information.  I am willing to meet and share with you additional information – no obligation! 

Understanding Long Term Care Insurance can be confusing – but not as confusing as you or a loved one trying to find ways to care for someone in need of assistance with a health issue that would be covered by Long Term Care Insurance. 

Please take a few minutes to review the “Caregivers and “LTC tidbits”.

If you are interested in additional information please email or call me and we can discuss!