Find the current average cost of Long-Term Care in your state (or a state you may move to in the future). Discover if your state participates in the Long-Term Care Partnership Program, available tax incentives and, the Medicaid spend-down requirements.
With the passage of the 2005 Deficit Reduction Act, the Long-Term Care Partnership Program has emerged as a way to help both the states and consumers address the high costs of long-term health care. This federal/state/consumer partnership allows a consumer who has a qualified Long-Term Care Partnership Policy to protect their assets that would normally be spent-down and still qualify for state Medicaid Long-Term Care benefits without the full exhaustion of assets. Learn More
A Long-Term Care Partnership policy provides dollar-for-dollar asset protection. This allows you to shelter your assets in the event you exhaust all the benefits of your qualified Long-Term Care policy. This is referred to as “asset disregard”. The state will disregard the total amount of benefits paid by your Partnership policy in the calculation for Medicaid Long-Term Care benefits. This way no matter what happens or how long your extended care event lasts, you will never fully exhaust your assets.
Let's say Sally Smith from Ohio, has $310,000 in countable assets. She had purchased a Long-Term Care Partnership policy at age 52. When she is 79 need qualifies for benefits, but she exhausts all her benefits after the policy paid $295,000. If her policy had not been a Long-Term Care Partnership policy she would self-fund her care. Medicaid would not consider paying until she exhausted to $1500 in assets. However, since she does have a Long-Term Care Partnership policy, the state will disregard the total amount paid by per policy in the calculation for Medicaid. In this example, it is $295,000.
Since Sally's policy a partnership policy, she can qualify for Medicaid once she spends the difference between what the policy paid ($295,000) and her assets ($310,000). Her total spend-down is only $24,800. She has sheltered $295,000 legally and still qualified for Medicaid Long-Term Care Benefits.
Remember, Sally selected the total benefit value of her policy when she purchased it. Long-Term Care Partnership policies require certain benefit levels and inflation options depending on the state of residence at the time of purchase.
Each state has its own spend-down requirements. Find your state Here.
Policies must be purchased from an insurance company which has filed their product as an Long-Term Care Partnership qualified policy. It must still have the required inflation options to be eligible for the Long-Term Care Partnership Program. In many states, any qualifying policies that meet federal guidelines, that are or were issued after January 2006, may become part of the partnership program. You should ask your insurance representative or call the insurance company for information if you own an older non Long-Term Care Partnership policy.
All Long-Term Care Insurance policies are good anywhere in the United States and US territories. Some plans have some international benefits as well. However, for a Long-Term Care Partnership policy, most states have reciprocity, which honors another states partnership benefits. If the state does not support the partnership program, the additional dollar for dollar asset protection will not be honored. Use the map below to see a map of states and their reciprocity.