Federal Partnership Program
The State of Oregon participates in the federal/state long-term care partnership program which was authorized by federal law in 2005. The State established a partnership among the Department of Human Services (DHS), the Department of Consumer and Business Services, and some private long-term care insurers to offer special long-term care (LTC) insurance policies that entitle policyholders to asset protection. These policies must meet certain state and federal requirements. A qualified partnership policy (QPP) may be entitled to special asset protection under Oregon’s Medicaid program.
With a qualified Oregon Long-Term Care Partnership policy, you may qualify for Medicaid long-term care benefits and keep more assets than what is normally allowed under the law. Assets include money in the bank, investments, and real property. Generally, people qualify for Medicaid when they have assets of $2,000 or less. A QPP allows you to keep assets equal to the amount of LTC insurance benefits you received. Also, a QPP protects your inheritance for the same amount.
If your QPP paid $350,000 in LTC benefits, you would get to keep the $2,000 Medicaid normally allows and also shelter $350,000 in additional assets and while still becoming eligible for Medicaid. Whatever the policy paid is what will be “disregarded” in the spend-down requirements. This allows for additional asset protection. The Partnership Program also protects those assets after death from Medicaid estate recovery.
Most states have reciprocity with other states' long-term-care partnership programs including Oregon. This means if you move from or to Oregon your partnership asset protection follows you as well.
Long-Term Care Medicaid spend down is $2,000. A spouse’s minimum asset allowance is minimum of $25,728 up to a maximum of one-half of countable assets up to $128,640. Your spouse’s minimum monthly income allowance is $2,113.75. * The home equity limit is $595,000.
For more information about the Medicaid program visit www.medicaid.gov.
Rate Stability Rules
In addition, Oregon consumers enjoy additional peace-of-mind as the state has adopted Long-Term Care Insurance Rate Stability Rules. These rules, developed the National Association of Insurance Commissioners, makes it much harder for an insurance company to get an approved rate increase.
Products Approved in Oregon
Several products are approved in Oregon for Long-Term Care planning. These include traditional plans, including partnership certified policies, limited-duration plans, and asset-based “hybrid” policies.
Oregon no longer offers a state tax incentive for qualified Long-Term Care insurance; however, federal tax incentives are still available.
*The federal government sets a new minimum and maximum amounts each year, but states can set their own minimum requirements at any level between the federal limits. This information is based on the best available sources.