W
e have all been told by our financial advisors to look into long-term care insurance to protect our assets. But, like a lot of things we don’t want to think about, it gets put off. Nobody wants to think about getting sick or depending on someone else to take care of them. But, it is a fact of life.
 
One used to think that if the unthinkable happened, the government would be there to step in and help cover the cost of long-term care. We now know better. There is no better evidence of this than the creation of LTCi partnership programs.
 
The partnership program was originally developed over 25 years ago as a way to encourage those who are financially able to purchase private LTC insurance to do so instead of relying on Medicaid. In return, those policyholders who deplete their insurance benefits may then retain a specified amount of assets and still qualify for Medicaid if they meet the other eligibility requirements. Initially, this program was only enacted by a few states.
 
The Deficit Reduction Act of 2005 now allows all states to create partnership programs. While states are free to choose to enact this program or not, there are criteria that each state’s program must contain, including federal tax-qualification, consumer protections, and inflation protection provisions.
 
Compound inflation protection will be required for all purchasers below age 61. For those between the age of 61 and 75, “some level of inflation protection” will be required.
 
There are many other options available to you in customizing your own LTCI partnership policy. If you are interested in more, no obligation, information concerning the partnership program in your state or long-term care insurance in general, please let us hear from you.
 

 

Current Programs
(click underlined states for new booklet)

California
 
Connecticut
 
Florida
 
Georgia
 
Indiana
 
New York

Pending Programs

Many states have
legislation pending to
allow for Partnership
Programs. Please
check back often.