Medicaid-assisted Coverage From Partnership Long Term Care Insurance

By Author: Georgina Thorne
Total Articles: 14
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Private long term care insurance policy provides financial assistance to individuals who might need nursing home care, assisted living, hospice care, or other LTC services. There are times, though, that a single coverage is not enough for one’s health care needs and thus the birth of the Long Term Care Insurance Partnership Program.

The said program is a joint effort between long term care insurance (LTCI) companies and government agencies which aim to encourage everybody in America to plan his future health care requirements to avoid being subjected to soaring long term care (LTC) costs.

Buying a Partnership qualified policy is not so different from getting a lifetime LTCI coverage because the moment that you have used up the benefits of your insurance plan you can instantly apply for Medicaid coverage to receive ongoing care. In addition, the process of your Medicaid application will be totally different from the usual because you will not be required to comply with the said program’s spend down rule.

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... Partnership qualified LTCI policies carry a special feature called the Medicaid Asset Protection that allows policyholders to protect a substantial amount of their assets when they apply for Medicaid coverage. The amount of assets which they can exempt from Medicaid’s spend down rule should be equivalent to the total amount of insurance benefits that they have received from their Partnership LTCI policies.

Simply put, if your Partnership LTCI policy has paid you a total of $120,000 in benefits you can protect a portion of your assets that has an equivalent amount plus the $2,000 asset limit which Medicaid allows so the total amount of your assets that shall be disregarded from Medicaid’s spend down rule is $122,000.

Who Should Buy Long Term Care Insurance Partnership Policies?

It is not true that Partnership LTCI plans are more expensive than other types of policies. In fact, the government forbids all insurance companies marketing policies under the Partnership Program to use the asset disregard feature as reason for increasing premium rates.

Those individuals who cannot afford the price of a standard LTCI policy which stipulates a substantial amount of benefits and a long benefit period will find Partnership qualified LTCI policies very helpful as these come with Medicaid-assisted coverage.

Anyone who buys a Partnership LTCI policy can opt for a modest amount of insurance benefits and not worry at all what happens to him in case he runs short of coverage because he can apply for Medicaid right away. It has to be understood, though, that owning a Partnership policy does not mean one shall instantly receive Medicaid-assisted coverage after he has exhausted his LTCI benefits because the program will still have to check his financial status upon receipt of his application for coverage.

All policies that are sold under the long term care insurance Partnership Program should be tax-qualified and should provide inflation protection. If you are not so sure about which type of LTCI policy to purchase, it is best to contact an insurance agent who is authorized to market such product in your state of residence.

Visit us today to find out long term care insurance costs in your area and in order to get free long term care quote.