Long term care partnership program is a public-private partnership of states and private insurance companies that aim to reduce Medicaid expenses by eliminating or delaying the need for some people to rely on Medicaid for their long term care services.
Long term care partnership programs also encourage people to plan for their long term care needs even at an early stage. In that way, people will be less likely to depend on Medicaid in terms of their long term care needs and would still be able to protect their assets as they receive their long term care services.
The point of having long term care partnership program is that when you are done with your long term care insurance policy and you still need the service, Medicaid would provide for you without having your assets stripped down to about $2, 000 which is the standard amount of how much you could keep in your assets for Medicaid to pay for your long term care services.
So for example you applied for long term care partnership policy with a value of about $200, 000, when you have used up your long term care insurance benefits and you would still need to receive long term care insurance, you could use your long term care partnership policy. Medicaid could pay for your additional expenses regarding long term care without depleting your resources to $2, 000. You would be allowed to have $200, 000 in your properties and assets. Once you have spent amounts of your assets over $200, 000, Medicaid could now provide and pay for your long term care needs.
In this way, you are able to protect what you own and still receive extensive duration of long term care. You are also able to save up instead of spending more for extending the service that you receive. Also, Medicaid gets benefit from this as well for people would have to take responsibility of their long term care needs and not depend on them for the entire duration of their needs.
Considerations before Having Long Term care Partnership Program
One thing that you have to know before getting long term care insurance is that not all of them are partnership-qualified. You should talk to your agent or insurer to know if your policy could qualify for a partnership program. But some of the requirements of partnership qualified policies are: it must be tax-qualified, the policy must offer inflation protection based in specific age brackets of purchase, and the policy must meet requirements of 2000 NAIC Long Term Care Model Act and Regulation.
Another is that policies issued before the partnership’s effective date which is February 8, 2006, are not qualified. However, it is possible to exchange your policy and get a partnership-qualified one.
Take note that eligibility for Medicaid is not automatic and there are qualifications and conditions that you should pass first before you could get the additional services. Medicaid services also vary in each state.
Partnership programs may also differ in every state and you should check their terms first before you get one.
These processes of partnership programs explain how these could help you get long term care and prolong your duration of receiving services.