What is the LTC Partnership Program
The LTCI Partnership Program was started in 2006 as part of the Deficit Reduction Act (DRA). It is a federally-supported and state-operated initiative to reward those who plan ahead by buying individual LTCI. It was created to offer Medicaid Asset Protection to individuals who buy LTCI.
For more on Medicaid:
- Should you rely on Medicaid to pay LTC expenses?
- What you need to know about LTC and Medicaid
- Does Medicaid cover LTC?
How does LTC Partnership Work
Partnership policies provide what is known as dollar-for-dollar protection. For every dollar of insurance coverage you buy, that’s how much of your assets are disregarded when calculating your Medicaid spend-down amount.
For example, if you bought an LTCI Partnership policy with a $250,000 benefit pool and later exhausted your policy at the same amount, $250,000 of your assets are protected from Medicaid spend down rules.
If you’ve ever had to experience someone spending down their assets so that they can be on Medicaid, then you know how important a Partnership policy can be. When consumers buy a Partnership-qualified LTCI policy, they receive even more asset protection.
What makes an LTC Policy Partnership-Qualified
First, the Partnership program must be approved in your state. The four original Partnership states (California, Connecticut, Indiana, and New York) have unique Partnership rules including specific agent licensing and training to sell Partnership policies. These four states also require a unique application for consumers to apply for Partnership policies.
For a policy to be Partnership qualified, you must select the appropriate level of inflation coverage based on your age. The four original states have their own unique inflation rules based on the age you buy your policy. We recommend speaking with an LTCI Specialist about Partnership in your state, including required inflation protection to qualify for Partnership protection.
“To confirm if your state is participating in the Partnership program, speak with an LTCI Specialist licensed in your state.”
Is Partnership Available in Your State
Today 45 states have Partnership policies available. To confirm if your state is participating in the Partnership program, speak with an LTCI Specialist licensed in your state. Our specialists can help you determine eligibility, amount of coverage, and all other aspects of coverage. LTC planning is all they do, and the peace of mind they can provide for your retirement planning is priceless. Protect your assets and your family from a LTC event, get a quote today.