Protect Your Assets...Is Your State a Partnership State?

Many states have adopted and elected to participate in a Long Term Care Insurance Partnership Program ("Partnership Program").  The Partnership Program, which is authorized by federal legislation, is unique to long term care insurance and is designed to help provide asset protection for those who own long term care insurance and seek to access Medicaid benefits.

Here's how it works...

(Note:  states may adopt various ways to implement this program, however, the following explains the "dollar for dollar" asset protection coverage.)

If you live in a state that participates in the Partnership Program, specifically the "dollar for dollar" program, you may be able to qualify for Medicaid in your state while retaining more assets than would otherwise be required under your state's Medicaid eligibility requirements.  How?  First, you must buy long term care insurance that has the basic benefits required by the Partnership Program -- which we can cover in more detail.  Once you own this long term care insurance, for every dollar of benefit you receive for covered care under this coverage, you receive a dollar of asset protection.  This is called dollar for dollar asset protection.

For example...Suppose you purchase long term care insurance that "qualifies" for Partnership Program asset protection and under the terms of your coverage you receive $67,000 in benefits.  Generally, you will be able to keep an additional $67,000 in savings or investments, in addition to the assets your state already allows you to keep, and still meet the state's asset test for qualifying for Medicaid.  Without the Partnership Program, your state may require you to spend the $67,000 for long term care services, called "spending down", prior to becoming eligible for Medicaid.  Also, it is important to note that you are not required to use all of the benefits of your long term care insurance prior to receiving your dollar for dollar asset protection.  Every benefit dollar qualifies.

It is important to note that not all insurance companies participate in the Partnership Program and you should contact a licensed and LTC certified agent, as well as your State Department of Insurance to find out the requirements for qualification as well as the specific policies approved in your state for this protection.  Policies must meet specific guidelines pursuant to your state and the Partnership Program requirements.  Specifically, policies are required to have specific levels of inflation protection at certain ages in order to qualify.  Be sure you research this coverage with a qualified and certified agent prior to applying.

Our toll free phone number is 1-888-582-2733 or visit our website at www.LTCIofAmerica.com