Quality Care and Asset Protection from Partnership Plans

Written by admin on February 16th, 2012


It is absolutely not true that you have to be literally impoverished to qualify for Medicaid.  Technically, that may be the case but strategically speaking all you need to qualify for the said federal funded health insurance program is a long term care insurance partnership plan.  


Since the Partnership Program was created Americans have been looking into more options for their long term care (LTC) plan.  There is no reason for them to reach the age of 80 and say they don’t have a definite plan because they were left with no other choice but to buy a long term care insurance (LTCI) policy which happens to be so expensive. 


It’s true that standard LTCI policies are very pricey that is why state governments have partnered with private insurance companies to provide the public with a more affordable LTCI plan called the Partnership LTCI. 


Partnership qualified LTCI policies feature Medicaid Asset Protection.  This means that the owner of this type of policy can apply for Medicaid assistance without depleting his assets should he need ongoing care after having exhausted his benefits.


Through the Medicaid Asset Protection, a person with a Partnership qualified LTCI policy can protect the amount of his assets that is equivalent to the total dollar amount of benefits which he receives from his policy. 


For example, you have a policy which conforms to the guidelines of the Partnership Program.  It stipulates your maximum benefit amount is $ 300,000 for a maximum benefit period of three years.  Upon reaching the third and last year of your coverage, your physician recommended continuous therapy in a nursing home.  To be able to avail that, you can apply for Medicaid assistance without spending down your assets worth $ 300,000 since that is the total amount of benefits which you received from your policy. 


Long Term Care Insurance Partnership Policies


For your LTCI policy to be considered conforming to the guidelines of the Partnership Program, it should be tax qualified.  All states that are participating in the Partnership Program require insurance companies marketing Partnership LTCI policies to provide 5% annual compound inflation protection or some level of protection that is based on the buyer’s age.


Most of these states participating in the Partnership Program also require a minimum daily benefit amount and a minimum benefit period which is normally three years.


If you’re wondering why most states require a minimum benefit period of three years, that’s because this is the average length of time that an individual would require care or stay in a nursing home.  If you get to speak with professional nurses or nursing home staff, they will tell you that most of their senior residents stay in their facility for three years, on average, while those with Alzheimer’s stay much longer. 


Buyers of Partnership LTCI plans should also be residents of the state wherein they purchased their policies at the time the Partnership Program took effect here. 


You’ll definitely find long term care insurance partnership plans worth studying as these offer more than just access to topnotch LTC. 

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