Partnership LTCI Lets You Keep More
There still seems to be a gray area in partnership long term care insurance plans and this perhaps is why many people still find its long term care quotes and offerings debatable.
Many wonder what is so notable about a partnership qualified long term care insurance (LTCI) policy when it is basically appended to Medicaid, which the federal health insurance program that is primarily designed for poor families and individuals earning a monthly income that is below the poverty level.
Medicaid, however, eventually became the only salvation of more than half of the American population needing care so it had to undergo significant cutbacks earlier this year to save whatever is left of its funds; and to recover from its huge expenditures on long term care (LTC) before its coffers dry up completely and cause strains on the poor.
Now the partnership LTCI program was basically conceptualized so that a person can delay or perhaps never need Medicaid at all. This is how it goes. An individual applies for an LTCI policy which complies with the rules of the partnership program in his state of residence.
As soon as a benefit trigger occurs, the insured can use his benefits the same way that policyholders of traditional LTCI policies would use their benefits. What sets the partnership LTCI policy apart from standard policies though is the fact that it provides Medicaid Asset Protection, a distinct feature which can benefit the insured in a grand manner.
With the Medicaid Asset Protection, the insured can protect his assets which are equivalent to the benefits which he has received from his policy should he decide to apply for Medicaid assistance after having exhausted his insurance benefits.
Under normal circumstances, a person who wishes to apply for Medicaid should satisfy this program’s asset requirement first. For instance, if the asset limit of the Medicaid program in his state of residence is $1,200 then his total assets should not exceed this amount, otherwise he won’t qualify for Medicaid assistance.
Partnership Long Term Care Insurance
So the fact that owners of partnership LTCI policies are given the privilege to receive extended care from Medicaid is confusing to many people. They ask, why would the government discourage us from going to Medicaid when there seems to be no problem with funds, after all, as they are practically giving it away like candy to policyholders of partnership policies.
What seems to be unclear to them is that area of the partnership program wherein the need for Medicaid is delayed or oftentimes prevented. The partnership program in most states require a minimum benefit period of three years so most buyers of partnership LTCI policies would prefer this short coverage and save themselves a chunk on annual premium because they are aware that should the need for additional care arise, Medicaid is close at hand.
Now statistics show that the average length of stay of an elderly in a nursing home is three years. So simply put, an individual who acquires a partnership long term care insurance plan with a three-year coverage period might never need Medicaid; but in case he does his point of vantage is that the amount of his assets that is equivalent to the total benefits that he has received from his LTCI policy will be automatically exempted from Medicaid’s spend-down rule.
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