Affordable Long Term Care Coverage from the Partnership Program
One of the reasons uninsured folks continue to steer away from long term care insurance is that they fear the possibility of being forced to pay a very high premium. Maybe there is a need for them to go over the offerings of long term care insurance companies again, as they have probably skipped that part about Partnership long term care insurance (LTCI) policies.
Insurance plans that comply with the Partnership LTCI Program are so different from other insurance products that provide long term care (LTC) coverage because Partnership plans would allow its policyholders to receive supplemental coverage from Medicaid should they need ongoing care after having exhausted their insurance benefits. This is definitely something which owners of other LTCI policies can only dream for themselves because Medicaid coverage is not obtainable with a reimbursement policy or an indemnity plan.
Partnership LTCI policies are actually for individuals who cannot afford to purchase a policy with a high maximum benefit amount and a long benefit period due to their limited budget. However, more and more rich folks are taking an interest in this type of LTCI owing to its asset protection feature.
Partnership qualified LTCI policies carry that special feature known as Medicaid asset protection and anyone with a substantial amount of assets will find this really beneficial. Once an individual with this kind of policy has exhausted his benefits he can apply for Medicaid assistance without spending down a portion of his assets equivalent to the total amount of benefits paid out to him by his policy.
To further illustrate that, here’s 82-year-old Mrs. Siegel who has a Partnership LTCI plan which stipulates a maximum benefit amount of $300,000 for a three-year benefit period. Six months before getting to the third and final year of her coverage period Mrs. Siegel runs out of benefits but she has to continue her therapy sessions in a nursing home. So, Mrs. Siegel applies for Medicaid coverage while protecting her assets worth $300,000 as this is the same amount of benefits which she has received from her insurance coverage.
Had Mrs. Siegel bought another type of LTCI policy, she wouldn’t instantly qualify for Medicaid. She will be required to spend down her assets until it meets the asset and income requirement of the Medicaid program in her state of residence.
Partnership Long Term Care Insurance and the Reciprocity Agreement
The Partnership LTCI Program was first established in four U.S. states namely California, Indiana, Connecticut, and New York. Nowadays, practically all 50 states implement the Partnership Program but it is not advisable to purchase a Partnership plan where you live and suddenly retire somewhere else.
While most states have the Partnership Program already, you have to check which ones are participating in the Program’s reciprocity agreement before you relocate. If the state you plan to move to is participating in the reciprocity agreement you will manage to receive the same amount of benefits and Medicaid asset protection which are being offered in the state that issued your Partnership LTCI policy. On the other hand, if you wind up in state that is not active in the Partnership Program’s reciprocity agreement you could encounter some problems in terms of benefit claims and asset protection.
Find out what factors make for a certified Partnership long term care insurance policy. Find time to discuss this matter with a professional LTCI representative who is authorized to sell Partnership plans in your state of residence.
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