Protection and Coverage from Partnership LTCI Policies

Long Term Care Insurance Partnership (LTCIP) plans stemmed from the collaboration of private insurance companies and state Medicaid programs to encourage middle-class individuals and families to buy long term care insurance (LTCI) at a price that they can afford. Prior to the creation of the Partnership Program, many people were hesitant to get LTCI policies because they fear that these will cost them a chunk of money for the annual premiums. In truth, they have every reason to fear the price of an LTCI policy especially if they’re going to buy at an older age since this is going to be too expensive. What made matters worse at the time was the fact that most people didn’t have much choice but to secure a five-year coverage or even lifetime coverage because a shorter benefit period might put them in an unpleasant financial situation. Despite their efforts to keep their policies, many of them had to cancel since they had difficulty maintaining the high annual premiums. Now unequipped for tomorrow’s cost of care, these people are hoping that Medicaid would aid them. Medicaid is a federal health insurance program that was primarily designed for poor individuals and families. Nowadays, though, the program has been spending more than it is supposed to for long term care since a big percentage of middle-class Americans are without LTCI policies. According to the U.S. Department of Health and Human Services, more than 70 million Americans are expected to need care but only 10 million are insured. If every one of the 70 million will turn to Medicaid, it won’t take long for the coffers of this program to dry up. Long Term Care Insurance Partnership Plans Having a Partnership qualified LTCI policy will allow an insured individual to delay his need for Medicaid, and if ever he’ll need it he shall be spared from the program’s spend-down rule since his policy features the Medicaid Asset Protection. Under the 2005 Deficit Reduction Act (DRA) in relation to the Partnership Program, an individual who owns a Partnership qualified policy can protect the amount of his assets which is equivalent to the total amount of benefits which he has received from his policy should he apply for Medicaid assistance. For example, an individual’s LTCI policy states a maximum benefit amount of $250,000 for a maximum benefit period of three years. After having used up his insurance benefits in the three-year period, the insured can apply for Medicaid for further care and protect his assets worth $250,000. rnHad he purchased another type of LTCI policy, that insured individual will have to spend down his assets in compliance with Medicaid’s requirement for eligibility. Long Term Care Insurance Partnership plans offer affordability and extensive coverage. It is affordable because you can settle for a short benefit period which is tantamount to paying a lower annual premium. Should you require further care upon reaching the end of your benefit period, you can approach Medicaid without the fear of losing what you have accumulated through years of earnest hard work.