Secure the Ideal Long Term Care Plan in California

If you’re retiring soon, California is not the best place to settle in considering its very high cost of living. Meanwhile, if you’ve been a resident of this state since the day you were born and you don’t see why you should leave then perhaps you could consider a California Long Term Care Partnership plan to alleviate the cost of your long term care (LTC) needs.

California is famous for its posh restaurants, beaches, Hollywood stars, Napa Valley wineries, and high-end nursing homes among others. In other words, it is known as an expensive state. Unless you are earning more than $100,000 annually this place is not recommended for you.

On the other hand, if you are looking at different platforms for a potential LTC plan perhaps it’s worth stopping over California as it happens to be one of the four states which piloted the Partnership Long Term Care Insurance (LTCI) Program, a collaboration between state government agencies and private insurance companies to encourage people to buy affordable LTCI coverage.

California’s Partnership Program allows a resident of California to purchase a policy with a short benefit period such as three years and save on the premium of his coverage. Upon reaching the end of his benefit period and he realizes that he still needs ongoing care, the policyholder can apply for Medi-Cal, California’s Medicaid program, and exempt a portion of his assets which is equivalent to the total amount of benefits which was initially paid out to him by his policy.

Medi-Cal normally requires any single individual who wishes to avail LTC coverage to spend down his assets until it is not more than to $2,000. Meanwhile, if it’s a couple that wishes to apply for assistance, their assets must not exceed $3,000. Now with a partnership LTCI plan you don’t need to comply with these rules.

California Long Term Care Partnership Plans

You will find California on the list of states with the highest LTC costs. That said, it is really ideal to have a partnership LTCI policy if you live here but not everybody in California will qualify. One has to be a resident of California before he can apply for this type of LTCI coverage.

Once you are found eligible, you can choose to buy a comprehensive partnership policy or another type which is known as facility only policy. The former partnership LTCI policy provides coverage in practically all kinds of LTC settings so you can receive care at home, in an assisted living facility, continuing-care retirement community, or in a nursing home among others and not worry about the expenses that you would incur because your policy will shoulder these up to your policy’s maximum benefit amount.

Now choosing the facility only policy will limit your coverage to nursing home care or community-based care. If you’re going to hire a home health aide you’ll have to pay his rate from out-of-pocket.

Both types of California Long Term Care Partnership plans are required to provide compound inflation protection to buyers who are younger than 70.