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Partnership Long Term Care Insurance
Lifetime Asset Protection


A Partnership Program is a collaboration or “partnership” among a state government, the private insurance companies selling long-term care insurance in that state, and state residents who buy long-term care Partnership policies.

The purpose of the Partnership program is to make the purchase of shorter term more comprehensive long-term care insurance meaningful by linking these special policies with Medi-Cal (Medicaid) for those who continue to require care to protect their assets from Estate Recovery.

Only traditioinal long term care insurance qualifies for Partnership asset protection, Life/LTC and Annuity/LTC do not qualify, neither do older policies sold before your state adopted Partnership.

Click to get a California Partnership quote!

Partnership for Long Term Care Policies
The Partnership for Long Term Care program works in cooperation with private insurance companies. These companies have agreed to offer high quality policies that must meet stringent requirements set by the State Insurance Department and/or the Department of Health Services. These special policies are called "Partnership policies".

A Partnership policy cost the same as a non-Partnership yet provides additional benefits such as "asset protection" designed to protect you from being forced to spend everything you have worked for on long term care, thus assuring that catastrophic long term care expenses won't reduce you to poverty even if you run out of insurance benefits.

Estate Recovery is where the state can examine your financial records when you apply for Medi-Cal to see if you have transferred any assets to avoid spending them for your care. In California there is a 60 month "look back" period, which means if you transfer your assets today the state can "look back" 60 months to see if any have been transferred and "attach" those assets to repay Medi-Cal for your care.

Under the Deficit Reduction Act of 2005 states must impose a 60-month "look back" period. Prior to January 1, 2010 California had a 30-month "look back" period. The 30-month policies sold prior to Jan. 1, 2010 are grandfathered.

Read the Partnership letter from the State of California.

Value of a Partnership Plan
The lifetime asset protection provided by a Partnership policy basically says that for every dollar of insurance money that is spent for your care, you get to keep an equal amount and still qualify for Medi-Cal (Medicaid).

To qualify for Medi-Cal you normally have to spend down savings to the poverty level of $2,000. With the Partnership policy you get to keep as much money as your policy paid out plus the $2,000 everyone else gets to keep.

Why would someone who has substantial assets want a Partnership policy?
If your policy spent $300,000 for your care and you ran out of insurance money but still needed care you could keep $302,000 and then Medi-Cal would pay. Wouldn't your quality of life be better with $302,000 in cash than with only $2,000?

The other benefit of the Partnership policy is that it will give you the time you need to legally transfer assets.

The Partnership policy can be considered a higher quality product than a non-Partnership because of the state requirements for companies to participate.

There are two requirements that the consumer has to meet for Partnership.
1. A daily benefit minimum
2. The Compound Inflation Protection Benefit Increase is required if you under 70 years of age, those older can choose between Compound and Simple Inflation Protection.

Medi-Cal Questions & Answers
Medi-Cal Estate Recovery

Click to get a California Partnership quote!

For states other than California.  Medicaid asset protection information and insurance quotes for all participating states here: Partnership for Long Term Care

Contact us if you have any questions, need additional information, or have feedback for us.


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