Long Term Care Insurance State Partnership Plans
History of the Long Term Care Insurance Partnership Plans
Long-term care insurance partnership program was created in the mid-1980s to encourage people who potentially would turn to their State Medicaid (Welfare) program to pay their actual long-term care (LTC) expenses to plan ahead and buy long term care insurance. How it works is if a person buys a qualified long term care Partnership Plan in an approved State, if they were to ever use up their LTC policy's benefits they could immediately qualify for Government assistance without have to use their own money. Typically the State will match dollar for dollar, what that means if your policy paid $200,000 in benefits you could shelter $200,000 of your own money. Currently, these programs operate in several States: California, Connecticut, Indiana, and New York.
| State | Policies in
Force | Number
Receiving
Partnership
Benefits |
| California |
64,915 |
343 |
| Connecticut |
64,915 |
141 |
| Indiana |
29,189 |
83 |
| New York |
47,539 |
642 |
| 4 State Total |
172,477 |
1,209 |
Source: Government Accountability Office, 2005.
Expansion of the Long Term Care Insurance Partnership Plan
The Deficit Reduction Act of 2005 (DRA 05) now allows all states to create Long Term Care Insurance Partnership Plans and most States have jumped on board or are in the process of designing the plans. Partnership policies in these new programs must meet specified criteria, such as federal tax-qualification, identified consumer protections, and inflation protection provisions.
States with Long-Term Care Partnership Legislation on the books
| Arkansas |
Iowa |
North Dakota |
| Colorado |
Maryland |
Ohio |
| Florida |
Massachusetts |
Oklahoma |
| Georgia |
Michigan |
Pennsylvania |
| Hawaii |
Missouri |
Rhode Island |
| Idaho |
Montana |
Virginia |
| Illinois |
Nebraska |
Washington |
Source: National Association of Health
Underwriters Web site, 2006.
As of October 24,2007 we have received word that Florida, Virginia,and Colorado have their Long Term Care Partnership plan in force.
At LTCtree.com we keep up with the progress of each State's Long Term Care Partnership Plans and will be happy to help you sift through the government red-tape the best we can. There are some true advantages of having a Long Term Care Insurance Partnership plan in many cases so to get your free LTC quotes simply fill out the form below.
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