Legislation passed by the State of Washington aims to tackle the problem of the lack of Long Term Care Insurance coverage for its residents.  They have set up a “partnership” program between private industry and the State to encourage residents of Washington to prepare for their future long-term care needs.  Awareness of the need for Long Term Care Insurance remains low in Washington, as in the rest of the country.  Long Term Care Insurance covers the cost of services such as nursing homes, in-home care and assisted-living care when one is unable to care for themselves and is not covered by regular health insurance and only by Medicaid if one qualifies, which can be difficult without exhausting all of your assets.

The Washingon Long Term Care Partnership has created a program “whereby private insurance and medicaid funds shall be used to finance long-term care. For individuals purchasing a long-term care insurance policy or contract governed by chapter 48.84 or 48.83 RCW and meeting the criteria prescribed by the State legislation, and any other terms as specified by the office of the insurance commissioner and the department of social and health services, this program shall allow for the exclusion of some or all of the individual’s assets in determination of medicaid eligibility as approved by the federal health care financing administration.”

Residents of Washington State now have a means to complete their retirement portfolio with the one piece that can ensure a peaceful and secure retirement.  A recent study found that 7 in 10 Americans have made no plans for long-term care and many were not even aware of this type of insurance and what it covers.  And, given that the Department of Health and Human Services estimates that 2/3 of all Americans will need long-term care at some point after they pass age 65, this does, indeed, constitute a problem to be reckoned with.  Many Americans, regardless of the State in which they live, are now at risk of having to exhaust their nest egg or rely on their children or other relative to care for them in retirement should they become unable to care for themselves.

Via the Washington Long Term Care Partnership Program, residents of Washington are able to purchase Long Term Care Insurance with a number of policy options that meet certain State-mandated criteria.  Washington, like many states, hopes to reward those who do their part in solving this problem of Long Term Care Insurance coverage by planning ahead and protecting themselves and their assets.  Basically, it works like this: the amount of coverage you purchase in a Long Term Care Insurance policy can be disregarded should you need to apply for Medicaid.  This means you’ll be able to hold on to more of your nest egg without having to pay out-of-pocket for the long-term care you need.

Highlights and requirements of the Partnership Program include:

• Be guaranteed renewable;
• Provide coverage for nursing home care and provide coverage for an alternative plan of care benefit as defined by the commissioner;
• Provide optional coverage for home and community-based services. Such home and community-based services shall be included in the coverage unless rejected in writing by the applicant;
• Provide automatic inflation protection or similar coverage for any policyholder through the age of seventy-nine and made optional at age eighty to protect the policyholder from future increases in the cost of long-term care;
• Not require prior hospitalization or confinement in a nursing home as a prerequisite to receiving long-term care benefits; and
• Contain at least a six-month grace period that permits reinstatement of the policy or contract retroactive to the date of termination if the policy or contract holder’s nonpayment of premiums arose as a result of a cognitive impairment suffered by the policy or contract holder as certified by a physician.

The inflation protection provisions above are an important part of any Long Term Care Insurance policy.  They insure that your protected in the future and that you are paid in “tomorrow’s dollars” and not at today’s rates which is important as the cost of long-term care services is set to rise substantially in the coming decades.

If you’re a resident of the State of Washington, you can start planning today for your future long-term care needs and securing all that you’ve worked so hard to achieve for your retirement by purchasing a Long Term Care Insurance policy.  LTC Tree can assist you in finding a plan through the Washington Long Term Care Partnership Program that is right for you, no matter your age or financial status.  If you’d like to learn more about our affordable Long Term Care Insurance policies, simply fill out this form.  Thank you for reading today’s blog.  We really appreciate it.