Important Points about the Kansas Partnership for Long-Term Care
- Partners in this program are The State of Kansas, through the Kansas Insurance Department, the Kansas Dept. of Aging and the Kansas Health Policy Authority; and insurance companies in Kansas selling long-term care insurance and certified in the Long-Term Care Partnership Program.
- Asset protection, not income protection, is a key component to the program. For every one dollar of long-term care insurance paid, one dollar of personal assets will be protected if the policyholder ever needs to apply for Medicaid services. For example, if you have a $100,000 long-term care policy, once those policy benefits have been exhausted, under the program you can protect $100,000 of your assets if you qualify and then receive Medicaid benefits.
- The Deficit Reduction Act of 2005 allowed all states the option of certifying partnership policies, provided the policies:
o Met specified criteria for federal tax qualification,
o Identified consumer protection provisions (from the National Association of Insurance Commissioners Model Act), and
o Provided inflation protection (those purchasers under 61, compound annual inflation protection; those 61-76, some level of protection; and those 76 and older, inflation protection may be offered but not required).
- Insurance companies with approved long-term care policies that meet the three criteria are qualified under the program.
- The average stay in a long-term care facility is 2.5 years.
- In Kansas, the average cost per day in a long-term care facility is $129; the yearly average is more than $47,000. Nationwide, the yearly cost is approximately $75,000. This is expected to double by 2018.
- Medicaid eligibility is not automatic; state income and eligibility criteria come into play once policy benefits have been exhausted.
- Tax-qualified plans from companies listed in the Kansas Insurance Department’s Long-Term Care Shoppers Guide may have Partnership Program policies. Check with your local insurance agent for details.
- The National Association of Insurance Commissioners recommends that agents and brokers selling long-term care insurance in Kansas be required to complete 8 hours of training initially, with a follow-up 4 hours every two years.
What is the Long-Term Care Partnership?
The Long-Term Care Partnership Program is a public/private cooperative program that allows states to be designated as Partnership states under the Deficit Reduction Act of 2005. Insurance policies must meet the state and federal Partnership requirements.
People who purchase qualifying long-term care policies, after depleting their insurance benefits, may still qualify for Medicaid, provided they meet all other Medicaid eligibility criteria.
The Long-Term Care Partnership program provides dollar-for-dollar asset protection. Each dollar that your Partnership policy pays out in benefits entitles you to keep a dollar of your assets if you ever need to apply for Medicaid Services.
What is Medicaid?
Medicaid is the federal/state program that provides services to low income individuals. These services include payments for long-term care in nursing homes or assisted living if a person meets the eligibility requirements of the state where they reside.
Why consider a policy?
For most people, the benefits of their private Partnership insurance policy will provide all the care they will ever need. But, because of the unique asset protection feature, you won’t have to impoverish yourself if you run out of insurance benefits and still need care. Protected assets are not considered in determining Medicaid eligibility and estate recovery.
What does a Partnership Policy cost?
Each insurance company offering Partnership policies has its own premium rates. However, the younger you are when you purchase coverage, the lower your annual premium will be. That is a good reason to buy now rather than waiting.
Partnership long-term care insurance policies are only marketed by licensed insurance professionals who have completed training required by the State of Kansas.
For further assistance, please contact
Scott A. Olson at 877-727-9582
or email Scott at Scott@LTCShop.com
Kansas License #: 617232