Arkansas Long-Term Care Partnership Program
Arkansas’ Long-term Care Partnership Program is a partnership program between Medicaid and private long-term care insurers designed to encourage individuals to purchase private long-term care insurance. Arkansas long-term care partnership policies are tax qualified (a portion of premiums paid may be claimed as a tax deduction) under federal law; provide policyholders with inflation protection; and most importantly, provide dollar-for-dollar asset protection in the event the policyholder needs to apply for long-term care Medicaid assistance. For every dollar that an Arkansas long-term care partnership policy pays out in benefits, a dollar of assets can be protected from Medicaid spend-down requirements.
The Arkansas Long-Term Care Partnership is a program authorized by Congress and the Arkansas Legislature to encourage and recognize the efforts of Arkansans to prepare for the financial impact of the need for long-term care. Qualifying for Medicaid normally requires a very low-level of personal assets, often forcing seniors to spend down their hard-earned money to qualify. With a Long-Term Care Partnership policy, you’ll get to keep more of what you’ve worked to earn and save over your lifetime if you meet other Medicaid eligibility requirements including the income standards. In its calculation of eligibility for Medicaid benefits, Medicaid will disregard or exclude assets equal to the amount of benefits paid under a Long-Term Care Partnership policy.
January 1, 2008
Does 1% Compound Qualify
No. Only for issue age 76 or over.
Inflation Requirement issue age 60 and under
By compounding annually at a stated rate of not less than 3% or based on changes to the Consumer Price Index.
Inflation Requirement issue age 61 to 75
By annual simple interest at a stated rate of not less than 3% or based on changes to the Consumer Price Index.
Inflation Requirement issue age 76 or over
What if Inflation Growth stops at age 76