How Long Term Care Insurance Partnership Policies Work?
The government has been continuously developing and creating other options and alternatives in order to cater to the financial capacities of the majority of the American population. With this in mind, the government, together with the cooperation of some private insurance providers in the country, has implemented the long term care insurance partnership program.
The Deficit Reduction Act (DRA) of 2005 made way for this provision to come true. It tasked the states to come up and execute such provisions so that more and more United States residents will be encouraged, and eventually purchase an LTC insurance plan for their future LTC needs.
Aside from the goal of providing cheaper options for LTC plans, the Partnership program also aims to lessen the expenditures of Medicaid that amounts to almost $1 billion dollar every year, and this figure is just for paying LTC expenses alone.
Although the Partnership program offers cheaper and more affordable monthly premiums, the services and facilities that they provide are almost the same when compared to the other private LTC insurance plans purchased from private insurance companies.
The Partnership plans may even be more beneficial and offer two more additional and unique features that also give the insured individuals more chances of qualifying for Medicaid benefits.
One of the two unique features that it has is known as the Dollar-for-Dollar asset protection wherein an insured individual is allowed to keep a dollar of his assets for every dollar that his partnership policy pays out in benefits. Medicaid will then disregard the protected assets, giving him more chances and opportunities to qualify in receiving its benefits.
But owning a long term care insurance partnership policy do not guarantee or assure an individual of automatically being qualified or eligible for Medicaid benefits. He must still be able to pass and meet the standards and requirements set by Medicaid before they can enjoy its benefits.
Another unique feature that Partnership plans offer is the reciprocity standards. With this feature, a Partnership insurance plan owner is allowed to transfer or move from one state to another without the need of purchasing another LTC insurance Partnership plan. The insurance policy that he previously acquired may still be used and is still valid if ever he decides to receive his policy benefits in his new state or location. But the individual must make sure that the state that he transferred to also offers Partnership policies and participates in the reciprocity agreement among the states.
When buying a Partnership policy, one should still remember the three mandatory features that all LTC insurance plans must have. These are the minimum daily benefit amount, the benefit coverage period, and inflation protection.
Of these three, the most important is the inflation protection because it has the ability to adjust or regulate the value of a certain insurance policy based on the present costs of LTC services, regardless if the policy was acquired at a much lower price.
Long term care insurance partnership policy is undeniably one of the most helpful and most beneficial of all the options that the public have in order to experience owning an LTC insurance policy.
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