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What are partnership policies?
This is a new type of long-term care policy
that lets you protect more of your assets (money in the bank, investments,
a house) if you require long-term care, run out of money and need to apply
for Medicaid. These policies have been sold in Oregon since January of
2008.
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Are all long-term care policies
qualified partnership policies?
No. These policies must meet minimum benefit
requirements of state and federal governments. For example, policies purchased
at certain ages must offer some inflation protection so that the amount
your policy pays increases as the cost of care grows.
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What is special about a partnership
plan?
Even with a long-term care policy, some
people eventually have to apply for Medicaid to help them pay for their
care. Each dollar the policy pays for your care is a dollar that the state
can't later claim from your estate if you qualify for Medicaid. Generally,
people qualify for Medicaid when they have assets of $2,000 or less.
Example: Your long-term care partnership policy paid $50,000 for your
care before you applied for Medicaid. You would get to keep both $2,000
and $50,000 and still be eligible for Medicaid. Medicaid would collect
$50,000 less from your estate, if that amount is still in your estate
when you die.
A partnership policy does not automatically make you eligible for Medicaid.
All other Medicaid criteria will still apply, including home equity limits
that may make you ineligible for Medicaid. Contact the Oregon Department
of Human Services if you have Medicaid eligibility questions. Call 1-800-282-8096
or visit: http://www.oregon.gov/DHS/spwpd/ltc/main.shtml#funding
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Does the status of a policy ever
change?
A partnership policy must meet state and
federal requirements. If you purchase a policy and then make changes later,
confirm with your insurance agent that the changes will not affect the
status of your plan. If you move out of Oregon, a partnership plan may
protect assets for Medicaid in another state, but only if that state recognizes
your policy as a partnership policy under its federally approved partnership
program.
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How do I make sure I get a partnership
plan and not just a regular long-term care insurance policy?
Let your insurance agent know that you
want a partnership policy. Your insurance company will provide a written
verification that your policy is a partnership policy when you receive
it.
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Who sells partnership plans in Oregon?
The Oregon Insurance Division posts a list
of companies authorized to sell partnership policies, which is updated
periodically. This list is at: http://insurance.oregon.gov/consumer/long-term-care/ltc-insurers-list.html
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Where can I get more information
on long-term care in general?
- You may want to seek assistance from a
health insurance agent. Agents who sell partnership policies are required
to receive specialized training in long-term care insurance, including
in partnership policies.
- This government Web site provides information on understanding, planning
and paying for long-term care: www.longtermcare.gov
- The Oregon Insurance Division has several publications that discuss
long-term care: http://insurance.oregon.gov/consumer/long-term-care/long-term-care-info.html
- The Insurance Division's consumer advocates are available at no charge
to answer your questions: 503-947-7984, 1-888-877-4894, cp.ins@state.or.us
