QUALIFIED STATE LONG-TERM CARE PARTNERSHIP
01.Core Concepts
PROGRAM • Partnership-qualified long-term care policies: • Help people purchase shorter term, more complete long-term care insurance • Include inflation protection • Allow people to apply for Medicaid under modified eligibility rules if there is continued need for long-term care after the policy maximum is reached • Include a special “asset disregard” feature 61 PARTNERSHIP: QUALIFIED POLICY EXAMPLE • Axel, who is single, purchases a partnership-qualified policy with a value of $100,000. Some years later he rece ives benefits under that policy up to the policy’s lifetime maximum coverage (adjusted for inflation) equaling $150,000. • Axel eventually requires more long-term care services and applies for Medicaid. Medicaid Only Partnership Program Axel would be entitled to keep only $2,000 in assets. Axel can keep $152,000 in assets and the state will not recover those funds after his death. He would have to spend down any assets over and above this amount. Axel would only have to spend down his assets over and above the $152,000 in order to be eligible for Medicaid.