The partnership program is designed to provide incentives for people to take personal responsibility for their own care by purchasing long-term care insurance. The program was designed to reduce Medicaid costs for nursing home care. In addition, it encourages Kentuckians to purchase long-term care insurance in order to protect some or all of their assets by providing exemptions from the Medicaid spend down requirements.
Consumers who purchase and utilize benefits from a long-term care insurance
partnership policy will be exempt from Medicaid spend down requirements equal to the amount of benefits paid by the long-term care partnership insurance policy. For example, if your long-term care partnership policy paid $200,000 in benefits, then $200,000 of your assets would be exempted from Medicaid spend down requirements.
This program will help Kentuckians financially prepare for the possibility of needing long-term care services such as nursing home care, home health care or assisted living facility care. You will be able to purchase this product from any insurance company who chooses to offer a long-term care partnership policy once the program goes into effect.
Will my assets be exempt for Medicaid spend down requirements if I already have a long-term care policy?
Only the policies issued after June 5, 2009, can be considered partnership policies. Not all long-term care policies issued after the date the partnership
program goes into effect will be considered partnership policies.
Partnership policies will also have to meet certain requirements under federal law. If your current long-term care company offers partnership policies, then you might be permitted a period of time to exchange your current long-term care policy for a partnership policy with the same company. Any company offering partnership policies shall offer exchanges to qualifying policyholders.
What happens if I purchase a long-term care partnership policy and move to another state?
If you move to another state that participates in the partnership program
and they also accept the reciprocal agreement, then you could get credit from
that state’s Medicaid spend down requirements. Your policy would still have value even if you do not qualify for a partnership policy. If you move to a state that does not participate in the partnership program or does not accept the reciprocal agreement, then you would not be given credit toward that state’s Medicaid spend down requirements. You might want to take that into consideration before moving to another state.
For a complete copy of the 127 page brochure, please click HERE.
Source: Commonwealth of Kentucky, Public Protection Cabinet, Department of Insurance – Long-Term Care Insurance Guide 2012-2013
For additional information about Kentucky long-term care insurance plans, please submit your information:
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