OHIO

Loading
loading..

The Ohio Partnership for Long-Term Care Insurance is an initiative between the State and private insurance companies to encourage Ohioans to plan for their long-term care needs. The partnership established “partnership policies” which provide coverage for long-term care needs and also allows Ohioans the ability to obtain “Medicaid Asset Protection” – a benefit not available with other policies sold in Ohio.

How did the partnership programs begin?

Partnership programs began in 1992 in four states (CA, CT, IN, NY) as Robert Wood Johnson Foundation Grants. Results from the piloted partnerships show increases in the sale of affordable, high-quality private long-term care insurance to moderate income consumers most likely to deplete assets and rely on Medicaid for long-term care.  The Deficit Reduction Act of 2005 allows states to pursue public-private partnerships for long-term care insurance coverage aimed at providing options to consumers under certain conditions. Ohio Revised Code (ORC) 5111.18 required the Ohio Department of Job and Family Services, (ODJFS) to establish a partnership for long-term care insurance by September 1, 2007.

What is Medicaid Asset Protection?

This benefit is only available to those who purchase “qualified partnership policies.”  Medicaid asset protection simply allows Medicaid applicants to keep more assets and still potentially qualify for Medicaid coverage. Upon application for Medicaid, the total assets a
person may keep is the combined total of the Medicaid asset limit and the total amount paid by a partnership policy. (See example below.)  Partnership policyholders who need Medicaid to help pay for long-term care can apply at any time. Ohio’s Medicaid program can help pay the difference between what the policy covers and what is owed, or provide assistance once the policy is exhausted. In both cases, the benefit of Medicaid asset protection will be provided. The more the partnership policy pays, the higher the asset protection.

How does Ohio’s partnership program work?

For example, a single individual whose partnership policy has paid $100,000 toward nursing home or community-based long-term care would potentially be able to obtain Medicaid coverage and still retain $101,500 worth of assets.

What are the features of Ohio’s partnership program?

Ohio’s partnership program includes the following features:

  • Medicaid Asset Protection
  • Long-term care insurance policies that offer enhanced inflation protection
  1. For ages 60 or younger – includes a compound inflation benefit (a minimum of three percent compound or consumer price index)
  2. For ages 61 – 75 – includes some form of an inflation benefit (a minimum of three percent simple or consumer price index)
  3. For ages 76 and older – no purchase of an inflation benefit is necessary
  • Ability to exchange certain policies purchased on or after August 12, 2002 for a qualified partnership policy
  • Reciprocity with states interested in allowing buyers to claim Medicaid Asset Protection in a state other than the one in which the Partnership was purchased.
  • Support toward the ability to access Medicaid even when the partnership policy is not exhausted.This consumer guide contains information about long-term care options and long-term care insurance buying tips.

SOURCE:  Ohio Department of Insurance

Long Term Care Insurance Ohio Program Photo

2 Comments

  1. harshini Siriwardane March 26, 2012at 10:31 pm Reply

    I have an individual LTC plan that I purchased in 2013 through Genworth. This year I am employed by the University of Cincinnati (faculty) and as member of the Ohio State Teachers retirement system I am eligible to purchase an LTC policy at a much lower premium compared to what I am paying for Genworth. Are the LTC policies purchased through Ohio State Teachers Retirement System (offered through Prudential) qualified plans for the Ohio Partnership for LTC

    • LTCFacts March 26, 2012at 10:31 pm Reply

      Policies purchased through groups usually do not participate in a state-approved “Long-Term Care Partnership” program.

      There are several reasons for that but the main reason is that most group policies have a “Purchase Option” inflation benefit. A “Purchase Option” inflation benefit starts off with a very low premium but then increases significantly over time as your benefits increase.

      Policies with a “Purchase Option” inflation benefit usually do not meet the requirements under a state’s “Long-Term Care Partnership Programs”.

      You may want to do a detailed comparison between the inflation benefit in your Genworth policy and the inflation benefit in the group policy offered through the University.

      It is very likely that the Genworth policy has an inflation benefit that increases the benefits each year without increasing the premium every year.
      The group policy probably has an inflation benefit that increases the premium every time the benefits increase.

Leave A Comment

Layout mode
Predefined Skins
Custom Colors
Choose your skin color
Patterns Background
Images Background