South Carolina Long Term Care Partnership

South Carolina Long Term Care Partnership

South Carolina long term care insurance partnership imageThe South Carolina Long Term Care Partnership is an alliance between the private insurance industry and the South Carolina state government to help residents afford future long-term care services.

The long-term care partnership program helps residents of South Carolina pay for their long-term care without having to spend down their assets, as they would have to do if they relied solely on Medicaid to pay for their long-term care.

Partnership policies provide an additional level of protection, when compared to a regular long-term care insurance policy. For every dollar that a long-term care partnership policy pays out in benefits, a dollar of personal assets can be protected if you apply for Medicaid. For example, if your long-term care partnership policy paid out $250,000 for your long-term care expenses, an additional $250,000 of your assets would be protected from Medicaid spend down and Medicaid estate recovery.

By allowing the people of South Carolina to keep some or all of what they’ve worked hard to accumulate, and by reducing Medicaid costs for the state, the partnership program provides benefits for everyone. State and federal laws also allow for deductions for qualified long-term care insurance premiums when calculating annual income taxes.

 

Official Name of the Long-Term Care Partnership program:

South Carolina Long-Term Care Partnership Program

 

Other names by which it may be known:

South Carolina Long Term Care Partnership

South Carolina Partnership for Long Term Care

 

The website address:

There is no state-sponsored website.

 

The official brochure:

There is no state-published brochure.

 

Age-related inflation protection requirements:

60 or younger:  compound annual inflation protection at a rate not less than 3% or at a rate based on changes in the Consumer Price Index.

61 to 75:  some level of inflation protection is required.

76 or older:  the policy may, but is not required to, provide any inflation protection.

 

Does a 1% Compound Inflation Benefit meet the Inflation Requirements of the South Carolina Long Term Care Partnership Program?

No. 

 

Can a policy with an escalating premium and an age-appropriate inflation benefit be a Partnership Qualified Policy (PQP)? 

Yes. 

 

Can a policy with an Inflation Benefit that decreases over time be a Partnership Qualified Policy (PQP)? 

Yes, as long as the inflation benefit is not less than the age-appropriate requirements. 

 

What if Inflation Growth stops at age 76? 

The policy retains its Partnership Qualified Status in the South Carolina Long Term Care Partnership

 

What if policyholder stops the policy’s inflation growth after age 75? 

The policy retains its Partnership Qualified Status in the South Carolina Long Term Care Partnership program.

 

List of Companies Selling Long Term Care Insurance in South Carolina:

  • Bankers Life and Casualty
  • Federal Long-Term Care Insurance Program (for federal employees).
  • Genworth
  • John Hancock
  • LifeSecure
  • Mass Mutual
  • Medamerica
  • Mutual of Omaha
  • New York Life
  • Northwestern Mutual
  • State Farm
  • Thrivent
  • Transamerica
  • United Security Assurance

NOTE: Some of these companies do NOT sell policies under the South Carolina Long Term Care Partnership program.  Please check with a licensed agent to verify if the policy you’re considering is a Partnership Qualified Policy (PQP).

 

This state’s Website or Guide to Long-Term Care Insurance:

http://www.doi.sc.gov/609/Long-Term-Care-Insurance

 

Own Your Future Website

South Carolina has not participated in the Own Your Future campaign.

 

Own Your Future Brochure

South Carolina has not participated in the Own Your Future campaign.

 

Does the Federal Long-Term Care Insurance Program qualify under the South Carolina Long-Term Care Partnership Program?

The Federal Long-Term Care Insurance Program is considered, by South Carolina, to be a Partnership-Qualified policy.  Federal employees, retirees, annuitants and their families who use a PQP policy in this state?

 

Must PQP benefits be exhausted before qualifying for Asset Disregard? 

No.

 

Short Description of the South Carolina Long Term Care Partnership program:

Under the South Carolina Long-Term Care Partnership Program, individuals who purchase long-term care insurance policies (“Partnership Policies”) that meet certain requirements specified by the Deficit Reduction Act (DRA) can apply for Medicaid under special rules for determining financial eligibility and estate recoveries.  These special rules generally allow the individual to protect assets equal to the insurance benefits received from a Partnership Policy so that such assets will not be taken into account in determining financial eligibility for Medicaid and will not subsequently be subject to Medicaid liens and recoveries.