Long Term Care Insurance with Lifetime Asset Protection

A Partnership Program is a collaboration or "partnership" among a state government, the private insurance companies selling long-term care insurance in that state, and state residents who buy long-term care Partnership policies. The purpose of the Partnership program is to make the purchase of shorter term more comprehensive long-term care insurance meaningful by linking these special policies with Medicaid for those who continue to require care.

The goal of The Partnership for Long Term Care is to protect citizens from being forced to spend everything they have worked for on long term care, to prevent or delay dependence on Medicaid, and to protect their assets from Medicaid estate recovery.

The only reason to not get a Partnership long term care insurance policy is if it is not yet available in your state. (guidetolongtermcare.com)

Partnership for Long Term Care Policies
The Partnership for Long Term Care program works in cooperation with private insurance companies. These companies have agreed to offer high quality policies that must meet stringent requirements set by the State Insurance Department and/or the Department of Health Services. These special policies are called "Partnership policies".

A Partnership policy cost the same as a non-Partnership yet provides additional benefits such as "asset protection" assuring that catastrophic long term care expenses won't reduce you to poverty even if you run out of insurance benefits.

A part of Medicaid is called Medicaid Estate Recovery. This is where the state office can examine your records to see if you have transferred any assets to avoid spending them for your care. In most states there is a 50 month "look back" period, which means if you transfer your assets today the state can "look back" 50 months to see if any have been transfered and "attach a lien" those assets to repay Medicaid for your care.

Value of a Partnership Plan
The lifetime asset protection provided by a Partnership policy basically says that for every dollar of insurance money that is spent for your care, you get to keep an equal amount and still qualify for Medicaid (Medi-Cal).

Rather than having to spend down your assets to the poverty level of $2,000 you get to keep as much money as your policy paid out plus the $2,000 everyone else gets to keep.

Why would someone who has substantial liquid assets want a Partnership policy?
If your policy spent $200,000 for your care and you ran out of insurance money but still needed care you could keep $202,000 and then Medicaid would pay. Wouldn't your quality of life be better with $202,000 in cash than with only $2,000?

The Partnership policy can be considered a higher quality product than a non-Partnership because of the state requirements for companies to participate.
There are two requirements that the consumer has to meet for Partnership.
1. A daily benefit minimum.
2. The Compound Benefit Increase is required if you are under a certain age, those older can choose between Compound and Equal Benefit Increase.