| Q: Some insurance companies offer Partnership | | | | NJ Medicaid. |
| Qualified long term care insurance policies. Can you | | | | The New York State Partnership for Long Term Care |
| explain what that means, what advantages it may | | | | Only two states in the entire U.S. can offer both Dollar |
| provide and if the New York State Partnership for | | | | for Dollar and Total Asset Partnership Programs - |
| Long Term Care is unique? | | | | Indiana and New York. As its name implies, Total |
| The Problem - Limited Benefits and Limited Medicaid | | | | Asset offers unlimited asset protection from Medicaid |
| Most long term care (LTC) insurance policies provide a | | | | - far more powerful than Dollar for Dollar. |
| limited amount of benefits. Even lifetime benefit policies | | | | Let's say you are a New York resident who |
| generally have a daily, monthly or annual limit. The cost | | | | purchases a New York State Partnership for Long |
| of long term care after a policy has been exhausted | | | | Term Care Qualified policy. After you exhaust your |
| can be financially devastating for you and your family. | | | | policy, you can apply for New York State Medicaid |
| To compound the problem, assistance in the form of | | | | Extended Coverage - which allows you to protect |
| Medicaid is generally limited to the impoverished. | | | | some or all of your assets, depending on whether you |
| The Solution - Partnership Qualified Long Term Care | | | | select a Dollar for Dollar Asset Protection plan or a |
| Insurance Policies | | | | Total Asset Protection plan. However, your income is |
| The Partnership Program is based on the Robert | | | | considered in determining your eligibility for Medicaid |
| Wood Johnson Foundation program called the | | | | Extended Coverage. The plans are as follows: |
| Program to Promote Long Term Care Insurance for | | | | Plan Name Min Policy Duration Max Policy Duration Min |
| the Elderly, initiated in 1987. Today, a Partnership | | | | Daily Benefit 2009 Max Elimination |
| Program is a "partnership" between a state, an | | | | Total Asset 50 3 Yrs Nursing Home (NH) Unlimited |
| insurance company and state residents who buy long | | | | NH=$218, HC=$109 100 Days 3/6/50 or 6 Yrs Home |
| term care Partnership policies. With a Partnership | | | | Care (HC)* |
| Qualified policy you can apply for Medicaid with 'asset | | | | Total Asset 100 4 Yrs Nursing Home (NH) Unlimited |
| disregard'. This allows you to keep assets that would | | | | NH=$218, HC=$218 100 Days 4/4/100 or 4 Yrs |
| otherwise be disallowed. In almost all states that have | | | | Residential Facility |
| Partnership Programs, the amount of assets Medicaid | | | | Dollar for Dollar 50 1.5 Yrs NH or 3 Yrs HC* 2.5 Yrs |
| will disregard is equal to the amount of the benefits | | | | NH or 5 Yrs HC NH=$218, HC=$109 60 Days 1.5/3/50 |
| you actually receive under your LTC Partnership | | | | Dollar for Dollar 100 2 Yrs NH or 2 Yrs HC 2.5 Yrs NH |
| Qualified policy. This type of disregard is often referred | | | | or 2.5 Yrs HC NH=$218, HC=$218 60 Days 2/2/100 |
| to as Dollar for Dollar. | | | | * Home care days are counted on the basis of 2 |
| Let's say you are a New Jersey resident who | | | | home care days equaling 1 nursing home day. |
| purchases $306,600 (the average rate of a private | | | | Action Step - Purchase a Long Term Care |
| nursing room for an average three year stay in NJ in | | | | Partnership Policy |
| 2008) worth of insurance through a Partnership | | | | When you purchase a Partnership Qualified policy, you |
| Qualified policy. When the care is needed, the policy | | | | gain the safety of long term care insurance and the |
| actually pays for $900,000 of care (due to inflation | | | | peace of mind provided by asset protection - total |
| protection). Under the state's Partnership Program you | | | | asset protection in the case of Indiana and New York. |
| would then have $900,000 of assets protected from | | | | |