The Long-Term Care Partnership Program, often referred to simply as the Partnership Program, is a collaborative initiative designed to provide individuals with a pathway to afford quality long-term care without depleting their life savings. Administered in Georgia by the Department of Community Health in conjunction with the Office of the Commissioner of Insurance and the Department of Human Resources, Division of Aging Services, this program bridges the gap between private long-term care insurance and Medicaid. It offers a strategic alternative to spending down assets to qualify for Medicaid assistance.
This innovative public-private partnership fosters a system where individuals can purchase affordable long-term care insurance and, if needed, access Medicaid benefits later while safeguarding a portion of their assets. The core concept of the Partnership Program revolves around asset protection through qualified long-term care insurance policies.
Understanding Medicaid Asset Protection
A key feature of the Long-Term Care Partnership Program is its unique Medicaid asset protection. For every dollar paid out in benefits from a Partnership-approved long-term care insurance policy, a corresponding dollar of your assets is shielded from Medicaid’s asset limit calculations. This means that if your Partnership policy pays out $100,000 in long-term care benefits, you can protect $100,000 of your assets when applying for Medicaid to cover further long-term care expenses. Furthermore, these protected assets are also exempt from Estate Recovery, up to the amount of benefits paid by the Partnership policy, offering additional financial security for your heirs.
Once the benefits from your private Partnership insurance policy are exhausted, and if you require continued long-term care, you can apply for Medicaid. The Partnership Program ensures that special, more favorable Medicaid eligibility rules are applied in such cases, primarily concerning asset limitations.
Key Features of Partnership Policies
Partnership policies are designed to be robust and beneficial, adhering to federal tax-qualified plan standards. This ensures certain tax advantages, though it’s always recommended to consult with a financial advisor for personalized advice. Moreover, these policies prioritize the financial protection of policyholders by including inflation protection benefits.
For individuals between 61 and 75 years of age at the time of purchase, Partnership policies are mandated to offer some level of inflation protection. While inflation protection is optional for those 76 years and older when purchasing a policy, it remains a highly recommended feature to consider, as it helps ensure that your benefits keep pace with the rising costs of long-term care over time.
It’s also important to note that some Partnership policies extend their coverage to include home and community-based services. For many, receiving care in a familiar home setting is preferable, making policies that cover these services particularly attractive. When exploring Partnership policies, it’s wise to inquire about the inclusion of home and community-based care benefits.
Who Should Consider a Partnership Policy?
A Long-Term Care Partnership policy is particularly well-suited for individuals who recognize the potential high costs of long-term care but can manage the premiums of long-term care insurance. It’s an especially prudent option for those who want to safeguard their accumulated assets from being entirely spent down on long-term care expenses.
Individuals who have diligently saved and invested throughout their lives, building a nest egg for retirement and their family’s future, are often ideal candidates for Partnership policies. Purchasing a policy at a younger age generally results in lower premiums, making it a more affordable and strategic long-term financial planning decision.
How to Explore and Purchase a Partnership Policy
Navigating the landscape of long-term care insurance can be complex. Before making a decision, consulting with a trusted financial advisor or a long-term care insurance agent is highly recommended. They can provide personalized guidance to help you select a Partnership product that aligns with your specific needs and financial situation.
To purchase a Partnership policy, you can reach out to your local insurance agent or contact insurance companies authorized to sell Partnership policies in Georgia. For a list of approved carriers, you can contact the Georgia Office of Commissioner of Insurance at (404) 656-2070 or 1-800-656-2298 (toll-free), or visit their website at https://oci.georgia.gov/. Additionally, some employers may offer long-term care insurance options as part of their benefits packages. It is important to remember that the state of Georgia itself does not sell Partnership policies but administers and oversees the Long-Term Care Partnership Program.
For further details about the Georgia Long-Term Care Partnership Program, you can visit the Department of Community Health website at www.dch.georgia.gov or contact GeorgiaCares, the State Health Insurance Assistance Program (SHIP), at 1-866-552-4464 Option 4. For any issues contacting insurers, the OCI website (https://oci.georgia.gov/company-search) provides a tool to independently verify insurer contact information.
