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Iowa Launches New Long-Term Care Insurance Partnership Program

As of January 1, 2010, Iowa law allows long-term care insurance companies to sell “Partnership” plans. The “Partnership” is between insurance companies and the state Medicaid program. According to Kris Gross from the State of Iowa’s Senior Health Insurance Information Program (SHIIP), “People who purchase Long-Term Care Partnership policies may be able to qualify for Medicaid before spending all of their assets.”

The Medicaid asset protection feature provides dollar-for-dollar asset protection. Each dollar that your Partnership policy pays out in benefits entitles you to keep a dollar of your assets if you ever need to apply for Iowa Medicaid long-term care services. Protected assets are not considered in determining Medicaid eligibility.

For example, if your Partnership policy paid $200,000, Iowa’s Medicaid program would allow you to keep $200,000 in assets and still qualify for Medicaid assistance. The amount of assets you are able to protect under the Partnership is in addition to the $2,000 Medicaid allows you, as an individual, to keep. Additionally, this amount will not be used in any calculation for asset recovery by the state upon your death.

Purchasing a Partnership plan does not mean you automatically qualify for Medicaid once the insurance benefits are used up. Your income must also fall below the eligibility level for Medicaid benefits.

Partnership policies must be tax-qualified and offer certain minimum protections regarding inflation protection. These protections can vary based on your age when you buy the coverage. You may be able to exchange your current long-term care policy for a Partnership policy. Contact your current insurer to see if you qualify for an exchange. As with any other insurance, make sure it fits your budget and your needs before purchasing.

SHIIP has two consumer guides to assist you — The Iowa Long-Term Care Partnership Program Consumer Guide and the Iowa Guide to Long-Term Care Insurance. Call 1-800-351-4664 (TTY 800-735-2942) or go to www.therightcalliowa.gov to request or view the guides. Local SHIIP counselors can also answer your questions. Call the toll-free number above or go to the SHIIP website to find the counselor nearest you. SHIIP is a service of the State of Iowa Insurance Division. All services are free, confidential and objective.

*Q & A*

*Iowa Launches New Long-Term Care Insurance Partnership Program*

*Q.* My insurance agent has mentioned a new “Partnership Program.” What is it?*

*A.* As of January 1, 2010, Iowa law allows long-term care insurance companies to sell “Partnership” plans. The “Partnership” is between insurance companies and the state Medicaid program. According to Kris Gross from the State of Iowa’s Senior Health Insurance Information Program (SHIIP), “People who purchase Long-Term Care Partnership policies may be able to qualify for Medicaid before spending all of their assets.” **

*Q. * How do these policies help me qualify for Medicaid long-term care benefits?

*A.* The Medicaid asset protection feature provides dollar-for-dollar asset protection. Each dollar that your Partnership policy pays out in benefits entitles you to keep a dollar of your assets if you ever need to apply for Iowa Medicaid long-term care services. Protected assets are not considered in determining Medicaid eligibility.

For example, if your Partnership policy paid $200,000, Iowa’s Medicaid program would allow you to keep $200,000 in assets and still qualify for Medicaid assistance. The amount of assets you are able to protect under the Partnership is in addition to the $2,000 Medicaid allows you, as an individual, to keep. Additionally, this amount will not be used in any
calculation for asset recovery by the state upon your death.

Purchasing a Partnership plan does* not* mean you automatically qualify for Medicaid once the insurance benefits are used up. Your income must also fall below the eligibility level for Medicaid benefits.

*Q. * Where can I get more information about the Long-Term Care Insurance Partnership Program?*

*A.* SHIIP has two consumer guides to assist you—*The Iowa Long-Term Care Partnership Program Consumer Guide *and the *Iowa Guide to Long-Term Care Insurance. *Call 1-800-351-4664 (TTY 800-735-2942) or go to www.therightcalliowa.gov to request or view the guides. Local SHIIP counselors can also answer your questions. Call the toll-free number above or go to the SHIIP website to find the counselor nearest you. SHIIP is a service of the State of Iowa Insurance Division. All services are free, confidential and objective.