Pennsylvania Long-Term Care Insurance Partnership Program Offers Unique Asset Protection
About This Article
In Pennsylvania, several options exist protecting income and assets from future long-term health care costs. Partnership LTC Insurance offers dollar-for-dollar asset protection.
James Kelly
LTC News author focusing on long-term care and aging.
Despite all the talk about long-term health care, many people are unaware that 45 states participate in the Long-Term Care Insurance Partnership Program. Pennsylvania is one of those forty-five.
The purpose of the Pennsylvania Long-Term Care Insurance Partnership Program is to allow consumers to purchase smaller but comprehensive benefits and make them even more meaningful.
They are made more meaningful by linking these special insurance policies (called Partnership qualified policies) with Medicaid for those who continue to require care if they exhaust all the benefits from their policy.
More Flexibility With Asset Protection
Insurance Commissioner Teresa Miller announced a change in guidance several years ago, allowing greater flexibility in federally-required inflation protection for long-term care partnership policies. This flexibility means more consumer choice for Pennsylvanians and should enable insurers to mitigate or even eliminate premium increases for these policies.
“I believe this change will offer greater consumer choice while still making sure all long-term care partnership policies provide needed protection for our citizens,” Commissioner Miller said in announcing the change.
“Insurers have supported this step as one way they could lower, and in some cases, even eliminate proposed premium increases for consumers,” Miller said.
Read more information from the Pennsylvania Insurance Department (click here).
45 States Have Partnership Plans Available
The Pennsylvania Long-Term Care Partnership Program is part of a joint federal-state policy initiative to add even greater value and protections when consumers purchase Long-Term Care Insurance as part of their future retirement plan.
When a consumer adds affordable LTC insurance that is Partnership certified, they obtain additional “dollar-for-dollar” asset protection or what is referred to as asset disregard. If a person exhausted all the money in their policy, they get to shelter part of their estate based on the total amount of benefits paid out in benefits. This would allow a person to access Medicaid benefits without having little or no income and assets.
A successful retirement should include an advance plan to address the financial costs and burdens of aging. As consumers purchase these affordable partnership plans, they can protect their 401(k) IRA 403(b) and ease the burden that extended care otherwise places on the family.
Long-Term Health Care Costs are Expensive
Often, without any planning, adult children get thrust into the role of being a caregiver. The role of caregiver is demanding and emotionally draining. According to the LTC NEWS Cost of Care Calculator, paid care services are costly and can run over $100,000 for a facility, less for in-home care.
Experts say to start investigating insurance options in your 40s or 50s when you still have reasonably good health, and premiums are at their lowest. Be sure to seek the help of an experienced and qualified specialist who is certified with the partnership program and works with the top companies. Often, this is not a financial advisor or general insurance agent.