The California Partnership for Long-Term Care is an innovative program of the State of California, Department of Health Care Services in cooperation with a select number of private insurance companies. It was one of the four original partnership states. However, while most have reciprocity with other states' long-term-care partnership programs, California will not.
California Partnership requires that a Care Management Provider Agency, approved by the State Department of Health Care Services and independent from the insurer, provide care coordination for Partnership policyholders. Using a collaborative process, the care manager works with the policyholder, their family and physician to complete a comprehensive assessment to determine the client’s needs and resources, and develop a detailed Plan of Care individualized to meet those needs.
Lifetime Asset Protection: This feature assures that catastrophic long-term care expenses won't reduce you to poverty even if you run out of insurance benefits. That's something other long-term care insurance policies do not offer.
Here is how this special feature works: When you need care, your California Partnership-approved private long-term care insurance policy pays for your care in the same way other high quality long-term care policies would. However, unlike a traditional non-partnership policy, each dollar your partnership policy pays out in benefits entitles you to keep a dollar of your assets if you ever need to apply for Medi-Cal services.
For most people, a partnership insurance policy will still provide benefits for the duration of the care needed. However, if care extends beyond that point, you won't have to impoverish yourself if you run out of insurance benefits. You can apply to Medi-Cal for assistance in paying the costs of your continued care and avoid having to "spend down" your savings to the poverty level. Each dollar your Partnership policy pays in benefits for your care is protected against Medi-Cal "spend down" rules.
Long-Term Care Medicaid spend down is $2000. A spouse’s minimum asset allowance is $123,600
California permits the same tax deduction as is allowed for federal income tax purposes for premiums paid for the purchase of qualified LTC insurance. The federal tax incentives also apply.
A variety of products are approved in California for Long-Term Care planning.
California Long-Term Care Costs
|Home Health Aide||Average Monthly Rate||$4,957|
|Homemaker Services||Average Monthly Rate||$4,957|
|Adult Day Care||Average Monthly Rate||$1,679|
|Assisted Living||Average Monthly Cost||$4,500|
|Skilled Nursing Home||Semi-Private Monthly||$8,365|
|Skilled Nursing Home||Private Average Monthly||$9,817|