Indiana Long Term Care Insurance Program - "The Partnership"
www.longtermcareinsurance.in.gov
The Indiana Partnership Program was developed to provide an incentive to Indiana residents to encourage them to consider the purchase of long term care insurance to plan for their future long term care needs. Ideally, an individual who purchases any LTC policy would have obtained coverage sufficient to meet future care needs. The Partnership acts as a back-up security for the worse-case scenario if, in fact, selected policy benefits are not adequate.
From “Quick Facts” in the Partnership website:
“The Indiana Long Term Care Insurance Program (ILTCIP) is also known as the “Partnership”. The State/Federal governments work with insurance companies and their agents to address the need for long term care services through the purchase of high quality long term care insurance policies while at the same time protecting financial assets.
“Partnership policies have a unique benefit – Medicaid Asset Protection. This benefit provides financial protection for assets if an insured has to apply to Medicaid for long term care services. This is a state-added benefit and does not add to the cost of the policy.
“Medicaid Asset Protection: a minimum of $1 of asset protection is earned for every $1 used under a Partnership policy. There are two types of asset protection: Total and Dollar-for-Dollar. Persons who initially purchase coverage equal to, or greater than, the State-set dollar amount in force for that calendar year may earn total asset protection upon exhaustion of the policy benefits. Those purchasing coverage less than the State-set dollar amount will earn dollar-for-dollar asset protection. When determining a person’s eligibility for Indiana Medicaid assistance, the dollar amount of asset protection would be disregarded. Assets are protected, not income.”
[LTCA: However, income-producing assets may be protected by a Partnership policy and then given to any person or entity that the policyholder chooses. Whoever owns the asset also owns the income.]