Wednesday, May 1, 2019

Many Consumers Unaware of Special Partnership Long-Term Care Plans




The presidential campaigns have started in full force. With many candidates talking about single payer health programs the question about how that might impact long-term care is coming up. Too many people are unaware of a unique program available right now in most states.

The Federal/State Long-Term Care Partnership Program does not get the attention it deserves. Most Americans are unaware this government partnership program is available in most states. It provides American families with additional “dollar-for-dollar" asset protection from the tremendously high costs of long-term care services and supports. Since so many American families are impacted by the financial costs and burdens of aging, planning for long-term care is essential in preserving assets so American families can enjoy a future successful retirement.

Recently I was speaking in Phoenix about the need for long-term care planning. Longevity has become a huge issue. Many presidential candidates are talking about government control of health care in the United States. Some even suggest long-term care should be part of it. This will not happen but there is a government program many people are unaware of what will benefit many American families that don’t want to place the burden of caregiving on their children or risk draining their assets on paid caregivers.

The Long-Term Care Partnership Program provides many Americans outstanding benefits as they plan their future retirements. This is on top of the benefits these policies already provide. In 2018 alone the major insurance companies paid over $10.3 billion in Long-Term Care Insurance benefits. In addition, many policies provide case management which help families develop appropriate plans of care and find good providers which meet their needs.


Most states participate. These special Long-Term Care Insurance policies are providing consumers additional dollar-for-dollar asset protection when they purchase a qualified Long-Term Care Insurance policy. The program is a joint federal-state program which allows a person to shelter part of their estate equal to the amount their Long-Term Care policy paid in benefits and still qualify for Medicaid's long-term care benefit.  Normally, a person must have little or no assets in order to access the Medicaid long-term care benefit.

This is really a game changer for the middle class and the upper middle class. It gives you the peace-of-mind knowing you will always have access to your choice of quality long-term care services and supports without risking your life savings. Since these policies are custom designed, you can purchase a smaller plan protecting all or a large portion of your savings at a very affordable price.

The Obama administration toyed with the idea of long-term care when they put together their "Obamacare" program. However, administration actuaries at the Department of Health and Human Services urged the White House to drop the idea because of cost and the White House heeded the advice.

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