Basics of Long Term Care Insurance
New York State Partnership for Long Term Care Program
In 1993, the New York State Partnership for Long Term Care was initiated in New York State in order to encourage more people to purchase long term care insurance policies. Under the Partnership program, if you purchase a Partnership-approved long term care policy and satisfy the duration requirements of your policy, you can then apply for a special Medicaid program called “Medicaid Extended Coverage”.
The type of Partnership insurance policy you select determines how much of your assets will be protected when qualifying for Medicaid Extended Coverage. There are two types of asset protection under the Partnership: Total Asset Protection and Dollar for Dollar Asset Protection.
- Total Asset Protection plans protect all of the insured's assets. There is no limit to the assets you may keep and still received Medicaid Extended Coverage. Total asset protection is offered with Partnership long term care insurance policies that provide three or more years of nursing home coverage.
- Dollar for Dollar Asset Protection plans protect the insured's assets in an amount equal to the benefits paid out by the Partnership policy. Unprotected assets are subject to Medicaid rules. Dollar for Dollar Asset Protection is available with Partnership long term care insurance policies offering less than three years of nursing home coverage.
Regardless of the asset protection offered by the Partnership policy, Medicaid rules will
still apply to certain income contributions toward the cost of care may be required.
All Partnership approved policies will prominently display the Project logo shown below.
In order to purchase a Partnership-approved long term care policy, an applicant must meet all underwriting rules of the insurance company. When benefits under the policy are nearly exhausted, an application for Medicaid must be filed by you or your representative. As long as your income is not more than the cost of your medical care, you will be eligible for all Medicaid benefits, without regard to the amount or type of your assets.
If you are considering the purchase of a Partnership long term care policy, but intend to move outside of New York, you should be aware that while the benefits under the long term care policy will still be payable, the asset protection under the Medicaid Program only applies if you are a New York State resident.
For more information on the Long Term Care Partnership Program, you should obtain a copy of the "Consumer Booklet – Affordable Financing for Long Term Care," which was prepared by the New York State Partnership for Long Term Care and is available from the Office for Long Term Care, New York State Department of Health at 1-888-NYS-PLTC (1-888-697-7582). You may also wish to visit the Partnership's official website at www.nyspltc.org.