The Deficit Reduction Act (known as DRA), which was signed into law on February 8, 2006, is where we get the term “partnership policies.”
The intent of the law was to encourage the purchase of Long Term Care insurance to help cover the costs of long term care.
Qualified State Long Term Care partnership programs protect all, or a portion, of assets from Medicaid spend-down limits and estate recovery programs.
For example, if a Long Term Care partnership policy pays out $100,000 in Long Term Care services, an equal amount may be protected from Medicaid asset limits.
This could help protect the financial standing of a spouse, your home, or future heirs.
If you consider that 20% of today’s 65-year-olds may need five or more years of care, a partnership-qualified Long Term Care policy can really help protect their assets.
To find out more about Long Term Care planning, call us today.