The Indiana Partnership for Long-Term Care

The Indiana Long-Term Care Insurance Program (ILTCIP) is an innovative partnership between the State of Indiana and private long-term care insurance companies designed to offer residents a level of asset protection should they ever exhaust long-term care benefits and need to apply for Medicaid.

Indiana Partnership long-term care insurance policies offer Medicaid Asset Protection which allows the insured to keep more assets than is normally allowed when, and if, the insured needs help with long-term care from the Indiana Medicaid program.

What Makes an Indiana Partnership-Certified Policy?
Partnership-certified policies must be approved by the Indiana Department of Insurance and must include the following benefits:

• Nursing facility coverage (nursing facility only policies are acceptable);
• A minimum daily benefit of $115 for nursing home care and $55 for home care;
• Built-in inflation protection; and
• Care management

Other features of Partnership policies include:

• State-defined benefit triggers, allowing for easier comparison shopping, and
• Indiana tax deduction for premiums paid

Currently, the following private insurance carriers have policies approved for sale by the Indiana Partnership: Bankers Life and Casualty, Genworth, John Hancock, Mass Mutual, Transamerica and Thrivent Financial.

How Does the Partnership Work with Medicaid?
Medicaid is a state program that pays for health care that is not covered by Medicare, but only after the individual has spent down his or her assets to meet state and federal poverty guidelines.

Because Partnership policies include a Medicaid Asset Protection feature, owners of Partnership policies are entitled to keep assets equal to the amount paid out in policy benefits and still meet Medicaid “poverty” guidelines. Depending upon the policy purchased, the insured may be entitled to either:

• Total Asset Protection - all of the insured’s assets will be disregarded during the Indiana Medicaid eligibility process, should the insured later apply for help from Indiana Medicaid; or 
• Dollar-for-dollar Asset Protection – the insured will be allowed to retain one dollar of assets for every one dollar of benefits paid out by the Partnership policy. Any of the insured’s remaining personal assets will be considered (unless otherwise protected by law) during the Indiana Medicaid eligibility process.

Whether the insured will enjoy Total or Dollar-for-Dollar Asset Protection depends upon:

• the amount of benefits offered by the Partnership insurance initially bought, and
• the amount of benefits used under the policy.

So, for instance, if the insured purchased a Partnership policy with a maximum benefit that exceeds the Dollar Amounts on the following chart, the policyholder will receive Total Asset Protection, meaning that the insured would be able to protect all of his or her assets when applying for assistance from Indiana Medicaid. An insured with a maximum benefit below that listed in the chart would be entitled to Dollar-for-Dollar Asset Protection.

Chart for State-Set Dollar Amount

And if the insured exhausts the benefits from his or her policy and later applies for Indiana Medicaid, during the eligibility process, Indiana Medicaid will not consider from the insured’s assets an amount equal to the amount of asset protection earned.

It is essential to note that by using an Indiana Partnership policy, the insured has earned asset protection, not income protection.

Questions Regarding Reciprocity

What does this mean for Indiana Partnership policyholders?

Indiana Partnership policyholders who relocate to another state may be eligible to receive dollar for dollar asset protection if applying to that state’s Medicaid program.
The insurance policy benefits are payable in any state where you reside.  But now with Indiana participating in the Reciprocity Compact, the asset protection benefit in your Indiana Partnership policy could also be honored by other states.

Does this change my Partnership policy if I remain in Indiana?

No.  If you are applying to Indiana Medicaid, your Partnership policy could still provide either total asset or dollar for dollar asset protection depending on your policy type.  The Reciprocity Agreement provides portability for asset protection and does not change benefits or premiums with your current policy.

If my Partnership policy was effective before April 1, 2009, am I covered under this reciprocity agreement?

Yes. All Indiana Partnership policyholders, regardless of the effective date of their policy, are covered under the Reciprocity Agreement. 

What requirements have to be met to qualify for asset protection in other states?
           
Two requirements must be met:
1)  A Partnership policyholder must qualify and be approved under the other state’s Medicaid program, AND
2)  Both Indiana and the other state must be members of the Reciprocity Compact (or have a separate reciprocity agreement) at the time a policyholder applies to the other state’s Medicaid program.   The reciprocity agreement between Indiana and Connecticut remains in effect.

Does this Reciprocity Agreement guarantee that I will have asset protection with other states in the future?

No.  Indiana and another state must have reciprocity with each other at the time of Medicaid application.  States can opt in and out of the reciprocity agreement with 60 days notice.  If a state opts out of Reciprocity, individuals who have already accessed Medicaid would be grandfathered.  If Indiana’s long term care program would be discontinued, an Indiana resident who purchased a Partnership policy prior to the date the program was discontinued, would still be eligible to receive earned asset protection under Indiana’s Medicaid program.

How can I find a list of states participating in the National Reciprocity Compact Agreement?

Click here: http://www.nyspltc.org/docs/recipmap.pdf or call the Indiana Partnership office, toll free 1-866-234-4582 or 317-232-2187.

Source: http://www.in.gov/iltcp/

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