Oregon’s Long-Term Care Qualified Partnership Program
What are partnership policies?
This is a new type of long-term care policy that lets you protect more of your assets (money in the bank, investments, a house) if you require long-term care, run out of money and need to apply for Medicaid. These policies have been sold in Oregon since January of 2008.
Are all long-term care policies qualified partnership policies?
No. These policies must meet minimum benefit requirements of state and federal governments. For example, policies purchased at certain ages must offer some inflation protection so that the amount your policy pays increases as the cost of care grows.
What is special about a partnership plan?
Even with a long-term care policy, some people eventually have to apply for Medicaid to help them pay for their care. Each dollar the policy pays for your care is a dollar that the state can't later claim from your estate if you qualify for Medicaid. Generally, people qualify for Medicaid when they have assets of $2,000 or less.
Example: Your long-term care partnership policy paid $50,000 for your care before you applied for Medicaid. You would get to keep both $2,000 and $50,000 and still be eligible for Medicaid. Medicaid would collect $50,000 less from your estate, if that amount is still in your estate when you die.
A partnership policy does not automatically make you eligible for Medicaid. All other Medicaid criteria will still apply, including home equity limits that may make you ineligible for Medicaid. Contact the Oregon Department of Human Services if you have Medicaid eligibility questions. Call 1-800-282-8096 or visit: http://www.oregon.gov/DHS/spwpd/ltc/main.shtml#funding
Does the status of a policy ever change?
A partnership policy must meet state and federal requirements. If you purchase a policy and then make changes later, confirm with your insurance agent that the changes will not affect the status of your plan. If you move out of Oregon, a partnership plan may protect assets for Medicaid in another state, but only if that state recognizes your policy as a partnership policy under its federally approved partnership program.
How do I make sure I get a partnership plan and not just a regular long-term care insurance policy?
Let your insurance agent know that you want a partnership policy. Your insurance company will provide a written verification that your policy is a partnership policy when you receive it.
Who sells partnership plans in Oregon?
The Oregon Insurance Division posts a list of companies authorized to sell partnership policies, which is updated periodically. This list is at: http://insurance.oregon.gov/consumer/long-term-care/ltc-insurers-list.html
Where can I get more information on long-term care in general?
- You may want to seek assistance from a health insurance agent. Agents who sell partnership policies are required to receive specialized training in long-term care insurance, including in partnership policies.
- This government Web site provides information on understanding, planning and paying for long-term care: www.longtermcare.gov
- The Oregon Insurance Division has several publications that discuss long-term care: http://insurance.oregon.gov/consumer/long-term-care/long-term-care-info.html
- The Insurance Division's consumer advocates are available at no charge to answer your questions: 503-947-7984, 1-888-877-4894, email@example.com