care policies that qualify as Partnership Policies may be entitled to special treatment, and in particular an "Asset Disregard", under the Medicaid Program.
ASSET DISREGARD means that an amount of the policyholder's assets equal to the amount of the long term care insurance benefits received under a qualified Partnership Policy will be disregarded for the purpose of determining the insured's eligibility for Medicaid. This generally allows a person to keep assets equal to the insurance benefits received under a qualified Partnership Policy without affecting the person's eligibility for Medicaid. All other Medicaid eligibility criteria will apply and special rules may apply to persons whose home equity exceeds $500,000. Asset Disregard is NOT available under a long term care insurance policy that is not a Partnership Policy.
What are the requirements for a Partnership Policy? In order for a policy to qualify as a Partnership Polcy, it must, among other requirements:
 be issued to an individual after January 1, 2007.
cover an individual who was a Florida(or appropriate state) resident when coverage first becomes effective under the policy;
be a tax-qualified policy under Section 7702(B)(b) of the Internal Revenue code of 1986;
meet the stringent consumer protection standards; and
meet the folowing inflation requirement:
 for ages 60 or younger-provides compound annual inflation protection;
for ages 61-75-provides some level of inflation protection; and
for ages 76 and older-no purchase of inflaiton protection is required.
|
