Oregon implemented the Long Term Care Partnership Program effective January 1, 2008. Prior to the Partnership Program, families had to spend their life savings to pay for a family member requiring long term care before qualifying for Medicaid, impoverishing the remaining spouse or family. The Partnership Program protects the assets of long term care policyholders equal to the benefit dollars received. Let’s look at an example:

You purchase a three year long term care insurance policy with a total benefit value of $150,000 and 5% compound inflation protection at age 60. At age 75, you have a stroke and need care. You utilize the benefits of the policy for your care, which has grown to $300,000 due to the inflation protection. As you need more care, you can protect an additional $300,000 of your assets and still qualify for Medicaid benefits because of the Partnership Program, as long as you meet the Medicaid income and other requirements. Under the “Granny law”, you can continue receiving care from your chosen care provider as long as they accept Medicaid.

This means that your spouse or family can retain the $300,000 in assets you protected by purchasing the policy, as well as $300,000 worth of benefits that you received from your policy. That is a total benefit to you and your family of $600,000.

The state has several requirements for policy plan design that must be followed to qualify as a Partnership Policy.

• The insurance company must submit their policy to the state for approval as a Partnership Policy
• The policy must be a tax-qualified plan, which requires that a medical professional must certify that you will need care for a minimum of 90 days to receive benefits
• * Must contain the following required inflation protection:
  Age 18 – 60: 3% or 5% compound inflation
  Age 61 – 75: Must include some type of inflation benefit, but it need not be compound annual inflation
  Age 76 and older: No inflation required, but inflation can be chosen

An Insurance broker, specializing in long term care can design an appropriate Partnership policy to meet your need, whether for an individual, family or business.

Article Provided by
Diane Leveton, a licensed insurance broker affiliated with Genworth Financial in Portland, Oregon.
Diane is available as a speaker for community groups, business or professional organizations concerned about senior issues.