Long Term Care Partnership
Many believe that private long term care partnership can and should play a more significant role in the financing of home care and nursing home services. The Partnership program states that the promotion of private LTC insurance is possible when consumers would be given the option of Medicaid facilities and LTC coverage under the prescribed rules. Expenditures on nursing home care make up the largest part of long term care partnership costs in the United States. History of the long term care partnership and future reliance on Medicaid to cover long-term-care needs.
Four states-California, Connecticut, Indiana and New York-implemented Partnership programs in the early 1990s. Asset protection and long term care partnership were the two models used by the demonstration states. Around 172,000 consumers were the part of policies of active partnership in 2005. Under the DRA all states can implement LTC Partnership programs through an approved State Plan Amendment, if specific requirements are met. Do long term care partnership programs actually save money is an ongoing debate. The successful implementation of Partnership programs requires the input and effort of a variety of stakeholders-state policy-makers, private industry and consumers.
The Medicaid agency, Governor Office, state budget office, state unit on aging, state legislature, and the Office of Insurance should all provide input on the design of the program. The insurance industry plays a key role in underwriting Partnership policies.
Target Population and State Budget Impact The success of long term care partnership programs in reducing state long-term-care expenditures depend on the ability of the program to encourage people with moderate incomes, who would otherwise rely on Medicaid for potential LTC needs, to purchase private insurance. Consumer and Agent Education Given the complexity of the long term care partnership and insurance choices, and the added intricacy of Partnership programs, many people feel strongly that robust consumer education and insurance agent training should be built into new state Partnership programs. These various partnership programs (long term care) must include specific consumer protection requirements of the 2000 NAIC (National Association of Insurance Commissioners) LTC Insurance Model Act and Regulation. State insurance departments are responsible for ensuring that individuals who sell Partnership policies (insurance agents) are adequately trained and can demonstrate understanding of how such policies relate to other public and private options for long-term-care coverage. Consumer and insurance agent education are closely aligned. Consumers should also be aware that, although a partnership policy may cover home-based care, Medicaid coverage may (depending on the state) only entitle them to care in a nursing facility. The DRA specifies that all individuals who sell a long term care insurance policy under the long term care partnership receives training and demonstrates evidence of understanding of such policies and how they relate to other public and private coverage of long-term care.
| 