Long Term CarePlanning Course

Lesson #4Complete Money Management, Inc.

Colin Meeks, Certified Financial Planner®

Maryland Partnership Plan for Long Term

Care• Many states have adopted a similar

plan• It encourages you to purchase long

term care insurance• If more people have private

insurance, the state will face less of a burden and liability when it comes to LTC Costs

How Does It Work?

• Provides dollar-for-dollar asset protection to you

• For every dollar your policy pays out, you get an equal dollar amount in asset protection under Medicaid laws

• What does it mean for you? - you are able to retain assets you would otherwise have to spend down before you could qualify for Medicaid benefits - confused yet??

In Short AND In General

• A partnership long term care policy lets you protect an amount equal to the amount the policy pays out in benefits and still qualify for Medicaid

• If your policy pays out $200,000 for your care, then rather than spend down to $2500+/- in assets to qualify for Medicaid, you could keep $200,000

Partnership Plans

• Typically Medicaid pays when you spend down and are destitute. With this, you don’t need to be destitute to receive Medicaid, even if your policy is exhausted and you still need care

• Not a bad deal - and a clear shot “over the bow” which way the tide is shifting

The Ohio Example• In 2007 the average cost of a nursing home

exceeded $60,000• A licensed Medicare certified home health aide

was nearly $52,000 per year (for 50 hours of care per week)

• Mr. Jones has a $200,000 LTC Policy. Once he uses up the benefits, he must spend down his assets to $2250 before qualifying for Medicaid

• Under Partnership rules, he could exhaust his policy, qualify for Medicaid AND protect up to $200,000 of assets

Do You Have LTC Insurance?

• Your existing policy may be eligible for a Partnership Upgrade - call me

• Don’t have a policy? This is a strong reason to look at coverage. You can buy a smaller (ie, less expensive) policy and still protect a good chunk of assets.

• Don’t stick your head in the sand, the problem is not going away

When We Meet….

• Determine if LTC insurance is suitable, affordable, and necessary

• Design a plan (4 core benefits)• Do a thorough side-by-side comparison

of the top companies• Review the special features that a

Partnership Policy must have - policies sold under this program must meet stringent insurance standards

Disclaimer

• This is a general overview of how the Partnership Program For Long Term Care Insurance works

• This is not a complete, detailed discussion

• Do not use this lesson as your sole source of information to purchase a policy, there’s a lot more to it.

Disclaimer….

• This is new legislation in Maryland (Sept 2008)

• I took an 8 hour continuing education class to get up to snuff, and I am still learning the details

• The important thing is to make sure you buy a policy that meets the requirements of the law

Summary

• Extra Credit - check out the download

• Ask Colin - send me any questions

• Take the Quiz - and send me your answers

• Schedule a Discovery Meeting

Class Dismissed

• See you next week• We’ll talk about Medicaid

This is a clear indication that you should start planning on your own. Protect what you have, you won’t be sorry