(reposted here by request)For those that have not heard of the Partnership program, it is where your state decides to provide incentive to buy LTC coverage. The states want you to plan smartly for retirement in much the same way they want you to save smartly for college education so they do so by providing financial incentives to those that buy coverage.In the case of LTC, the states want you to have some coverage so it is less likely you will every use Medicaid.They do this by protecting your assets based on the amount of coverage you purchase.http://www.in.gov/iltcp/files/What_You_Should_Know_7-2011.pd...How does the Medicaid Asset Protection feature work?If you initially purchase a Partnership policy with less than the State-set dollaramount* in benefits, one dollar of assets (dollar-for-dollar) is protected foreach dollar of Partnership policy benefits paid out. If you initially purchasea Partnership policy with at least the State-set dollar amount* and have a 5%compound inflation factor, all of your assets (total asset) are protected oncethe policy has paid out all benefits.*Chart for State-set dollar amounts is posted on the website and in the back of this booklet.Can I rely on this asset protection from Medicaid to protect myassets?In a word, YES! For example, if you bought a Partnership policy with amaximum benefit pay-out of $150,800, you could protect $150,800 of yourassets. If you want to protect more or less of your assets, you may select apolicy with a higher or lower benefit pay-out. If you want to protect allof your assets, you would need to purchase, at a minimum, the State-setdollar amount of Partnership policy benefits. For married couples, eachspouse would need to purchase his/her own policy for the greatest overallprotection.----------You don't pay anything extra for this huge benefit.For Indiana:¦2013 Indiana Partnership LTC Policy Requirements ¦Minimum Daily Benefit - $115 per Day ¦Total Asset Policy - Initial Policy Amount at least $291,050So for the price of a $291k policy, you could protect millions from Medicaid spendown requirements.Premiums are also tax deductible.All it would take is for one spouse to require care for a year or two to completely wipe out the savings for many if not most retirees. Even if that spouse dies, it would leaving the remaining spouse with little to no life savings. State links:http://w2.dehpg.net/LTCPartnership/
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