“Purchasing a Partnership-qualified (PQ) long term care insurance policy provides an added benefit. This benefit is described as “dollar-for-dollar” asset disregard or “spend down” protection. Individuals who purchase a PQ policy 'earn' one dollar of Medicaid asset disregard for every dollar of insurance coverage paid on their behalf. Here's an example. Stephanie buys a PQ policy and needs care one day. Her policy pays out $150,000 of insurance claim benefits. Stephanie earns a Medicaid asset disregard that allows her to keep an additional $150,000 over the asset level she would otherwise have to meet in order to be eligible for Medicaid coverage. The Partnership Program also protects those assets after death from Medicaid estate recovery.”
My Mom had a partnership policy and used it for part time in home care for several years. I believe the policy made it much easier for to accept the caregivers since they were already paid for (after the deductible period). She did not run out of benefits before her passing and never needed Medicaid.
Her policy limit exceeded the value of her home when she purchased it, but the home appreciated much more than the inflation amount included with the policy so it would not have been fully protected if Medicaid had paid for enough years.
Unfortunately, many people feel they cannot afford this kind of insurance or find out they no longer qualify when they feel they are ready to buy it.
I think your last sentence sort of sums up most Long Term Care Insurance. It is expensive and when you do want to buy or can afford it you do not qualify.
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“Purchasing a Partnership-qualified (PQ) long term care insurance policy provides an added benefit. This benefit is described as “dollar-for-dollar” asset disregard or “spend down” protection. Individuals who purchase a PQ policy 'earn' one dollar of Medicaid asset disregard for every dollar of insurance coverage paid on their behalf.
Here's an example. Stephanie buys a PQ policy and needs care one day. Her policy pays out $150,000 of insurance claim benefits. Stephanie earns a Medicaid asset disregard that allows her to keep an additional $150,000 over the asset level she would otherwise have to meet in order to be eligible for Medicaid coverage. The Partnership Program also protects those assets after death from Medicaid estate recovery.”
https://www.aaltci.org/long-term-care-insurance/learning-center/long-term-care-insurance-partnership-plans.php
My Mom had a partnership policy and used it for part time in home care for several years. I believe the policy made it much easier for to accept the caregivers since they were already paid for (after the deductible period). She did not run out of benefits before her passing and never needed Medicaid.
Her policy limit exceeded the value of her home when she purchased it, but the home appreciated much more than the inflation amount included with the policy so it would not have been fully protected if Medicaid had paid for enough years.
Unfortunately, many people feel they cannot afford this kind of insurance or find out they no longer qualify when they feel they are ready to buy it.
It is expensive and when you do want to buy or can afford it you do not qualify.