History

(IC 12-15-39.6; IC 27-8-12-7.1; 760 IAC 2-20)

HISTORY

State legislation for the Indiana Long Term Care Insurance Program (ILTCIP) referred to as Partnership was passed in 1987.  Federal approval was received in December 1991 with the first Indiana Partnership policies available for sale in May 1993.  The statute was modified in 1994 to allow a Partnership facility-only policy.  In 1997, additional legislation provided funding for the Partnership program, moved the program to the Office of Medicaid Policy and Planning (OMPP), and allowed OMPP to establish reciprocity with other states' LTC Partnership programs.  Other legislation in 1998 expanded the asset protection feature to include both dollar-for-dollar and total asset protection.  Tax legislation was passed in 1999 providing a state tax deduction for premiums paid for Partnership policies beginning with tax year 2000.

PURPOSE

The purpose of the ILTCIP is to:

• Provide incentives for the purchase of private long term care (LTC) insurance policies through a partnership between the Medicaid program and insurance companies
• Help Hoosiers plan for their LTC needs without fear of impoverishment
• Assist the State with containing the growth of Medicaid expenditures
• Increase public understanding of LTC risks, costs, and financing

FOR MORE INFORMATION

Indiana residents can call 1-866-234-4582 to request a free information packet. Or visit www.longtermcareinsurance.in.gov .

Concerns:

• Rapidly increasing Medicaid expenditures for nursing home care
• Rapidly growing elderly population in the state, especially in the number of persons age 85+, the heaviest users of long term care services
• Limited extent to which people were using private insurance to protect against the high cost of long term care
• Variability in the quality of long term care insurance policies and benefits provided under these policies
• Medicaid as the only public program providing significant financial relief to seniors that requires financial spend down to qualify

Goals:

• To stimulate the availability of high quality, affordable long term care insurance
• To provide a means by which Hoosiers could plan to finance their own long term care needs without the fear of impoverishment
• To contain the growth of Medicaid expenditures for long term care by encouraging purchase of private insurance
• To improve public understanding of long term care financing and provide counseling services to persons in planning for their long term care needs

1987 - Bi-partisan State legislation establishing the Indiana Long Term Care Insurance Program

1991 - Federal approval received in December for Indiana's Medicaid State Plan Amendment

1993 - Adoption of final rules for Program policies;  Governor Bayh held a press conference on May 17, 1993 announcing the availability of Indiana Long Term Care Insurance Program policies

1994 - Program statute was amended to allow facility-only policies

1997 - Legislation moved the Indiana Long Term Care Insurance Program to the Office of Medicaid Policy and Planning with state funding provided for the program.  (Funding for the Program until 1998 was primarily through grants from the Robert Wood Johnson Foundation)

1998 - Asset protection under the Program was expanded to include both dollar-for-dollar and total asset protection

1999 - Legislation passed providing a state tax deduction for premiums paid for Indiana Long Term Care Insurance Program policies beginning with tax year 2000

2006 - Federal Deficit Reduction Act of 2005 (DRA 2005) passed allowing additional states to implement Long Term Care Partnership Programs

2006 - The Indiana Long Term Care Insurance Program was moved to the Department of Insurance

2009 - April 1 - Indiana approved to join the National Reciprocity Compact for states with Partnership LTC programs