The Indiana Long Term Care Insurance Program (ILTCIP) is also known as the "Partnership." The State/Federal governments work with insurance companies and their agents to address the need for long term care services through the purchase of high quality long term care insurance policies while at the same time protecting financial assets.
Partnership policies have a unique benefit – Medicaid Asset Protection. This benefit provides financial protection for assets if an insured has to apply to Medicaid for long term care services. This is a State added benefit and does not add to the cost of the policy.
Insurance companies sell long term care policies which can be a traditional policy or a Partnership policy with asset protection. The State of Indiana does not sell long term care insurance policies.
Medicaid Asset Protection: a minimum of $1 of asset protection is earned for every $1 of benefits used under a Partnership policy. There are two types of asset protection: Total and Dollar-for-Dollar. Persons who initially purchase coverage equal to, or greater than, the State-set dollar amount in force for that calendar year may earn total asset protection upon exhaustion of the policy benefits. Those purchasing coverage less than the State-set dollar amount will earn dollar-for-dollar asset protection. When determining a person’s eligibility for Indiana Medicaid assistance, the dollar amount of asset protection would be disregarded. Assets are protected, but not income.
Benefits in a Partnership policy are portable and may be used in any state. However, to receive asset protection when applying to Medicaid, an Indiana Partnership policyholder must return to Indiana unless another state has a reciprocity agreement with Indiana. A reciprocity agreement honors another state’s Partnership Medicaid asset protection on a dollar for dollar basis.
All participating companies must have a policy available with a maximum benefit equal to one year of nursing home care with at least the minimum daily benefit. However, companies may offer any additional maximum benefit options.
All Partnership policies must include inflation protection - either 5% annual compound for total asset protection or 5% annual compound, CPI, or 5% simple (for issue ages 75 or older only) for dollar for dollar asset protection.
Partnership policyholders may take an Indiana tax deduction for premiums paid beginning with tax year 2000 (taxes filed in 2001).
