Since California is one of the states that offer the most expensive LTC rates in the entire country, the local government has created and implemented the California long term care Partnership program, which is one of the provisions of the Deficit Reduction Act (DRA) of 2005.
This program was created with the aim of providing the American citizens with cheaper and more budget-friendly LTC plan options so that the number of insured persons would eventually increase.
As of the moment, there are only an approximate of 25 million LTC insured individuals in the United States while almost 45 million more still need to avail their own LTC plans.
One of the reasons why the public is not too eager to purchase is because of the high monthly rates that come with this insurance policy. For them, it is just an additional financial baggage that they have to endure along with the everyday expenses that their families have.
This is why the government has teamed up with the local insurance providers in the state to help them encourage and convince the public of its importance and necessity in their lives. They agreed to offer cheaper premiums especially to those who are considered average income earners.
Partnership plans, although cheaper with regards to the premiums that they offer, have all the features that are required of all LTC plans that are sold in America. As a bonus, it even provides additional features that give their policyholders more and better policy advantages.
The California long term care partnership program has the so-called reciprocity standards that permit the insured individuals to transfer to any state that also adopts the Partnership program. They would not be obliged to purchase another policy and their plan would still be valid and authorized for use.
However, they must check first the rates of the nursing home facilities in the state where they would transfer because the prices vary. They might be moving to a state with more expensive rates, making their policy in compromise.
The partnership policies in California also have the Dollar-for-Dollar asset protection wherein the insured individuals may still be eligible and qualified for Medicaid benefits. Through this feature, the policyholder can keep a portion of his personal assets that can be disregarded by Medicaid once they apply for qualification.
But owning a Partnership policy does not mean or give the owner automatic Medicaid qualification. He must still meet the requirements and other standards in order to be eligible to receive its benefits.
Aside from these two extra features, all partnership plans also have the mandatory features that all types of LTC plan options should have namely benefit amount, benefit coverage period, and inflation protection.
The levels of inflation protection that Partnership plans offer are based on the age of the person when he actually availed his LTC plan. Higher levels are often given to those who purchased their plans at a much younger age. Usually an inflation protection based on the Consumer Price Index (CPI) is given to those who applied their policies at age 60 and below.
To inquire about the California long term care Partnership, a resident may directly contact his insurance company or ask for quotations online thru the LTC tools that private insurance companies' sites offer.
Have you been trapped in paying for care services for you or a loved one? Did you know that a ignoring the red flag could lead you to despair as health services are rising every year? Planning for long term care is the wisest decision to protect both your future health and finances, and this can be done by securing a long term care plan.
Orignal From: Features of California Long Term Care Partnership Plans
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