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The following is The Important Message that is sent by the
insurance
company with every new Partnership policy.
Important Message from the
Indiana Long Term Care Insurance Program |
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Please read this message now. Then, keep it with your
insurance policy.
| Medicaid Asset Protection
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Medicaid asset protection is a feature found in Indiana Long Term Care
Insurance Program insurance policies (better known as "Indiana
Partnership policies"). Medicaid asset protection allows you, the
policyholder, to keep more assets than is normally allowed when, and if, you
need help with long term care from the Indiana Medicaid program.
Only assets—not income—are protected.
There are two types of asset protection--Total and Dollar-for-Dollar.
"Total asset protection" means all of your assets will
be disregarded during the Indiana Medicaid eligibility process, should you
choose to apply for help from Indiana Medicaid.
"Dollar-for-dollar asset protection" means that you will be
allowed to retain one dollar of your assets for every one dollar of benefits
used in your Partnership policy. However, any remaining assets will be
considered (unless otherwise protected by law) during the Indiana Medicaid
eligibility process.
Whether you receive total or dollar-for-dollar asset protection depends
on:
- the amount of Partnership insurance you initially bought, and
- the amount of benefits you use under your policy.
The following steps will help you know whether you will
receive total asset protection or dollar-for-dollar asset protection from
your Indiana Partnership policy.
| STEP 1 |
Make sure you purchased an Indiana Partnership policy.
Check the front page of your policy for information that
appears as follows: |
| This policy qualifies under the Indiana Long Term
Care Insurance Program for Medicaid Asset Protection. This policy may
provide benefits in excess of the asset protection provided in the Indiana
Long Term Care Insurance Program.
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| STEP 2 |
Amount of Coverage Initially Purchased.
Turn to the schedule page in your policy. The schedule page
shows the policyholder's name, the policy's effective date, the
policy number, and the specific amount of benefits you purchased.
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- If the maximum benefit (total amount of dollars your policy will pay
out) when you first bought your Partnership policy equals or exceeds
the State-set dollar amount for the calendar year of your policy’s effective
date (see chart below), you may earn total asset protection.
- If the maximum benefit you initially purchased is less than the
State-set dollar amount for the calendar year of your policy’s effective
date (see chart below), you will earn dollar-for-dollar asset protection.
Chart for State-Set Dollar Amount*
| If the effective date of your policy is: |
The State-set dollar amount is: |
| 1998 or before |
$140,000 |
| 1999 |
$147,000 |
| 2000 |
$154,350 |
| 2001 |
$162,068 |
| 2002 |
$170,171 |
| 2003 |
$178,679 |
| 2004 |
$187,613 |
| 2005 |
$196,994 |
| 2006 |
$206,844 |
| 2007 |
$217,186 |
| 2008 |
$228,045 |
| 2009 |
$239,447 |
| 2010 |
$251,419 |
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*The State-Set Dollar Amount is the INITIAL amount of coverage an
applicant must purchase in an Indiana Partnership policy in order to earn
total asset protection.
| STEP 3 |
Policy Benefits Used. If you purchased coverage that
equals or exceeds the State-set dollar amount (see Step 2) and used
all of the coverage to which you had access, you may earn total asset
protection. |
Notes: (1) If you bought an unlimited maximum benefit, you
will earn dollar-for-dollar asset protection because you will not use
all the policy benefits due to it paying benefits as long as you need
care. (With an unlimited maximum benefit, your odds of ever needing Medicaid
assistance are reduced.) (2) A policy that begins as total asset protection
could turn into one earning dollar-for-dollar asset protection in the
following situations:
- Reduction in Benefits. If you choose to reduce your policy
benefits to an amount less than the State-set dollar amount for the calendar
year of your reduction’s effective date, you will earn dollar-for-dollar
asset protection. (If you have used policy benefits, subtract this amount
from the State-set dollar amount during your calculation.)
- Sharing Benefits. If you and your spouse purchased Partnership
coverage that allows you to share your maximum benefit (through one policy
that you both own jointly or through two individual policies with a rider
that allows you to access each other’s benefits):
- One spouse may use all of the benefits, leaving no coverage and no asset
protection for the other spouse.
- If one spouse uses benefits (but not all of them), and the amount of
remaining benefits for the second spouse is less than the State-set dollar
amount for the year when the first spouse stopped using benefits, the second
spouse will earn dollar-for-dollar asset protection. (If the second spouse
has used policy benefits, subtract this amount from the State-set dollar
amount during your calculation.)
Partnership policies not qualifying for total asset protection will
earn dollar-for-dollar asset protection.
How will you know how much asset protection you have earned?
When you are using benefits from your Indiana Partnership policy, your
insurance company will send you quarterly reports showing how much asset
protection you have earned. When you have used all of your policy
benefits, the company will send you a final Service Summary Report. You will
need the Service Summary Report if you choose to apply for Indiana Medicaid
assistance. Keep these asset protection reports with your policy.
Remember: Once you have earned asset protection, you may then do anything
you wish with your protected assets.
What happens if you use all of your Indiana Partnership
policy benefits and still need long term care services?
If you continue to need care after you have used your policy benefits,
you may choose to apply for help from Indiana Medicaid. During the
eligibility process, Indiana Medicaid will not consider from your assets an
amount equal to the amount of asset protection you have earned. By using an
Indiana Partnership policy, you have earned asset protection, not
income protection.
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| What is Indiana
Medicaid? |
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Medicaid is a federal and state-funded medical assistance program. It
pays for long term care services for persons who meet certain guidelines.
Eligibility
Eligibility for Medicaid is not automatic. You, or someone on your
behalf, must apply for Medicaid. You must be living in Indiana at the time
you apply for help from Indiana Medicaid. (See "Important News" on
the next page.) You must also meet Indiana Medicaid eligibility criteria in
effect at that time. You will need to bring your Service Summary Report with
you when you apply. This report will indicate the amount of asset protection
you have earned by using your Indiana Partnership policy.
Once You Are Eligible
Once you are eligible to receive Indiana Medicaid benefits, you must
continue to live in Indiana while receiving this assistance. The types of
services you receive under Indiana Medicaid may be different from the
services you received under your Partnership policy. You may receive more
services under Indiana Medicaid than you did under your Partnership policy
(example: coverage for prescriptions). However, there may be some services
you received under your Partnership policy which are not available under
Indiana Medicaid (example: assisted living is not currently covered under
Medicaid)>. Medicaid may require that part of your income be used toward
your care. Medicaid determines the amount of your income contribution based
upon your individual circumstances (i.e. living in your own home or a
nursing home, single or married, etc…)
- Beginning with tax year 2000, premiums paid for Indiana Partnership
policies may be deducted on your Indiana tax return. Please read your
Indiana Tax Return Instruction Booklet for more details, or consult with
your tax advisor.
- Beginning January 1, 2001, a reciprocity agreement exists between
Indiana and Connecticut Medicaid programs. This means that each of these
states’ Medicaid programs can honor the asset protection earned under the
other state’s Partnership policies. Asset protection honored under a
reciprocal agreement will be on a dollar-for-dollar basis only.
- For an application or more information on Indiana Medicaid, contact the
local Office of Family and Children in the county where
you live.
- For more information about the Indiana Long Term Care Insurance Program,
or for the State-set dollar amount for any
given year, contact the Indiana Long Term Care Insurance Program office at
317-233-4391, visit our website at
www.longtermcareinsurance.in.gov, or write to:
Indiana Department of Insurance
Indiana Long Term Care Insurance Program
311 W. Washington St., 3rd
Floor
Indianapolis, IN 46204
- For information about the particular policy you own, contact either the
insurance company listed on your policy or the insurance agent who sold you
the policy.
Thank you for purchasing an Indiana
Partnership policy!
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