Partnership policies protect assets
This type of long-term care policy lets you protect more of your assets (money in the bank, investments, a house) if you require long-term care, run out of money, and need to apply for Medicaid.
These policies must meet minimum benefit requirements of state and federal governments. For example, policies purchased at certain ages must offer some inflation protection so that the amount your policy pays increases as the cost of care grows.
Even with a long-term care policy, some people eventually have to apply for Medicaid to help them pay for their care. Each dollar the policy pays for your care is a dollar that the state can't later claim from your estate if you qualify for Medicaid. Generally, people on medicare may qualify for Medicaid when they have assets of $2,000 or less.
Example: Your long-term care partnership policy paid $50,000 for your care before you applied for Medicaid. You would get to keep both $2,000 and $50,000 and still be eligible for Medicaid. Medicaid would collect $50,000 less from your estate, if that amount is still in your estate when you die.
A partnership policy does not automatically make you eligible for Medicaid. All other Medicaid criteria will still apply, including home equity limits that may make you ineligible for Medicaid. Contact the Oregon Department of Human Services if you have Medicaid eligibility questions.
A partnership policy must meet state and federal requirements. If you purchase a policy and then make changes later, confirm with your insurance agent that the changes will not affect the status of your plan. If you move out of Oregon, a partnership plan may protect assets for Medicaid in another state, but only if that state recognizes your policy as a partnership policy under its federally approved partnership program.