Costs of long term care vary significantly depending on the level of care a person needs and where he is located. And this is a burden for many individuals…
Costs of long term care vary significantly depending on the level of care a person needs and where he is located. And this is a burden for many individuals in some states of United States, like Texas in particular. Though most people living in Texas prefer receiving care at home, data shows families are expected to spend an average of $41,070 for a year of assistance from a home health aide.
This growing long term costs have become an ailment to many people nowadays. And most of the time, many pay through out-of-pocket and personal resources. Once all assets are depleted, that’s the only time they can actually apply for Medicaid assistance. Good thing in Texas, its Medicaid program requires an asset limit of not more than $2,000 for individuals and $3,000 for couples in order to qualify.
As an answer to this impending dilemma on LTC costs, Texas has established its own Long Term Care Partnership Program. This partnership program is an innovative collaboration of the State of Texas and private insurance companies with the aim of encouraging its residents to plan for their future long term care needs.
Texas’ partnership program is also joined by different government agencies including Texas Department of Insurance, Texas Health and Human Services Commission (HHSC), and Texas Department of Aging and Disability Services.
The Texas Department of Insurance establishes requirements that must be respected by all insurance companies who offer policies with Partnership coverage. The Texas Health and Human Services Commission (HHSC) is responsible for assessing Medicaid eligibility including asset disregard. And, Texas Department of Aging and Disability Services determines asset disregard for estate recovery.
Under the Partnership Program, qualified partnership policies are marketed by participating insurers and insurance companies. These partnership policies then offer an asset disregard benefit to policyholders. This unique feature allows them to keep assets beyond the resource limit should they apply for Medicaid assistance after depleting their insurance benefits. Also, the partnership policy will provide a dollar-for-dollar asset protection wherein every dollar paid by a Partnership policy equals a dollar of assets that will be disregarded towards eligibility to Medicaid.
In Texas, for long term care policies to be qualified, they must offer (a) asset disregard benefit, (b) inflation protection – allowing policies to keep up with increase of costs, (c) tax qualification, and, (d) disclosure statement.