Long term care without liquidating assets

07-Sep-2016 17:34 by 7 Comments

Long term care without liquidating assets

Thirty states have filial laws that that give the state the right to require your children to reimburse Medi-Cal for your expenses.Let's say John purchases a California Partnership for Long-Term Care policy with a value of $300,000.

Yet, many of the 78 million Baby Boomers who are fast heading into retirement have not planned for their future long-term care.

With the Deficit Reduction Act of 2005, the federal government sent a clear message to Americans — paying for long-term care is your responsibility. The Deficit Reduction Act made it more difficult to qualify for Medi-Cal (Medicaid) paid long-term care.

It also expanded the Partnership Program to other states.

If you already have a policy and do not know if it is Partnership read this: Is my policy Partnership?

A California Partnership for Long-Term Care qualified policy provides you, as the purchaser, with the right to apply for Medi-Cal (Medicaid) under modified eligibility rules that include a special feature called an 'asset disregard'.

Because, at least 70 percent of people over age 65 will require some long-term care services at some point in their lives.

And, contrary to what many people believe, Medicare and health insurance do not pay for the long-term care services that most people need.Since these policies must include inflation protection, the amount of the benefits you receive can be higher than the amount of insurance protection you originally purchased.If you have a Partnership-qualified long term care insurance policy and receive 0,000 in benefits, you can apply for Medi-Cal (Medicaid) and, if eligible, retain 0,000 worth of assets over and above the State’s Medi-Cal (Medicaid) asset threshold.For each dollar of benefits paid, one dollar of assets is not counted toward the eligibility limit.This means you get to keep those assets and don't have to spend them before qualifying for Medi-Cal.The new law made it more difficult to qualify for Medi-Cal (Medicaid) paid long-term care.