LONG-TERM CARE PARTNERSHIP PROGRAM
Most people do not like to think about the fact that they may one day need long-term care services. Most people are also surprised at the costs of long-term care and do not think of having to use their entire life savings to pay for those needs and services.
The reality is that about two-thirds of all Americans will likely need some type of supportive services after age 65. Approximately 40 percent of those 65 and older will eventually need long-term care in a nursing home or assisted living facility for a stay of over two years. Many elderly individuals believe their long-term costs will be covered by Medicare; the truth is that Medicare does not cover most long-term care.
This public-private partnership creates an innovative program offering individuals quality, affordable long-term care insurance and a way to receive needed care without depleting all their assets.
Benefits of the Partnership Program
- Partnership policies are tax qualified plans under federal law and provide inflation protection benefits for purchasers.
- The South Dakota Long-Term Care Partnership Program provides an alternative to spending down or transferring assets by forming a partnership between Medicaid and private long-term care insurers.
- Once private insurance benefits are used, special Medicaid eligibility rules are applied if additional coverage is necessary.