North Carolina Asset Protection News

How Medicaid Asset Protection Works

The Medicaid Asset Protection feature is designed to provide you with added coverage through the Connecticut Medicaid program, if you continue to need long-term care after your Partnership policy has paid all its benefits. It is a feature that is provided by the State of Connecticut (not the insurance companies) and is offered at no additional cost to Partnership policyholders. Medicaid Asset Protection is a lasting promise from the State of Connecticut. State law guarantees that if the Medicaid program is changed or is replaced by another program, the State of Connecticut will still provide asset protection to Partnership policyholders. In addition, the State of Connecticut cannot recover assets protected by a Partnership policy from a person's estate. Here's how it works.

You design your Partnership long-term care insurance policy according to your needs and ability to pay. You pay the insurance premiums, generally until you need the care. Once you need long-term care and you meet the benefit eligibility criteria (also known as the insured event) and deductible (elimination period) for the policy, the company will pay benefits based on the terms you selected. (By law, your premiums are waived no later than 90 days after receiving benefits.) The company will continue to pay benefits as long as you need long-term care until all obligations of the policy, usually measured in number of years or a predetermined dollar amount, are met.

When you begin receiving benefits from your policy, the insurer will send you an Asset Protection Report on a quarterly basis. This report will show how much your policy has paid in benefits and how much Medicaid Asset Protection was earned that quarter and to date. Also, at your request, or when your benefits are fully paid out, the insurer will send you a Service Summary Report that gives you an up-to-date accounting of your Asset Protection.

If you continue to need long-term care after your Partnership policy fulfills the terms of your contract, you may apply to the Connecticut Department of Social Services for Medicaid assistance. When determining your eligibility for Medicaid, the Department of Social Services will disregard (not count) any assets you have up to the amount the Partnership insurance policy has paid in benefits. The assets you are able to keep as a result of your Partnership policy are above and beyond all the regular allowances under the Medicaid program. You must still follow the other Medicaid eligibility guidelines.

You may have to spend some of your assets either for long-term care needs not covered by your insurance policy or for other financial obligations that may arise. If you deplete your assets to a level equal to what your insurance has paid, you could become eligible for Medicaid assistance before your insurance policy pays the full amount of benefits. The Asset Protection Report mentioned above will help you determine when the amount of Asset Protection earned equals the amount you have in assets. Keep in mind that it generally takes three months to process a Medicaid application.

Contact a North Carolina Asset Protection lawyer today and get a free consultation!

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