Taking Advantage of Partnership Long Term Care Plans

In order to address the increasing demand and need for long term care insurance, the government, together with private insurance providers, has initiated and implemented an initiative known as the Partnership long term care insurance (LTCI). What exactly is this?

Partnership LTCI is a government program in accordance to the Deficit Reduction Act of (DRA) of 2005 which was ratified in 2006. The provisions of this law affect various facets of health and insurance-related programs, including the benefits people get from Medicaid and Medicare. DRA also mandates all the states in the country to come up with cost-effective alternatives that will meet the financial capabilities of the Americans when it comes to long term care.

By having partnership with private insurers, the government hopes to make long term care plans much more affordable, allowing more people to afford them. It is also some kind of a vehicle through which states can encourage consumers to take responsibility for their own long-term care needs and costs. In this way, the government will be able to reduce the pressure on the budgets of state-funded Medicaid.

Despite being cheaper, Partnership LTCI provides similar benefits as that of private long term care insurance. Likewise, a policyholder must be able to get three mandatory features, which include:

(1) minimum daily benefit amount
(2) inflation protection
3) benefit coverage period

Among these three features, the inflation protection is considered to be the most essential factor. This is because inflation protection will adjust a plan’s actual value based on the current costs of LTC services.

The younger you buy a long term care policy, the better your chances of getting higher levels of inflation protection.

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