Long-Term Care and Medicaid Options

Long-Term Care (LTC) and Medicaid Coverage

• Individuals with exhausted private LTC benefits often seek Medicaid to cover additional care costs.
• Protecting personal assets during the transition to Medicaid is crucial to maintaining financial stability.

Asset Protection Mechanism

• LTC Partnership: A program designed to allow individuals to protect certain assets when applying for Medicaid after using private LTC benefits.
• It enables policyholders to keep a portion of their assets if the benefits of their long-term care insurance plan are utilized.
• This approach helps avoid the forced liquidation of assets to meet Medicaid’s eligibility criteria.

Other Options Overview

• Buy-sell agreement: Typically related to business ownership transfers, not relevant to individual asset protection in LTC coverage.
• Medicare supplement: Provides additional coverage for medical costs; does not address LTC or asset protection strategies.
• Medicare SELECT: A type of Medicare supplement plan requiring the use of specific provider networks, not applicable for LTC or asset protection.

Conclusion

• For individuals needing LTC and wishing to preserve their assets while qualifying for Medicaid, the LTC Partnership is the most suitable option.