New Asset Protection for LTC
by Trish Sneddon, CSA, CLTC

By 2020 one in four Pennsylvanians will be age 60 or older, and an estimated 60 percent of us will need help with health and personal care needs as we grow older, according to a recent informational mailing from Governor Rendell. Starting your planning process early and learning about your options now is vital to maximizing your future care choices.

The Long-term Care Partnership Act
The state has recognized the potential future strain on its Medical Assistance resources as a result of all the aging boomers. Medical Assistance is meant to be a safety net for those who have long-term health care needs, but only for the truly needy.

In an effort to avert some of that strain, the Governor signed Act 40, the “Long-term Care Partnership Act,” on July 17, 2007. This law provides incentives for us to use Long-term Care Insurance to shelter additional savings from Medical Assistance spend-down. The vision is to have private insurance take some of the pressure off of the state’s burden to pay for care. It should be a win-win for both the state and its citizens.

Exchange Your Long-term Care Policy
Anyone who has purchased a long-term care policy that meets certain minimum benefit requirements since February 8, 2006, will be able to exchange their policies for a Partnership Plan, once it becomes available. The new Long-term Care Insurance Partnership Qualified Policies (PQ) should be available by summer or early fall 2008.

These plans have specific consumer protection requirements, such as inflation benefit increases. In addition, agents must have special training to sell these policies.

For more information about ways to plan for long-term care, including details on the new Partnership Qualified Policies, contact FIFS at 267-384-5300.

FIFS Connection, Summer 2008, Vol.5, No. 2