Florida, like many states, has instituted a program to tackle the problem of lack of Long Term Care Insurance coverage for its residents via a partnership program between private industry and the State.  Florida’s population is rapidly aging and awareness of the need for Long Term Care Insurance remains low.

This article aims to highlight Florida Partnership Requirements, unique Florida Partnership features, and provide a resource to receive competitive Florida Partnership quotes and comparisons.

  • What defines Long Term Care?
    Long Term Care Insurance covers the cost of services such as nursing homes, in-home care and assisted-living care when one is unable to care for themselves and is not covered by regular health insurance and only by Medicaid if one qualifies, which can be difficult without exhausting all of your assets.
  • Why Florida Instituted a Partnership Plan:  The Looming Problem of Long Term Care
    The Florida Long Term Care Insurance partnership program aims to encourage residents to purchase private Long Term Care Insurance.  Beyond that, Florida as a state has an incentive to offer this as the private insurers then carry the most lilkely LTC risk – the first several years.  By acting as a safety net for the outliers that need longer care periods, Florida is encouraging uptake of Long Term Care Insurance.
  • A recent study found that 7 in 10 Americans have made no plans for long-term care and many were not even aware of this type of insurance and what it covers.  And, given that the Department of Health and Human Services estimates that 2/3 of all Americans will need long-term care at some point after they pass age 65, this does, indeed, constitute a problem to be reckoned with.  Many Americans, regardless of the state in which they live, are now at risk of having to exhaust their nest egg or rely on their children or other relatives to care for them in retirement should they become unable to care for themselves.

How Florida Residents Can Participate

There are two core requirements to participate in the Florida Long Term Care Partnership Program:
Long Term Care Policy Design 
Residents of Florida are able to participate in the Florida Long Term Care Insurance Partnership Program via a number of policy options that meet certain State-mandated criteria.  Depending on your age, you will need to add an Inflation Protection rider to your policy when purchasing it.  We recommend this anyway, as a policy is only as good as the benefit at time of need which generally is way out in the future.
How Partnerships Benefit You
So, we know why the states want Partnership plans and have put these laws on the books.  What about the consumer?  Florida, like many states, aims to reward those who do their part in solving this problem of Long Term Care Insurance coverage by planning ahead and protecting themselves and their assets.  Basically, it works like this: purchasers of partnership policies are eligible for dollar-for-dollar Medicaid asset protection which means that Partnership Plans help provide you with asset protection in the event you use your policy benefits and need to seek continued benefits through Medicaid.  This enables partnership policyholders to shield their assets should they need to apply for Medicaid as normally one is required to exhaust all assets before qualifying for Medicaid’s long-term care coverage.
Highlights of the Partnership Program include:
  • Long-Term Care Partnership policies are tax qualified (a portion of premiums paid may be claimed as a tax deduction) under federal law
  • Plans provide policyholders with inflation protection
  • And most importantly, plans provide dollar-for-dollar asset protection in the event the policyholder needs to apply for long-term care Medicaid assistance.  For every dollar that a partnership policy pays out in benefits, a dollar of assets can be protected from Medicaid spend-down requirements.
What Next?
You can start planning today for your future long-term care needs and securing all that you’ve worked so hard to achieve for your retirement by purchasing a Long Term Care Insurance policy.  LTC Tree can assist you in finding a plan through the Florida Long Term Care Insurance Partnership Program that is right for you, no matter your age or financial status.  If you would like to learn more about our affordable Long Term Care Insurance policies, simply fill out our request form.  Thank you for reading today’s blog.  We really appreciate it.