Page 64 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

46 Growing Old Without a Plan for Long Term Care is not for Sissies limit less than that amount and/or you do not have 5% compound infation protection then you may qualify for dollar for dollar asset protection. With dollar for dollar asset protection, the amount of assets protected from Medicaid spend down will equal your beneft amount when you begin collecting from your policy. For example, if you purchase a plan that has a $200,000 beneft in 2011 and 15 years later when you start receiving benefts your beneft limit has increased to $400,000, then you will be able to protect $400,000 from Medicaid spend down. If the cost of your care uses up your $400,000 beneft then you can apply to Medicaid to continue to pay for your care and still keep up to $400,000 of your assets. Only Indiana and New York state offer total asset protection, the rest of the states that have Partnership plans offer dollar for dollar protection. Most states have reciprocal agreements with the other states that allow you to qualify for Medicaid spend down asset protection on a dollar for dollar basis if you receive your care in a state other than the one you purchased your Partnership qualifed plan in. However, there are some states that do not have Partnership plans and some do not have reciprocal agreements with other states so make sure you consider this if you intend to move to another state when you retire. One important thing to know is that while the Indiana Partnership program protects assets from Medicaid spend down requirements, it does not protect income. Medicaid can require you to use part or all of your income to pay for your care before they begin paying. For more information on the Indiana Partnership for long term care, go to their website at: www.in.gov/iltcp.