A long-term care insurance policy can offer a great deal of comfort and security for you and your family. But, the future is unpredictable. There’s no way to know if you’ve purchased enough coverage. What if your policy runs out and you need even more long-term care services? If you have to apply for Medicaid to cover these costs, you will likely have to “spend down” your savings and other resources to qualify.
Having a Texas Long-Term Care Partnership-qualified policy can help preserve some of the financial security you worked your whole life to build. That’s because for every dollar that a Partnership-qualified policy pays out in benefits, a dollar of your financial resources will be set aside when determining if you qualify for Medicaid.
For example, assume you purchase a Partnership-qualified insurance policy that will pay up to $50,000 in benefits, and you receive your maximum benefit. If you later need to apply for Medicaid, $50,000 of your countable resources will be set aside when determining your eligibility. And, if you receive long-term care services through Medicaid, the state will not attempt to recover this $50,000 in protected resources from your estate.
It’s important to note that buying a Partnership-qualified policy does not automatically qualify you for Medicaid should you need long-term care services once your policy runs out. It does, however, allow you to keep a portion of your resources, even as you are considered for Medicaid coverage.
This dollar-for-dollar resource protection feature is only available with Partnership-qualified long-term care insurance policies. To ensure your policy has resource protection, look for the disclosure statement identifying the policy as a Texas Long-Term Care Partnership-qualified policy.