Texas LTC Partnership
Long Term Care costs vary significantly depending on the level of care needed and where you are located.
Shown Below is a table of median care costs in different settings in certain Metro areas in Texas, according to a 2010 study conducted by Genworth Financial.
(Download an Interactive Map
Program For Client Use)
To pay these expenses many families are forced to
deplete their savings and then apply for government assistance through Medicaid.
The Texas Medicaid program requires an asset limit of not more than
$2,000 for individuals and $3,000 for couples in order qualify.
What are the
chances that anyone will actually need to pay
for long term care expenses? The Brookings
Institute says that the average 65 year old
person has a 20% chance of having no long term
care expenses during their lifetime. The
remaining 80% will have some long term
58% chance of $50,000
9% chance of
13% chance of
$100,000 or more!
The Texas Long Term Care Partnership Program
The Texas Long Term Care Partnership is a joint program of the State of Texas and private insurance companies that aims to encourage Texas residents to plan for their future
Long Term Care needs. The program is participated by various government agencies. The Texas Department of Insurance establishes requirements that must be met by all insurance companies who offer policies with Partnership coverage.
How Does It Work?
- To participate a client must buy and
maintain a federally tax-qualified LTCI policy that meets
- The LTCI policy is the primary provider
of long-term care benefits.
- If the need for care continues to the
point where the benefits under the LTCI policy are exhausted,
the client may then apply for benefits under Medicaid.
- Medicaid eligibility (including asset
disregard) is under a case-by-case assessment by the Texas Health and Human Services Commission (HHSC) while asset disregard for estate recovery is determined by the Texas Department of Aging and Disability Services.
- Typically, for every dollar of benefit
received under the LTCI policy, one dollar of assets is
protected from the spend down rules of regular Medicaid
- Long-term care insurance policies from
Genworth and other companies we represent meet the definition of
federally tax-qualified long-term care insurance plans in the
states where they are sold.
Steve Gresso for more
to market the Partnership LTC
Policies must take a certification
course and future continuing
education courses. This
requirement is not grandfathered and
must be taken without regard to
years of experience.