Office Of Insurance Regulation Announces A Long-Term Care Partnership Program
TALLAHASSEE (07/27/2007) - The Florida Office of Insurance Regulation today announced the adoption of standards applicable to new and existing long-term care insurance policies under the new Long-Term Care Partnership Program, effective July 29, 2007. The intent of the plan is to encourage people to make better plans for their future long-term care needs and to improve care and coverage options for people with Medicaid and Medicare.
Florida's Long-Term Care Partnership Program is designed to encourage individuals to purchase private long-term care insurance by offering them the option to exempt some or all of their assets from Medicaid spend-down requirements. However, Partnership policyholders are still required to meet Medicaid income eligibility thresholds before they may receive Medicaid benefits.
Insurers issuing or marketing long-term care policies that qualify as Partnership policies must notify all of its policyholders with existing long-term care coverage issued on or after March 1, 2003, of the benefits associated with a Partnership policy and offer the optional exchange, along with required disclosures.
"Floridians have a new option to consider as they plan for their long-term care needs," said Florida Insurance Commissioner Kevin McCarty. "They have a private insurance option for long-term care that enables them to protect some of their assets should they ever need Medicaid's help to pay for their long-term care expenses."
Although the long-term care insurance policies qualified as the Partnership policies provide for specific consumer protection, there are many factors consumers need to consider before signing a contract. Individuals considering purchasing such policies are encouraged to seek additional information from licensed insurance agents familiar with the laws and rules governing the Partnership in Florida.