New Jersey Long Term Care Partnership Program: The Basics

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Looking for alternatives to expensive long term care insurance policies? Residents of New Jersey have the option to look into New Jersey Long Term Care Partnership Program. This program is a joint offering from the state government and private insurance companies and hopes to encourage residents to buy private coverage by giving more affordable premium rates and an added benefit not found in traditional LTC policies. New Jersey partnership for long term care has what’s call the Medicaid asset protection plan. People who buy a New Jersey long term care partnership policy are entitled to apply for Medicaid benefits without having to spend themselves to poverty first. In regular circumstances, a person who wants to apply for Medicaid must first fulfill the income requirement of the program, which states that the applicant must not have more than $2,000 in total savings and assets. With the partnership policies, residents who undergo long periods of care or even lifetime care and use up all the cash benefits of their partnership policy could then apply for Medicaid and still keep their savings to themselves for other purposes. Medicaid will exempt the same amount as the total paid benefits of the person’s partnership policy. That amount will be what the insured can keep in his savings and assets. Besides the Medicaid asset protection feature, New Jersey partnership for long term care policies also offer reciprocity features. This means that the insured can use his partnership policy in another state. This feature comes in handy when you consider the reality that there are some patients who move into a new state during their long term care event either to be reunited with family or be around family members or to save up on their expenses. This is because some states have less expensive rates for long term care services. When buying a partnership policy, be sure to only get it through certified carriers. Each state must first authorize an insurance company before it could start offering partnership policies in the area. Be sure to check an updated list of authorized insurance carriers in New Jersey before doing any sort of transaction with any insurance company for Partnership plans. To find out more about how you can apply for a partnership policy and learn about other options for long term care insurance, you can go visit your local/state Department of Insurance or official state website. You can also read about partnership policies in your specific state on this site