The Washington State Long-Term Care Partnership (LTCP) Program offers an alternative way to finance long-term care expenses, including nursing home and home-based care. It safeguards your assets, allowing you to qualify for Medicaid without depleting your savings. The program helps you avoid spending down assets to qualify for Medicaid if you need assistance with at least two daily activities: bathing, continence, dressing, eating, toileting, or transferring.
How the WA State Long Term Care Program Works
The program functions through several key mechanisms to ensure comprehensive coverage and asset protection.
Medicaid Asset Protection
The WA LTCP provides dollar-for-dollar Medicaid asset protection. This means Medicaid allows you to retain assets equal to the benefits paid by your long-term care insurance policy.
For example, if your Partnership policy paid out $200,000 in benefits, you could retain $200,000 in assets and still be eligible for Medicaid, provided you meet all other requirements. This protection ensures financial security while receiving necessary care.
Inflation Protection
The program also safeguards against rising costs with inflation protection. The type of protection varies depending on your age when you purchase the policy.
If you’re under 61, your policy benefits increase with annual compounded inflation adjustments. Between 61 and 76, simple inflation increases are applied. For those over 76, policies may still offer some inflation protection. This feature ensures your benefits keep pace with the increasing cost of care.
Interstate Asset Protection
The WA LTCP protects your assets even if you move to another state. Washington participates in a national reciprocity agreement with many states.
This agreement ensures dollar-for-dollar asset protection in participating states. This means if you move from Washington to another reciprocal state, your asset protection remains intact. Similarly, individuals with Partnership policies from reciprocal states moving to Washington receive the same protection. Without a reciprocity agreement, while your long-term care policy is portable, the asset protection feature is not.
Conclusion
The Wa State Long Term Care Program offers a valuable solution for individuals planning for future long-term care needs. It provides essential asset protection, inflation adjustments, and interstate portability. By leveraging these benefits, individuals can secure their financial future while ensuring access to quality care. Contact a long-term care specialist or visit the Washington State Health Care Authority website for more information about the program.
