Approximately 40 percent of the 65-and-over population will eventually need long-term care, with an average stay of 2.5 years at a cost ranging from $30,000-$65,000 annually. And although many elderly Americans still believe that their long-term costs will be covered by Medicare, the truth is that only after spending down to impoverishment will they receive public support through Medicaid.

The Partnership for Long-Term Care provides an alternative to spending down or transferring assets by forming a partnership between Medicaid and private long term care insurers. Participating states work with insurers to create insurance policies that are more affordable and provide better protection against impoverishment than those commonly offered. Once private insurance benefits are exhausted, special Medicaid eligibility rules are applied if additional coverage is necessary.

The authority for instituting the Partnership for Long Term Care (PLTC) program resides in state plan amendments rather than Centers for Medicare and Medicaid Services (CMS) waivers. There is a provision in Medicaid law that allows a state to alter the asset eligibility criteria dependent on a state specified requirement. In this case, it is the purchase of a state certified long term care insurance policy.

The Partnership is sponsored by The Robert Wood Johnson Foundation.

Partnership Presentation

• Partners in Social Marketing

Related Links

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