Indiana And Its Long Term Care Insurance Partnership

The demand for long-term care continues to grow in Indiana, and therefore the cost of those benefits increase as well. In effect, residents are becoming very much concerned with these booming health care costs.

A survey conducted by AARP in 2007 revealed that members aged 50-64 and non-members age 30-49 reside in South Central Indiana and 82% of these respondents believe that the state of Indiana should give priority to affordable long term care choices for its residents.

According to a study on the median costs of long-term care in the State of Indiana conducted by Genworth Financial, a leading insurance company; though there are a number of choices and services available in the state, the costs vary as well which are very dependent on where the person lives.

In Indiana, most residents opt turning to Medicaid to help pay for the costs of long term care. Individuals who are found eligible are aided by the Indiana Medicaid, a medical assistance program funded by the federal and state government. But, when it comes to determining eligibility, in case of a person who is single, his or her assets must not exceed $ 1,500. For married couples, assets must not exceed $ 2,250 to qualify for the program.

For Indiana to push further with its objective of helping and reaching out more to its residents particularly with long term care costs, the Indiana Long Term Care Insurance Program or ILTCP was developed. ILTCP is a collaborative program between the State of Indiana through the Medicaid program and private insurance. It is designed to help Hoosiers prepare for their future while protecting their life savings from exhaustion due to high-cost treatment.

During the 1980s, the State of Indiana was included among the four pilot states where Long Term Care Insurance was first developed. Since then, there have been changes and modifications to help people more who could use Medicaid for their long-term needs after they have exhausted their insurance benefits.

In fact, the most recent development with the states LTCi is the expansion of asset protection in 1998 and tax deduction for premiums of ILTCP policies in 1999. The expansion of asset protection was created to include both dollar-for-dollar and total asset protection, while the tax deduction for premiums was implemented in 2000. And, for a stronger mandate on the ILTCP, the program was assigned to the Indiana Department of Insurance in 2006.

Long term care policies offered in Indiana must include state tax deduction, inflation protection, state reciprocity, Medicaid asset protection, dollar-for-dollar asset protection, and total asset protection. These LTC policies come in two types, namely comprehensive and Facility-Only policy. Comprehensive policy provides coverage for nursing home and community care while facility-only policy provides coverage for care in nursing facilities only.

There are more things to know about the Indiana long term care partnership and its various long term care insurance policy options. Get the latest developments and better understand what insurance for long term care is all about.

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