IL Partnership LTC Insurance
Illinois is a Long-Term Care Partnership state. Effective date: August 16, 2007
Under the provisions of the federal Deficit Reduction Act (DRA) of 2005, Illinois expanded its Medicaid program to allow for qualified IL Partnership LTC insurance policies purchased after the state's effective date to provide guaranteed Medicaid asset protection.
Even though Illinois has had a legal Partnership program since 2007, the state only started certifying companies and agents to sell Illinois Partnership LTC plans since 2019. Your current policy may qualify for a Partnership "upgrade" if it was properly issued after 8/16/2007.
If you buy a Partnership-qualifying LTC insurance policy in Illinois, and after going on claim you use up the benefits in your policy, you are eligible to protect your assets from the Illinois Medicaid spend-down equal to the total benefits paid by your Partnership LTC insurance - this is also called an "asset disregard". Partnership-protected assets are also not subject to Illinois' Medicaid Estate Recovery program after you die.
Provide for your care ... and for your heirs with an IL Partnership LTC insurance plan.
The "partnership" is between you the consumer, Illinois' Medicaid program, and a private insurance company authorized to sell Partnership-certified LTC insurance.
While there are some differences between states, Illinois' Partnership program is like most. Partnership LTC insurance must meet basic Tax-Qualified consumer protection requirements as spelled out by the Illinois Legislature and by HIPAA in the Federal Tax Code. Partnership LTC insurance covers both facility care and care in your own home. And most importantly, an Illinois Partnership LTC insurance policy must allow for policy benefits to increase for inflation.
However, you must make sure your Partnership policy's inflation benefit is properly designed. This is the key to an Illinois Long-Term Care Partnership plan.
Inflation benefits are the key to Partnership qualification.
Here is how it works. Your age on the date you apply for coverage determines what type of inflation benefit you must include if you want Partnership long-term care asset protection:
A "future purchase option" or "guaranteed purchase option" inflation benefit generally does NOT qualify for Partnership. These plans require you to pay additional premium every year (or every three years) to continue to increase your benefits for inflation. Because these purchase options are not automatic - you can reject the increases - they usually do not qualify for Partnership.
(UPDATE: A few newer pay-as-you-go inflation options now qualify for Partnership in Illinois. Always work with a certified IL Partnership LTC insurance specialist who represents multiple companies and who will show you all of your options.)
Here's an example.
A 60-year-old buys a Partnership-qualified LTC insurance policy with the following benefits:
There is no extra charge to have a Partnership policy. Think of it as "asset protection for free."
Long-term care insurance policy benefit options are the same price whether Partnership-qualified or not. And like all LTC insurance, you must medically qualify for coverage. Some on-going, progressive conditions are uninsurable. Request a quote. We represent multiple companies, and our experience allows us to work with complex medical histories - even if you've been declined before.
"What if I move to another state?"
Forty-one states now have Partnership plans. Illinois' Long-Term Care Partnership program reciprocates with all but one other state (CA). For example, Florida is a Partnership state that reciprocates like Illinois. If you buy a Partnership LTC policy in Illinois and move to Florida, you will receive Partnership asset protection from the state of Florida just like you would if you stayed in Illinois. See the Partnership reciprocity map here.
The Illinois Long-Term Care Partnership program was effective for policies issued after August 16, 2007. Older policies were not grandfathered, but policies issued between 8/16/2007 and today MAY qualify for a Partnership "upgrade.". Contact us if you have an older policy and are interested in Illinois Partnership long-term care asset protection.
WARNING: Newer "linked-benefit" or "hybrid" LTC insurance benefits that are attached to a life insurance policy or an annuity do NOT qualify for Partnership asset protection, even if the linked-benefit includes automatic inflation.
Under the provisions of the federal Deficit Reduction Act (DRA) of 2005, Illinois expanded its Medicaid program to allow for qualified IL Partnership LTC insurance policies purchased after the state's effective date to provide guaranteed Medicaid asset protection.
Even though Illinois has had a legal Partnership program since 2007, the state only started certifying companies and agents to sell Illinois Partnership LTC plans since 2019. Your current policy may qualify for a Partnership "upgrade" if it was properly issued after 8/16/2007.
If you buy a Partnership-qualifying LTC insurance policy in Illinois, and after going on claim you use up the benefits in your policy, you are eligible to protect your assets from the Illinois Medicaid spend-down equal to the total benefits paid by your Partnership LTC insurance - this is also called an "asset disregard". Partnership-protected assets are also not subject to Illinois' Medicaid Estate Recovery program after you die.
Provide for your care ... and for your heirs with an IL Partnership LTC insurance plan.
The "partnership" is between you the consumer, Illinois' Medicaid program, and a private insurance company authorized to sell Partnership-certified LTC insurance.
While there are some differences between states, Illinois' Partnership program is like most. Partnership LTC insurance must meet basic Tax-Qualified consumer protection requirements as spelled out by the Illinois Legislature and by HIPAA in the Federal Tax Code. Partnership LTC insurance covers both facility care and care in your own home. And most importantly, an Illinois Partnership LTC insurance policy must allow for policy benefits to increase for inflation.
However, you must make sure your Partnership policy's inflation benefit is properly designed. This is the key to an Illinois Long-Term Care Partnership plan.
Inflation benefits are the key to Partnership qualification.
Here is how it works. Your age on the date you apply for coverage determines what type of inflation benefit you must include if you want Partnership long-term care asset protection:
- 60 and under: You must have a built-in, automatic compound inflation option of at least 3% (CPI-linked increases are OK)
- 61–75: Any built-in automatic inflation option qualifies (compound or simple) of at least 3% (CPI-linked increases are OK)
- 76 and over: Automatic inflation is not required
- (It is not yet known if inflation increases that stop after 20 years or age 75 will qualify for Illinois Partnership certification.)
A "future purchase option" or "guaranteed purchase option" inflation benefit generally does NOT qualify for Partnership. These plans require you to pay additional premium every year (or every three years) to continue to increase your benefits for inflation. Because these purchase options are not automatic - you can reject the increases - they usually do not qualify for Partnership.
(UPDATE: A few newer pay-as-you-go inflation options now qualify for Partnership in Illinois. Always work with a certified IL Partnership LTC insurance specialist who represents multiple companies and who will show you all of your options.)
Here's an example.
A 60-year-old buys a Partnership-qualified LTC insurance policy with the following benefits:
- $4,000 per month starting benefits
- 4-year benefit period which would provide a starting maximum benefit pool of $192,000
- 3% automatic compounding benefit increases
There is no extra charge to have a Partnership policy. Think of it as "asset protection for free."
Long-term care insurance policy benefit options are the same price whether Partnership-qualified or not. And like all LTC insurance, you must medically qualify for coverage. Some on-going, progressive conditions are uninsurable. Request a quote. We represent multiple companies, and our experience allows us to work with complex medical histories - even if you've been declined before.
"What if I move to another state?"
Forty-one states now have Partnership plans. Illinois' Long-Term Care Partnership program reciprocates with all but one other state (CA). For example, Florida is a Partnership state that reciprocates like Illinois. If you buy a Partnership LTC policy in Illinois and move to Florida, you will receive Partnership asset protection from the state of Florida just like you would if you stayed in Illinois. See the Partnership reciprocity map here.
The Illinois Long-Term Care Partnership program was effective for policies issued after August 16, 2007. Older policies were not grandfathered, but policies issued between 8/16/2007 and today MAY qualify for a Partnership "upgrade.". Contact us if you have an older policy and are interested in Illinois Partnership long-term care asset protection.
WARNING: Newer "linked-benefit" or "hybrid" LTC insurance benefits that are attached to a life insurance policy or an annuity do NOT qualify for Partnership asset protection, even if the linked-benefit includes automatic inflation.
