Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 35 - Long Term Care Insurance › Part 1 - Long Term Care Insurance (formerly Insurance Regulation 44) › Section 230-RICR-20-35-1.34 - Rhode Island Long-Term Care Partnership Program

Current through June 14, 2024
A. In order to provide for the offering and
				  sale of policies (including certificates) under the Rhode Island State
				  Long-term Care Insurance Partnership Program, in accordance with Section
				   1917(b)(1)(C)   of the Social Security Act [
				42 U.S.C.
				  1396p(b)(1)(C), as amended
				  by
				  Pub.
				  L. No. 109-171,
				  Sec.
				  6021], and R.I. Gen. Laws §
										40-8-22, the following provisions
				  in §
										1.34(B)   of this Part shall apply:
B. A "qualified state long-term care
				  partnership policy" or "partnership policy" must meet the following conditions:
1. The person insured under the policy is
				  Rhode Island resident at the time the coverage becomes effective.
2. The policy is a qualified long-term care
				  insurance policy as defined in Sec. 7702B(b) of the Internal Revenue Code of
				  1986, as amended. (26 U.S.C.
				  7702B(b)).
3. The policy provides the following
				  inflation protection:
a. If the person
				  insured has not attained the age of 61 as of the date of purchase, the policy
				  provides:
(1) automatic annual compounded
				  inflation increases at a rate not less than be no less favorable than three
				  percent (3%) compound annual inflation protection; or
(2) automatic annual compounded inflation
				  increases at a rate based on changes in the consumer price index. "Consumer
				  price index" means consumer price index for all urban consumers, U.S. city
				  average, all items, as determined by the Bureau of Labor Statistics of the
				  United States Department of Labor; or
(3) annual compounded inflation increases at
				  a rate not less than three percent which meets all of the following
				  requirements:
(4) the benefit
				  increases occur automatically, unless the insured specifically rejects an
				  increase;
(5) the increases must be
				  provided until the insured has at least attained age 76 and each increase up to
				  and including the increase that takes effect at age 76 must not be rejected in
				  order to retain partnership policy status - the insurer must notify the insured
				  that rejection of an increase will cause the policy's partnership status to
				  end;
(6) increases may end when the
				  insured has attained age 76 or if the insured becomes eligible for benefits on
				  or after age 76;
(7) the additional
				  premium for each increase under this feature may be based on the premium rates
				  that apply to the insured's attained age at the time of the increase; and
				  rejection of an increase may not operate to prevent the insured from receiving
				  future increases.
b. If
				  the person insured has attained age 61 but has not attained age 76 as of the
				  date of purchase, the policy provides some level of inflation
				  protection
c. If the person insured
				  has attained age 76 as of the date of purchase, the policy may, but is not
				  required to, provide some level of inflation protection.
4. An issuer may offer the exchange of one
				  policy for a qualified partnership policy, in accordance with the rules for
				  exchange applicable to new services or providers contained in §
											1.26   of
				  this Part. In making an offer to exchange policies that were in effect prior to
				  the effective date of the 2008 amendments to this Part, the issuer shall
				  determine conditions of the offer in a uniform and nondiscriminatory manner.
				  For purposes of applying the Medicaid rules relating to the Partnership
				  program, the addition of a rider, endorsement, or change in schedule page for a
				  policy may be treated as giving rise to an exchange." When the addition of a
				  rider, endorsement, or change in the schedule page for a policy is used to give
				  the coverage a new effective date to qualify for Partnership (and no other
				  coverage changes are made), the policyholder shall not lose any benefits built
				  up from the original effective date of the coverage.