Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 3 - Casualty Insurance › Appendix 1

Current through June 24, 2024
PARTNERSHIP POLICY STATUS DISCLOSURE NOTICE
Important Notice Regarding Your Policy's Long-Term Care
				Insurance Partnership Plan Status
(Please Keep This Notice With Your Policy or
				Certificate)
The Wisconsin Long-Term Care Insurance Partnership Program
				(Wisconsin Partnership Program) is a partnership between the State of Wisconsin
				and private insurers of long-term care insurance policies [certificates]. The
				Wisconsin Partnership Program became effective on January 1, 2009. This Notice
				explains the Medicaid asset protection that you may receive being insured under
				a Partnership Policy [Certificate].
Notice of Partnership Plan Policy Status.
Your
				long-term care insurance policy [certificate] is intended to qualify as a
				Qualifying Partnership Policy [Certificate] under the Wisconsin Long-Term Care
				Insurance Partnership Program as of your policy's [certificate's] effective
				date.
You should also be aware that insurers are required to
				provide personally identifying information, including your name, to the federal
				government to be entered into a federal data base to which state Medicaid
				departments will have access.
Medicaid Asset Protection Provided by the State Medicaid
				Program.
Long-term care insurance is one tool that helps individuals
				prepare for future long-term care needs.
The purchase of a Qualifying
				Partnership Policy [certificate] does not automatically qualify you for
				Medicaid.
In particular, such policies [certificates] may permit
				individuals to protect assets from spend-down requirements under Wisconsin's
				Medicaid program if assistance under this program is ever needed and you
				otherwise qualify for Medicaid.
Specifically, the asset eligibility and recovery provisions of
				the Wisconsin Medicaid program are applied by disregarding the amount of assets
				equal to the amount of insurance benefits you have received from your
				Qualifying Partnership Policy [Certificate]. The disregarded assets are also
				exempt from estate recovery. For example, if you receive $200,000 of insurance
				benefits from your Qualifying Partnership Policy [Certificate], you generally
				would be able to retain $200,000 of assets above and beyond the amount of
				assets normally permitted for Medicaid eligibility.
Other Medicaid eligibility requirements apart from permissible
				assets shall be met, including special rules that may apply if the equity in
				your home exceeds [$750,000]. In addition, you shall meet the Medicaid
				program's income requirements and may be required to contribute some of your
				income to the costs of your care once you become eligible for Medicaid.
				Medicaid eligibility requirements may vary by county and may change over time.
				Medicaid eligibility requirements may also be different from state to
				state.
Additional Consumer Protections.
In addition to
				providing Medicaid asset protection, your Partnership Policy [Certificate] has
				other important features. Under the rules governing Wisconsin's Long-Term Care
				Insurance Partnership Program, your Qualifying Partnership Policy [Certificate]
				shall be a tax-qualified long-term care insurance contract under Federal tax
				law, and as such the insurance benefits you receive from the policy generally
				will not be subject to income tax. (Please note that a policy or certificate
				can be a qualified long-term care insurance contract under Federal and State
				income tax law, with the same income tax treatment, even if it is not a
				Qualifying Partnership Policy [Certificate].) In addition, if you were under
				age 76 when you purchased your Qualifying Partnership Policy [Certificate], it
				shall provide inflation protection to help protect against potential future
				increases in the cost of long-term care. (For older purchasers, only an offer
				of inflation protection is required.)
What Could Disqualify Your Policy as a Partnership Policy
				[Certificate].
If you make any changes to your policy or certificate,
				such changes could affect whether your policy [certificate] continues to be a
				Qualifying Partnership Policy [Certificate]. Before you make any changes, you
				should consult with the [carrier's name] to determine the effect of a proposed
				change. In addition, if you move to a state that does not maintain a
				Partnership Program or does not recognize your policy as a Qualifying
				Partnership Policy [Certificate], you would not receive Medicaid asset
				protection in that state. However, the coverage contained in your policy would
				not be affected. Also, changes in Federal or State law could modify, reduce or
				eliminate the Medicaid asset protection available with respect to your
				Qualifying Partnership Policy [Certificate] after you have purchased the
				policy.
Additional information.
If you would like further
				information about the Medicaid asset protection provided by your Qualifying
				Partnership Policy [Certificate] or the Wisconsin's Long-Term Care Insurance
				Partnership Program, please contact State of Wisconsin Member Services at
				1-800-362-3002.