Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 3 - Casualty Insurance › Appendix 2

Current through June 24, 2024
PARTNERSHIP PROGRAM NOTICE
Important Consumer Information Regarding the Wisconsin
				Long-Term Care Insurance Partnership Program
Some long-term care insurance policies [certificates] sold in
				Wisconsin may qualify for the Wisconsin Long-Term Care Insurance Partnership
				Program (the Partnership Program). The Partnership Program is a partnership
				between state government and private insurance companies to assist individuals
				in planning their long-term care needs. Insurance companies voluntarily agree
				to participate in the Partnership Program by offering long-term care insurance
				coverage that meets certain State and Federal requirements. Long-term care
				insurance policies [certificates] that qualify as Qualifying Partnership
				Policies [Certificates] may protect the policyholder's [certificateholder's]
				assets through a feature known as "Asset Disregard" under Wisconsin's Medicaid
				program.
Asset Disregard
means that amount of the
				policyholder's [certificateholder's] assets equal to the amount of long-term
				care insurance benefits received under a Qualifying Partnership Policy
				[Certificate] will be disregarded for the purpose of determining the insured's
				eligibility for Medicaid. This generally allows a person to keep assets equal
				to the insurance benefits received under a Qualifying Partnership Policy
				[Certificate] without affecting the person's eligibility for Medicaid. The
				disregarded assets are also exempt from estate recovery. All other Medicaid
				eligibility criteria will apply and special rules may apply to persons whose
				home equity exceeds $750,000. Asset Disregard is available under a Qualifying
				Partnership Policy [Certificate]. Therefore, you should consider if Asset
				Disregard is important to you, and whether a Qualifying Partnership Policy
				meets your needs. The purchase of a Qualifying Partnership Policy does not
				automatically qualify you for Medicaid.
What are the Requirements for a Partnership Policy
				[Certificate]?
In order for a policy [certificate] to qualify as a
				Qualifying Partnership Policy [Certificate], it shall, among other
				requirements:
·
Have an effective date on or after January 1,
				2009;
·
Be issued to an individual who was a Wisconsin
				resident when coverage first becomes effective under the policy;
·
Be a tax-qualified policy under s. 7702(B)(b) of
				the Internal Revenue Code of 1986, as amended;
·
Meet certain consumer protection standards;
				and,
·
Meet the following inflation
				requirements:
·
For persons age 60 or younger - provide compound
				annual inflation protection of at least 3%.
·
For persons age 61-75 - provide annual inflation
				protection of at least 3% not compounded.
·
For persons age 76 and older - there are no
				requirements for purchasing inflation protection.
If you apply and are approved for long-term care insurance
				coverage, [carrier name] will provide you with written documentation as to
				whether or not your policy [certificate] is a Qualifying Partnership
				Policy.
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.
What Could Disqualify a Policy [Certificate] from
				Continuing to be a Qualifying Partnership Policy?
Certain types of
				changes to a Qualifying Partnership Policy [Certificate] could affect whether
				or not such policy [certificate]continues to be a Qualifying Partnership Policy
				[Certificate]. If you purchase a Qualifying Partnership Policy [Certificate]
				and later decide to make a change, you should first consult with [carrier name]
				to determine the effect of the proposed changes. In addition, if you move to a
				state that does not maintain a Partnership Program or does not recognize your
				policy [certificate] as a Qualifying Partnership Policy [Certificate], you
				would not receive treatment of you policy [certificate] under the Medicaid
				program of that state. However, the coverage under your policy will not be
				affected. The information contained in this disclosure is based upon current
				Wisconsin and Federal laws. These laws may be subject to change. Any change in
				law could modify, reduce or eliminate the treatment of your policy
				[certificate] under Wisconsin's Medicaid program.
Additional Information:
If you have questions
				regarding long-term care insurance policies [certificates] please contact
				[carrier name]. If you have questions regarding current laws governing
				Wisconsin Medicaid eligibility, you should contact State of Wisconsin Member
				Services at 1-800-362-3002.