About the NAIC … The National Association of Insurance Commissioners (NAIC) is the oldest association of state government officials. Its members are the chief insurance regulators in all 50 states, the District of Columbia, and five U.S. territories. State regulators’ primary responsibility is to protect insurance consumers’ interests, and the NAIC helps regulators do this in several different ways. This Shopper’s Guide is one example of the NAIC’s work to help states educate and protect consumers. Another way the NAIC state regulators is by giving them a forum to develop uniform public policy when that’s appropriate. It does this through a series of model laws, regulations, and guidelines developed for the states’ use. States may choose to adopt the models intact or change them to meet the needs of their marketplace and consumers. As you read through this Shopper’s Guide, you’ll find several references to NAIC model laws or regulations related to long-term care insurance. Check with your state insurance department to find out if your state has enacted these NAIC models. National Association of Insurance Commissioners 1100 Walnut Street Suite 1500 Kansas City, MO 64106-2197 Phone: (816) 842-3600 Fax: (816) 783-8175 www.naic.org Revised 2018
Long-Term Care Insurance Partnership Policies are long-term care insurance partnership policies that help you manage the financial impact of spending down your assets to meet Medicaid eligibility standards. When you buy a partnership policy, you’re protected from the normal Medicaid requirement to spend down your income and assets to become eligible. Note these vary by state. In most states, you don’t have to use up all of your partnership policy benefits to qualify for Medicaid. In most states, you can qualify for Medicaid and keep income and assets to the amount of claims your partnership policy paid. Partnership policies must be federally tax-qualified plans. They also must include certain consumer protections. They must include inflation protection benefits so benefits keep up with increasing long-term care costs over time. Partnership policies are required to include inflation protection only for those who are 75 or younger when they buy the policy. The requirements are: Compound annual inflation protection for those younger than age 61. Some level of inflation protection for those ages 61 to 75. How will you know if you have a partnership policy? The insurance company will either give you that information in writing with your policy or send you a letter. Either way, it’s very important to keep this notice. Please keep in mind that partnership policies have specific requirements. They aren’t offered in every state. Check with your state insurance department or insurance assistance program to learn if these policies are available in your state. Many states with long-term care partnership policies have information about them on their web sites. Use this link to locate your state’s insurance department website: . Also, the U.S. Department of Health and Human Services maintains a website at with information about long-term care insurance and partnership policies. Tax-Qualified Policies You may have a choice between a federally “tax-qualified” long-term care insurance policy and one that is “non-tax-qualified.” The differences between the two types of policies are important. A tax-qualified policy, or a qualified policy, offers potential federal income tax advantages. If you itemize your income tax deductions you may be able to deduct part or all of the premium you pay for a qualified policy. You should consult with your tax advisor or tax consultant regarding whether you may be able to deduct part or all of the premium.