IMPORTANT CONSUMER INFORMATION REGARDING
THE TENNESSEE LONG-TERM CARE INSURANCE PARTNERSHIP PROGRAM
Some long-term care insurance [policies] [certificates] sold in Tennessee may qualify for the Tennessee 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 Partnership Policies [Certificates] may protect the [policyholder’s] [certificateholder's] assets through a feature known as “Asset Disregard” under TennCare, Tennessee’s Medicaid program.
Asset Disregard means that an amount of the [policyholder’s] [certificateholder’s] assets equal to the amount of long-term care insurance benefits received under a qualified 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 qualified Partnership [Policy] [Certificate] without affecting the person’s eligibility for Medicaid. All other Medicaid eligibility criteria will apply and special rules may apply to persons whose home equity exceeds $500,000. Asset Disregard is not available under a long-term care insurance [policy] [certificate] that is not a Partnership [Policy] [Certificate]. Therefore, you should consider if Asset Disregard is important to you, and whether a Partnership Policy meets your needs. The purchase of a Partnership Policy does not automatically qualify you for Medicaid.
What are the Requirements for a Partnership [PoIicy] [Certificate]? In order for a [policy] [certificate] to qualify as a Partnership [Policy] [Certificate], it must, among other requirements:
• be issued to an individual after February 8, 2006;
• cover an individual who was a Tennessee resident when coverage first becomes effective under the policy;
• be a tax-qualified policy under § 7702(B)(b) of the Internal Revenue Code of 1986;
• meet stringent consumer protection standards; and
• meet the following inflation requirements:
o For ages 60 or younger - provides compound annual inflation protection
o For ages 61 to 75 -provides some level of inflation protection
o For ages 76 and older - no purchase of inflation protection is required
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] qualifies as a Partnership [Policy] [Certificate].
What Could Disqualify a [Policy] [Certificate] as a Partnership Policy. Certain types of changes to a Partnership [Policy] [Certificate] could affect whether or not such [policy] [certificate] continues to be a Partnership [Policy] [Certificate]. If you purchase a Partnership [Policy] [Certificate] and later decide to make any changes, you should first consult with [carrier 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] [certificate] as a Partnership [Policy] [Certificate], you would not receive beneficial treatment of your [policy] [certificate] under the Medicaid program of that state. The information contained in this disclosure is based on current Tennessee and Federal laws. These laws may be subject to change. Any change in law could reduce or eliminate the beneficial treatment of your [policy] [certificate] under Tennessee’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 Medicaid eligibility, you should contact the Bureau of TennCare.
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