What is a Long Term Care Partnership Program, and why should I care?

Posted on Jun 18, 2015 in Industry & Legislative News, Success ideas

Many people mistakenly believe government programs, like Medicare and Medicaid, will provide all the long-term care services they need. Unfortunately, this may not be the case. Failing to plan how you’ll pay for long-term care services may place you at serious financial risk.


Medicare generally does not pay for long-term care services. Instead, it’s designed to help get you back on your feet following an illness or injury.

  • Medicare pays only for “skilled care” you receive in a nursing home, but only if it’s medically necessary and only for a limited period of time
  • Medicare does not pay for “custodial care” services many people receive in their homes – services like assistance with dressing, bathing and using the bathroom. Medicare also does not pay for care received in an assisted living facility


Medicaid provides long-term care assistance to individuals who have exhausted their personal resources.

  • Medicaid pays for both “skilled care” and “custodial care” received in a nursing home, but only after you spend down your assets to meet eligibility guidelines in your state
  • In some states, Medicaid may pay for some services received at home or in an assisted living facility

What is a long-term care partnership program?

It’s a partnership between your state government and private insurance companies. Insurance companies voluntarily agree to participate by offering long-term care insurance policies that meet specified criteria. The state agrees to provide Medicaid asset protection to people who purchase partnership-qualified policies.

How does Medicaid asset protection work?

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The Role of Long Term Care Insurance in Retirement Planning

Posted on May 20, 2015 in Success ideas

As you are planning for retirement, you’ve probably started thinking about where you’ll live and the leisure activities you’ll finally have time to pursue. But have you considered how you’ll pay for the Long Term Care (LTC) services you may need?

According to the U.S. Department of Health & Human Services, 70 percent of people who reach age 65 will need long-term care services at some point in their lives.

The national average cost for a year of nursing home care is approaching $80,000. And that’s just for one person. If both you and a spouse need care, your retirement nest egg could be depleted quickly. Without a plan to pay for Long Term Care services, you could be putting everything you worked a lifetime to accumulate at risk.

LTC Cost chart

How Will you Pay?

When it comes to paying for LTC services, you have several options, including:

The Government – If you plan to rely on government programs, like Medicare and Medicaid, you need to understand that Medicare only provides coverage for a short time – just long enough to help people get back on their feet after an illness or accident. Medicaid is a program for people with limited assets, which means in order to qualify for Medicaid benefits, you may first have to spend down your retirement savings.

Self-Funding – Even if you have sufficient assets to pay for the care you need, there’s a chance those assets won’t be easily accessible when you need them. Liquidating assets – cashing in stocks, selling property or dipping into 401(k) or other savings accounts – can trigger additional costs in the form of capital gains tax, income tax and surrender charges.

Long-Term Care Insurance – An LTCi policy is designed to help pay a portion of LTC expenses. Owning a policy may give you options for care, whether at home or in an assisted living facility or nursing home. It may help prevent you from relying on family members for care. And may be the best way to protect the assets you’ve set aside for retirement. Also, some states, including Texas, have Partnership Programs that allow correctly designed LTC policies to protect even more of your assets should your LTC insurance benefit run out.

SB&K Benefits, LLC can help you design and implement Long Term Care insurance plans to fit your needs and budget. Call us for a consultation at 832-482-2494 or reach us through our contact form on this website.

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