Medicaid Law: Colorado’s Partnership for Long Term Care Insurance

It is estimated that 60% of senior citizens will need long-term care as they grow older and one in five over the age of 65 will spend more than two years in a nursing home. With the average cost of a Colorado nursing home now topping $70,000 annually, seniors must often turn to Medicaid to assist with nursing home expenses. To address the growing need for assistance with long term care expenses, in 2008, Colorado began a Partnership for Long Term Care program.
Colorado’s Long-term Care (LTC) Partnership is a public-private venture established to encourage and reward residents for planning ahead for their future long-term care costs rather than relying solely on Medicaid. The Partnerships are an alliance between private insurers and the state government to help Colorado residents plan and pay for future long-term needs without depleting all of their assets to handle the catastrophic costs.
Under Colorado’s Medicaid Law, a consumer must ‘spend down’ their assets in order to qualify for Medicaid coverage should they have more than the Medicaid limit. In addition, under the Estate Recovery Program, Medicaid is permitted to recoup their costs through the estate of a patient in many circumstances.
An LTC Partnership policy allows consumers to protect personal assets in the event they must apply for Medicaid assistance to pay LTC costs. Colorado is using what is termed the “dollar-for-dollar” model, which means that LTC Partnership policy holders who apply for Medicaid coverage are able to maintain their assets equal to the benefits paid under the LTC Partnership policy. Thus, family wealth is preserved for future generations.
If you have assets that you want to protect, can afford the premiums and want to be in charge of the type of long term care you receive, the Partnership for Long Term Care program can help you achieve those goals. An estate planning attorney with experience in Medicaid planning can help you determine the right path for your future needs.
Hammond Law Group, LLC – Medicaid Law Colorado Springs CO