Insurance Advisors Home Page | Health Care Insurance Information

On January 1^st, 2009, the State of Colorado became a Long Term Care Partnership State.  In essence if you purchase a Long Term Care Partnership Policy, every dollar that is paid out in benefits, a dollar of personal assets can be protected if you need to begin qualifying for Medicaid.  The State of Colorado is encouraging and rewarding citizens of Colorado with estate preservation protection for planning for their future Long Term Care and Home Health Care needs.

Colorado has two goals which are to assist their citizens in planning their future Long Term Care insurance needs through quality Long Term Care Insurance.  Secondly, the State wants to do this without depleting all their resources (assets) to pay for Long Term Care and Home/Community Based Services (HCBS).

A Partnership policy requires that a 5% compound inflation rider for individuals applying before 61 years of age.  From 61 to 75 years of age they require a 5% simple inflation rider.  For individuals 76 years of age or older there is no inflation protection required.

Remember, the most often used benefit in a Long Term Care insurance policy is for custodial home health services.  Insurance companies are suggesting policies that provide for at least $150-$200 in daily benefits.  Generally, the cost of waiting is between 2.5-5% after age 50.  After 65 years of age the cost of waiting to purchase a LTC policy is generally 10% a year making it very costly for individuals after age 70. 

Not everyone will want to purchase a Long Term Care Partnership Policy.  For some a short term Convalescent Policy (LTC/HCBS benefits up to 1 year) may be sufficient with assets and planning and can find these priced at under $100/month.  Other options include self-funding, LTC life insurance riders, LTC riders with annuities, or family care options.