Regulatory Bulletin 2009-05
Attachment B
STATE OF ARIZONA
LONG-TERM CARE INSURANCE PARTNERSHIP PROGRAM
PRE-PURCHASE NOTICE
IMPORTANT NOTICE FOR ARIZONA RESIDENTS
WHO ARE THINKING OF BUYING LONG-TERM CARE INSURANCE
Insurance Company Name: _________________________________________________________
Producer’s Name: _________________________________________________________________
Address: ________________________________________________________________________
Phone Number: ___________________________________________________________________
Email Address: ___________________________________________________________________
Long-Term Care Partnership Policies
The State of Arizona has implemented a Long-Term Care Insurance Partnership Program (the
“Partnership Program”) that constitutes
a
partnership between state government and private
insurance companies to assist Arizona residents in planning their long-term care needs.
Insurance companies voluntarily participate in the Partnership Program by offering long-term
care insurance policies (“Partnership Policies”) that meet special federal requirements.
If you purchase a Partnership Policy and later apply for long-term care coverage from Arizona’s
Medicaid program, your application will include a Medicaid eligibi
lity feature known as "Asset
Disregard". “Asset Disregard” means that Medicaid will disregard some of your assets in determining
whether you are eligible for Medicaid long term care coverage. The amount of assets that Medicaid
can disregard will be equal to amount of long-term care insurance benefits you have received under
your Partnership Policy. If you are thinking of buying a long-term care insurance policy, you should
carefully consider whether Asset Disregard is important to you, and whether your long-term care
insurance policy should be a Partnership Policy.
Three important things to know about Partnership Policies.
1. The purchase of a Partnership Policy does not automatically qualify you for Medicaid.
Medicaid has other eligibility criteria that ma
y disqualify you. In addition, the Asset Disregard
rules may not apply to you if your home equity exceeds $500,000.
2. Asset Disregard is only available under a Partnership Policy and not every long-term care
policy is a Partnership Policy.
3. It is possible that a Partnership Policy will lose its Partnership status in the future if:
a. You make a change to a Partnership Policy, including a change to the inflation
protection provisions, if any.
b. You move to a state that does not have a Partnership Program.
c. There is a change to state or federal law that governs the Partnership Program.
Additional Information
If you have questions about buying a long-term care insurance policy please contact the insurer. If
you have questions regarding current laws governing Medicaid eligibility, please contact the Arizona
Health Care Cost Containment System (“AHCCCS”).
LTCPP-AZ Attachment B
