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Medical Services Policy Manual, Section H

H-500 Long Term Care Insurance Partnership Program

H 520 Policy Identifiers

H-520 Policy Identifiers MS Manual 01/01/14 The Arkansas Departmentof Insurance has established specific criteria that the qualified long term care insurance policy must meet. The criteria are: 1. The policy must cover a person who is a resident of the Qualified Partnership State when coverage first became effective. 2. The policy must meet the definition of a “qualified long term care insurance policy” established by the Internal Revenue Code of 1986. 3. The policy must not have been issued earlier than July 1, 2008. 4. The policy must include inflation protection which is established at the time of purchase. The inflation protection can be up to 5% but not less than 3%. The resources to be protected will be designated during the initial application process and the value of the designated resources must be verified by the caseworker.  NOTE: Under the spousal impoverishment rule, only resources that belong to the institutionalized spouse (IS) are protected. H-530 Disclosure MS Manual 01/01/14 A statement disclosing partnership qualified status will not be included on the policy. A separate disclosure document will be sent to the individual by the insurance company after the purchase of the policy. The content of the disclosure notice will include: 1. The insured’s name, policy number, date of issue, 2. A statement that the disclosure form should be kept with the policy, 3. An overview of resource disregard, 4. Any policy changes that might affect partnership qualified status; and 5. A website address for more information. When an individual applying for Medicaid states that he or she has a Qualified LTC Partnership policy, the caseworker will request the disclosure notice or other documents so that contact can be made to the insurer to verify the amount of the policy and benefits paid to determine the amount of the resource disregard.