I wanted to briefly mention the adoption and implementation of the LTCI partnership program in Wisconsin. This program is based on the concept that people who purchase qualifying policies and deplete their insurance benefits may then retain a specific amount of assets and still qualify for Medicaid, provided they meet all other Medicaid eligibility criteria except for the asset test. For example, if a single person purchases long-term care insurance with $100,000 of benefits and then uses those insurance benefits to pay for long-term care, he or she would be permitted to retain $102,000 of assets and still qualify for Medicaid. Contrast the $102,000 of assets with the otherwise applicable asset level for a single person of $2,000 and the impact is significant.
At this time, the Wisconsin legislature is working on the details of the LTCI partnership program with a target date for implementation of January 1, 2009. As we progress towards the implementation date, more details will become available. For now, it is important to keep in mind and prepare for the planning opportunities that some form of the LTCI partnership program in Wisconsin will present