Transcript The new mandated LTC NAIC/PartnershipTraining
“One Year Later…………………..
Where’s the Beef?”
presented by
CLTC Partnership Training
The Corp for LTC Certification CLTC Partnership Training ClearCert
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What is a Partnership policy ?
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Which states have adopted new LTC training requirement?
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What training options are available ?
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What if I have licenses in multiple states?
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How do I know the training is compliant?
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What new states are imposing this training in 2009?
To encourage public/private partnerships between carriers and states which would allow purchasers to protect assets from Medicaid spend down. Intent is to encourage the purchase of private insurance for long-term care and reduce dependence on Medicaid
Connecticut: California: New York: Indiana: Dollar-for-Dollar Model Dollar-for-Dollar Model Dollar-for-Dollar or Total Dollar-for-Dollar or Total
• Omnibus Reconciliation Act of 1993 included the Waxman Amendment which effectively blocked development of additional LTC Partnership Programs. Existing programs were grandfathered • Deficit Reduction Act of 2005 repealed this and opened the door for Partnership state expansion
• DRA allows each state to implement a Partnership program. • States must file a State Plan Amendment (SPA) to request federal approval to make changes to their Medicaid program.
• New Partnership plans will be more uniform than original four states but still have room for some variations
• Policies are virtually the same • Partnership plans have the option of protecting a portion of their assets if they choose to apply for Medicaid – Asset Disregard (protected amount will be the inflated benefit amount) • Policies will be priced the same as non partnership policies.
Inflation Protection Requirements This is the key aspect over which the agent has control! If you include at least the minimum required inflation coverage, the policy will be issued as a Partnership policy!
Inflation requirements clearly defined: Age 60 and under:
Some form of compound inflation protection Age 61 – 75: Some form of inflation protection must be included Age 76 +: May offer inflation protection (not required for application)
Check with your insurer for product availability
Partnership Policy
Assets Partnership Plan Medicaid Payout Spend Down Example 1 Example 2 Example 3 $ 150,000 $ 200,000 $1,000,000 $150,000 $150,000 $400,000 Required $ 0 $ 50,000 $600,000
Non-Partnership Policy
Example 4 $200,000 $0 $200,000
Partnership Product Certification — existing policies certified by state DOI as meeting policy requirements Grandfathering—not allowed. Partnership policies must have an effective date later than the state’s Partnership effective date
Exchanges
– allowed on state basis
DRA allows for reciprocity – determined by each state States may not recognize asset protection States may not be Partnership states
States adopting Partnership Plans also mandate the new LTC Agent Training requirement States may adopt the new Training requirement without adopting Partnership status
The new NAIC/Partnership Training is here to stay
: 8 hours initial 4 hours every 24 months
FL ID ME MD MN MO MT ND NE OH OR RI SD VA
AR AZ CO GA IA IL NJ OK PA SC TN TX WA WI
• What is the training requirement for my state?
• How do I know the course complies?
• What about reciprocity?
• What’s the most efficient way to complete this new training?
• Independent resource for the LTC industry • Posts state training regulations and updates • Lists course reviews and state approvals • Agent Reciprocity Tracker for multi-state licenses
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Classroom On-Line (Self study)
Classroom
CLTC certified Instructors LTC Planning philosophy Instructors share personal experiences
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On-Line Training…… “The Flash”
Not just text, but Flash technology Study at your own pace No time requirements Take the exam when ready