Cona Elder Law Legal Alert – New York Partnership for Long Term Care

** Legal Alert **

New York State Joins
National Reciprocity Compact
for Partnership Long-Term Care Policies

New York State has long had its own long-term care insurance program called the New York State Partnership for Long-Term Care.  This is a special long-term care insurance program designed to share the cost of long term care between the recipient and the government.  Partnership policies combine private long-term care insurance and Medicaid benefits and are often more affordable than private long-term care insurance. There was one catch however:  Partnership policyholders living outside of New York State had to return to New York to receive benefits when the private policy portion was exhausted and coverage converted to Medicaid.

As of June 1, 2012, New York State joined the National Reciprocity Compact.  Clients with NYS Partnership plans no longer need to return to New York for care but instead can receive Medicaid benefits in any of the 40 participating states (see the list of states below).  And there's more good news:  reciprocity is retroactive for all existing New York State Partnership policyholders.

Long-term care insurance is always an important part of an estate and asset protection planning conversation.  There are many factors to evaluate when considering long-term care insurance, such as age, health status, income, assets and family composition.  For example, if you have pre-existing health conditions, the premiums may be too high or you may not qualify at all.  Similarly, the older you are when you purchase a policy, the higher your premiums will be. 

With the ever-changing landscape of Medicaid eligibility rules and the daunting notion of paying privately for long term care needs, long-term care insurance may be a good option in planning for future health care needs.   By joining the National Reciprocity Compact, New York State has opened up Partnership Plans to snowbirds and other people who may wish to retire or move to another state at some point in their retirement years.

Partnership States with Reciprocity

• Alabama
• Arizona
• Arkansas
• Colorado
• Connecticut
• Florida
• Georgia
• Idaho
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Minnesota
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

 Partnership State with No Reciprocity

• California

 States With No Partnership Program

• Alaska
• Hawaii
• Illinois
• Michigan
• Mississippi
• New Mexico
• Utah
• Delaware
• Massachusetts
• Vermont