CO Average daily benefit purchased: $ 179 per day.

Colorado is home to over 5 million people. With nearly 550,000 of those residents aged 65 or older (according to the 2010 US Census), this large and growing number of seniors in the Centennial State will increasingly need and use Long Term Care services, including in-home care and care in nursing homes and assisted living facilities, which will put increasing economic stress on both families and the state. In 2011, Colorodo’s Long Term Care Medicad expenses alone were close to $1.4 billion, and this number doesn’t even take into account the additional amount paid outside of medicaid.

Long Term Care Insurance is an important retirement planning tool, and Colorado residents have the choice of around 17 great Long Term Care Insurance companies that can help protect their savings in the event they need Long Term Care services.

The Colorado Long Term Care Partnership program  is a public/private arrangement between long-term care insurers, Colorado’s Medicaid program, the Division of Insurance, the Department of Human Services and the citizens of Colorado. The Partnership program was designed to help Colorado residents protect their assets by providing an incentive to buy a Long Term Care Insurance policy. This public-private partnership creates an innovative program offering individuals quality, affordable long-term care insurance and a way to receive needed care without depleting all their assets.Those who purchase a Long Term Care insurance policy through the Colorado Long Term Care Partnership program are protected both by their private policy and eventually, if needed, by Medicaid.

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Colorado governor Bill Ritter announced in 2008 that Colorado, like many states, instituted a program to tackle the problem of lack of Long Term Care Insurance coverage for its residents via a partnership program between private industry and the State.

Colorado’s, like most of the rest of the nation, has a rapidly aging population and awareness of the need for Long Term Care Insurance remains low.  Long Term Care Insurance covers the cost of services such as nursing homes, home health  care and assisted living facility care when one is unable to care for themselves and is not covered by regular health insurance and only by Medicaid if one qualifies, which can be difficult without exhausting all of your assets.

The Colorado Long Term Care Insurance Partnership is an alliance between the private insurance industry and the state government to help Colorado residents plan for future long-term needs without depleting all of their assets to pay for care.  It is designed to encourage and reward Colorado residents for planning ahead for future Long Term Care needs and enables Colorado residents who purchase Long Term Care Partnership insurance to have more of their assets protected if they later need the state Medicaid program to help pay for their long-term care.

A recent study found that 7 in 10 Americans have made no plans for long-term care and many were not even aware of this type of insurance and what it covers.  And, given that the Department of Health and Human Services estimates that 2/3 of all Americans will need long-term care at some point after they pass age 65, this does, indeed, constitute a problem to be reckoned with.  Many Americans, regardless of the State in which they live, are now at risk of having to exhaust their nest egg or rely on their children or other relative to care for them in retirement should they become unable to care for themselves. Residents of Colorado are able to participate in the Colorado Long Term Care  Partnership Program via a number of policy options that meet certain State-mandated criteria.   Colorado is using this approach to give its citizens greater control over how they finance their long term care and to help shore up the public safety net against upcoming demographic pressures.  Thus, Colorado, like many states, aims to reward those who do their part in solving this problem of Long Term Care Insurance coverage by planning ahead and protecting themselves and their assets.

Basically, it works like this: purchasers of partnership policies are eligible for Medicaid asset protection which means that for every dollar that a Long-Term Care Partnership insurance policy pays out in benefits, a dollar of personal assets can be protected (disregarded during the eligibility review and at estate recovery) if you choose to apply for Medicaid.  This enables partnership policyholders to shield their assets should they need to apply for Medicaid as normally one is required to exhaust all assets before qualifying for Medicaid’s long-term care coverage. Highlights and requirements of the Partnership Program include:In order for a policy to qualify as a Partnership Policy, it must, among other requirements: Dollar-for-dollar Medicaid asset protection.  Inflation protection 5% compounded annually or, in the alternative, consumer price indexed inflation protection compounded annually up to age 61From age 61 to 75, Colorado requires inflation protection of 5% simple interest, 3% compound interest, CPI or 5% compounded 2 times max.

From age 76 on, no inflation is required but still may be purchased as part of the policyThis provides favorable inflation protection to Colorado residentsA range of policy options via approved carriers The inflation requirements are crucial here.  Inflation protection insures that your policy will pay out in tomorrow’s dollars and that your covered for the care you need.

You can start planning today for your future long term care needs and securing all that you and your family have worked so hard to achieve for your retirement by purchasing a Long Term Care Insurance policy.  LTC Tree can assist you in finding a plan through the Colorado Long Term Care Partnership Program that is right for you, no matter your age or financial status.

Further Reading: See the original news release from KKTV of Colorado which has some good pointers for Colorado citizens, including this link to the state Long term care insurance Web site.