he other day I had a client ask two questions pertaining to the California Partnership Plan, which I had not previously been asked. I found a contact at the CA State Partnership, (named Tracy, her number: 916-552-8990), who was able to answer these questions for us.
Q1) Can she and her husband reduce the inflation protection from 5% compound to 5% simple after they turn 70.
A: The State representative said it is acceptable to reduce the inflation protection after age 70, and retain the benefits of the Partnership Plan, but this would not be advised due to the added protection of 5% compound compared to other types of inflation protection.
Q2) Why does the CA Partnership Plan mention that they will not guarantee coverage in a Residential Care Facility.
A: As opposed to the insurance company, which will pay for care by any licensed care provider, the State requires State approved beds/providers in a facility, or at home. They recommend asking any facility, prior to receiving care, how many beds qualify for State benefits. This could range from 0% to 100% of the facility.
The take home from the second answer, is that the State Partnership is willing to pay for Long Term Care costs indefinitely, should a person exhaust their private insurance, but they will require State approved facilities. The CA Partnership not only protects dollar for dollar asset to what they received in benefits from the private insurance company, in addition, they will allow a person to keep their home, no matter the value, and still qualify for State benefits. This is especially advantageous in California where real estate is among the most expensive in the nation.
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