Partnership Policy 510-05-66-20

(Revised 7/1/09 ML #3183)

In order for a long-term care insurance policy to be considered a Partnership Policy (including a certificate issued under a group insurance contract) the policy must satisfy all of the following requirements:

The policy must be a qualified long-term care insurance contract, as defined in the Internal Revenue Code of 1986. The majority of all long-term care policies legally sold in North Dakota already meet this requirement.
The policy must be issued on or after January 1, 2007 which is the effective date of the North Dakota Long Term Care Partnership Program. A policy issued prior to January 1, 2007 is treated as newly issued and eligible for Partnership Policy status only if it is reissued or exchanged on or after January 1, 2007. The addition of a rider, endorsement, or change in the schedule page to policies issued prior to January 1, 2007, may be treated as an exchange for the purpose of meeting the Long Term Care Partnership requirements.
The policy must cover an insured individual who was a resident of the state when coverage first became effective under the policy.
The Federal consumer protection requirements of the Social Security Act must be met with respect to the policy. The majority of all long-term care policies legally sold in North Dakota already meet this requirement.
The policy must include the proper inflation protection based on the insured individual’s age at the time the coverage became effective.

If the policy was sold to an individual who was under age 61 on the date of purchase, the policy must provide compound annual inflation protection. There is no set minimum percentage level. Compound inflation protection must continue on the policy and may only end when the policy doubles, or when the insured individual reaches age 76, whichever occurs first;
If the policy was sold to an individual who was age 61 but had not attained age 76 as of the date of purchase, the policy must provide some level of inflation protection. There is no set minimum percentage level. Inflation protection, which can include simple interest inflation protection, must continue on the policy and may only end when the policy doubles, or when the insured individual reaches age 76, whichever occurs first; and
If the policy was sold to an individual who had attained age 76 as of the date of purchase, no inflation protection is required.

A partnership Policy issued in North Dakota will be identified by a notice to the policy holder (from the insurer) that certifies it as a Partnership Policy at the time the policy is issued. The notice will be issued if the policy meets all of the above criteria, including the inflation protection requirements. Because policies may be changed after they are issued, when an individual applies for Medicaid, they will need to obtain and provide a current notice from the insurer indicating whether the policy continues to meet the Partnership Policy requirements, and if so, to identify the amount of benefits paid while meeting those requirements.