Oregon Long Term Care Insurance Information & Statewide Cost Data
According to Genworth Financial's 2010 Cost of Care, Long Term Care expenditures in the state of Oregon have been significantly increasing in the last five years. Home health aide services rose by 36% in OR /WA - Portland-Salem while nursing home rates increased by 8%. Below are the rates of various Long Term Care settings in some areas in Oregon:
|Region||Homemaker Services Hourly Rate
|Home Health Aide Hourly Rate
|Assisted Living Facility Monthly Rate
|Nursing Home Daily Rate
|Nursing Home Daily Rate
|Portland - Vancouver - Beaverton||$21||$21||$3,700||$225||$250|
|Rest of State||$19||$20||$4,075||$222||$239|
Medicaid is Oregon's financial assistance program for eligible, low-income residents. Medicaid may help pay for Long Term Care. However, Oregonians must have no more than $2000 in assets to become eligible.
To address this major concern, Senate Bill 191 (ch 486) was passed during the 74th Oregon Legislative Assembly in 2007. The State Plan Amendment was approved by the Centers for Medicare and Medicaid Services, enabling Oregon's Medicaid program to participate in the federal Long-Term Care Insurance Partnership Act. The Oregon Long-Term Care Partnership Program was finally established, with effective date of January 1, 2008.
Oregon Long Term Care Insurance Partnership Program
The Oregon Long Term Care Partnership Program is a partnership program between the State of Oregon and private insurance companies. The program offers qualified insurance policies that allow policyholders to protect assets if they need to apply with Medicaid after exhausting their insurance benefits. The amount of assets that will not be counted towards Medicaid eligibility is the dollar amount of insurance benefits received from the Partnership policy. It is also the amount of assets that can not be later claimed by the state under the Medicaid estate recovery.
The Partnership program is jointly administered by two state agencies. The Oregon Department of Human Services oversees the Medicaid program in Oregon. The Insurance Division under Oregon's Department of Consumer and Business Services, on the other hand, oversees insurance companies authorized to offer and market Long Term Care insurance policies in Oregon, including Partnership policies.
Long Term Care Partnership Policy
Long Term Care insurance policies that meet Partnership requirements are called Qualified Partnership Policies or QPP. These insurance policies must meet certain state and federal requirements.
- Inflation Protection - All Partnership policies include inflation protection. Levels of inflation protection vary according to the ages of policyholders. Inflation protection allows Partnership policies to keep up with rising care costs.
- Tax-Qualified - A Partnership policy must be a qualified Long Term Care insurance policy as defined in section 7702B(b) of the Internal Revenue Code of 1986. Thus, premiums paid for Partnership policies may be deducted from state and federal income tax returns. Benefits received from Partnership policies are likewise exempted from taxation.
- Consumer protection requirements
- Policyholder should be a resident of Oregon when coverage became effective.
All QPPs include a written verification that indicates, at the time of issue, the policy is a Partnership policy. The policyholder is also informed of the total payments received through "explanation of benefits" or EOB. Any remaining benefits are likewise included.
A status of a Partnership policy may change. A policyholder may make changes that will affect or result to loss of a Partnership status. Thus, it is important to consult with your insurance agent before making changes.
It is also important to consult your agent before moving to another state to ensure that your state of destination recognizes Partnership policies from Oregon to avoid problems in line with the Medicaid asset protection. QPPs are transferrable from state to state.
Obtaining a Partnership Policy in Oregon
Partnership policies have been sold since January 2008. They may be obtained from insurance carriers licensed by the Oregon Insurance Division and are only sold through licensed insurance agents who have completed Partnership training. Participating insurance companies in Oregon are listed below:
- American General Life Insurance Company
- Assurity Life Insurance Company
- Berkshire Life Insurance Company
- Country Life Company
- Equitable Life and Casualty Insurance Company
- Genworth Life Insurance Company
- John Hancock Life Insurance Company
- LifeSecure Insurance Company
- Massachusetts Mutual Life Insurance Company
- Metropolitan Life Insurance Company
- Minnesota Life Insurance Company
- Mutual of Omaha Insurance Company
- State Farm Mutual Automobile Insurance Company
- Sterling Life Insurance Company
- Transamerica Life Insurance Company
- United HealthCare Insurance Company
- United of Omaha Life Insurance Company
For further information, you may contact your local county department of job and family services or local department agency on aging.
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