The new mandated LTC NAIC/Partnership Training “One Year Later………………….. Where’s the Beef?” presented by CLTC Partnership Training Intro

Our Sponsors The Corp for LTC Certification CLTC Partnership Training ClearCert Our sponsors today are the CLTC program. With over 16,000 graduates CLTC is the recognized leader in LTC training. CLTC Partnership Training in the past 18 months have certified thousands of agents for the new mandated LTC training requirement CleraCert, the only independent, 3rd party organization dedicated to the NAIC/Partnership Training guidelines and state specific requirements

Issues addressed What is a Partnership policy ? Which states have adopted new LTC training requirement? What training options are available ? What if I have licenses in multiple states? How do I know the training is compliant? What new states are imposing this training in 2009?

Goal of Partnership Plans To encourage public/private partnerships between carriers and states which would allow purchasers to protect assets from Medicaid spend down. Intent is to encourage the purchase of private insurance for long-term care and reduce dependence on Medicaid

Original Partnership States Connecticut: Dollar-for-Dollar Model California: Dollar-for-Dollar Model New York: Dollar-for-Dollar or Total Indiana: Dollar-for-Dollar or Total

OBRA 1993 vs DRA 2005 Omnibus Reconciliation Act of 1993 included the Waxman Amendment which effectively blocked development of additional LTC Partnership Programs. Existing programs were grandfathered Deficit Reduction Act of 2005 repealed this and opened the door for Partnership state expansion

State Requirements DRA allows each state to implement a Partnership program. States must file a State Plan Amendment (SPA) to request federal approval to make changes to their Medicaid program. New Partnership plans will be more uniform than original four states but still have room for some variations

Partnership vs Non-Partnership Policies Policies are virtually the same Partnership plans have the option of protecting a portion of their assets if they choose to apply for Medicaid – Asset Disregard (protected amount will be the inflated benefit amount) Policies will be priced the same as non-partnership policies.

Inflation Protection Requirements Partnership Policies Inflation Protection Requirements This is the key aspect over which the agent has control! If you include at least the minimum required inflation coverage, the policy will be issued as a Partnership policy!

Minimum Inflation Requirements Inflation requirements clearly defined: Age 60 and under: Some form of compound inflation protection Age 61 – 75: Some form of inflation protection must be included Age 76 +: May offer inflation protection (not required for application)‏ Check with your insurer for product availability

Example of Asset Disregard Partnership Policy Assets Partnership Plan Medicaid Payout Spend Down Required Example 1 $ 150,000 $150,000 $ 0 Example 2 $ 200,000 $150,000 $ 50,000 Example 3 $1,000,000 $400,000 $600,000 Non-Partnership Policy Example 4 $200,000 $0 $200,000

Partnership Policy Requirements Partnership Product Certification —existing policies certified by state DOI as meeting policy requirements Grandfathering—not allowed. Partnership policies must have an effective date later than the state’s Partnership effective date Exchanges – allowed on state basis

Reciprocity for Asset Protection DRA allows for reciprocity – determined by each state States may not recognize asset protection States may not be Partnership states

NAIC States vs. Partnership States States adopting Partnership Plans also mandate the new LTC Agent Training requirement States may adopt the new Training requirement without adopting Partnership status The new NAIC/Partnership Training is here to stay: 8 hours initial 4 hours every 24 months

Current States with new Training Requirements FL ND ID NE ME OH MD OR MN RI MO SD MT VA

Training Deadlines 2009 AR OK AZ PA CO SC GA TN IA TX IL WA NJ WI

4 Key Questions What is the training requirement for my state? How do I know the course complies? What about reciprocity? What’s the most efficient way to complete this new training?

ClearCert Independent resource for the LTC industry Posts state training regulations and updates Lists course reviews and state approvals Agent Reciprocity Tracker for multi-state licenses

www.ClearCert.com .

Training Options Classroom On-Line (Self study)

Why CLTC Partnership Training? Classroom CLTC certified Instructors LTC Planning philosophy Instructors share personal experiences

Why CLTC Partnership Training? On-Line Training…… “The Flash” Not just text, but Flash technology Study at your own pace No time requirements Take the exam when ready

www.CLTCPartnershipTraining.com

Q & A www.CLTCPartnershipTraining.com