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

2. 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

3. 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?

4. 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

5. 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

6. 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Deficit Reduction Act of 2005 repealed this and opened the door for Partnership state expansion

7. 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

8. 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.

9. 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!

10. 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

11. 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

12. 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

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

14. 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

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

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

17. 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?

18. 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

19. .

20. Training Options
Classroom
On-Line (Self study)

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

22. 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

24. Q & A