Non-partnership plans are stand-alone long term policies that do not meet the state specified criteria for a Partnership plan. The same features and benefits of a Partnership plan including coverage for facility and home health care, cost of living riders, spousal discounts, etc. are available with a Non-Partnership contract.

When would a client choose a non-partnership plan?

One reason a client might choose to use a Non-Partnership plan is it enables the client to design a plan that best fits their needs without having to adhere to specified guidelines. For example, the client could choose a very low benefit amount ($3,500/month) with a short duration period (2 years) and no cost of living option. In NY a Partnership plan issued in 2018 has to have a minimum daily benefit of $314/day and a 3.5% minimum COLA. The tradeoff with a Non-Partnership policy is that any assets the client transfers would be subject to the five year Medicaid look back period.

Who are potential clients for this product?

People who are between the ages of 35 – 75. Non-partnership plans are a good fit for clients where the majority of their income is derived from assets that cannot be transferred (e.g., pensions, qualified plans such as IRA’s, 401(k) and 403(b) accounts).