Joint Oklahoma Information Network Oklahoma Health Care Authority

Agent FAQs

 

What is the Oklahoma Long-Term Care Partnership program?
The Oklahoma Long-Term Care Partnership program allows some asset protection if a partnership product is purchased and the individual later applies for SoonerCare (Oklahoma Medicaid). In a collaborative effort with the Oklahoma Insurance Department and private insurance companies, individuals will have an alternative to depleting or “spending down” their assets should they still need long-term care beyond the benefit period covered by their approved partnership policy.

Will long-term care insurance protect consumer assets?
Consumers may have accumulated assets over their lifetime and may want to protect and preserve them for their family in case something happens.  Buying an Oklahoma Long-Term Care Partnership policy may help protect assets. If an individual has a large amount of assets and does not want to use those assets to pay for long-term care, he or she may want to buy a long-term care insurance policy after consulting with a licensed agent. The National Association of Insurance Commissioners (NAIC) recommends consumers spend no more than 5 percent of their income on a long-term care policy.

What is the difference in long-term care versus traditional medical care?
Someone with a prolonged physical illness, a disability or a cognitive impairment such as Alzheimer’s disease often needs long-term care. Long-term care services may include help with daily activities, home health care, respite care, hospice care, adult day care, and care in a nursing home or assisted living facility.

What is the average cost for long-term care?
In 2007, the average cost for a private room for nursing home care in Oklahoma was $132.85 a day – more than $48,000 a year. The average length of stay in a long-term care facility is two and a half years. 

Will I be able to recognize the differences between an OLTC Partnership policy and a traditional long-term care policy?
Yes. Although an OLTCP policy will look a great deal like a traditional long-term care policy, an applicant for an OLTC partnership policy will receive a "Partnership Program Notice" that outlines the requirements and benefits of a partnership policy. At issue, a partnership policy will be accompanied by a Partnership Disclosure Notice that explains the benefits of an OLTC Partnership policy and indicates that, at the time of issue, the policy is a qualified state long-term care insurance partnership policy.

Are all agents allowed to sell an Oklahoma Long-Term Care Partnership policy?
No, only qualified insurance agents can sell an OLTC Partnership policy. Agents who are trained to sell an OLTC Partnership policy are listed on the OID Web site or you can Click Here.

How do I become an approved insurance agent to sell an OLTC Partnership policy?
Insurance agents who would like to be approved to sell an OLTCP policy are required to complete eight hours of approved long-term care insurance courses. In addition, a four-hour course must be taken every license renewal period. Both courses can be taken via classroom or interactive distance learning offered by continuing education providers. The courses will apply toward the producer’s biennial continuing education requirement. For a list of long-term care and OLTC Partnership courses, please click here.
 
What if a consumer already has a long-term insurance policy in place?
Individuals that already have an existing long-term care policy may be able to exchange it for an OLTCP policy as long as the policy meets the core requirements for an OLTCP policy. Although the Oklahoma Long-Term Care Partnership program allows a policy to be exchanged, it is the decision of the insurer to offer the exchange.


Things to consider when selling an Oklahoma Long-Term Care Insurance Partnership policy

Why consumers should consider purchasing an Oklahoma Long-Term Care Partnership policy

  • What is the maximum benefit of the policy?
  • How long is the elimination period? The elimination period is the number of days paid out-of-pocket before the policy begins to pay.
  • Is the policy tax qualified? All OLTC Partnership policies are tax qualified.
  • Does the policy provide for home health care or adult day services?
  • Medicare covers only a small portion of nursing home and other long-term care costs.
  • The average annual cost of a nursing home in Oklahoma is more than $48,000.
  • There are strict rules and penalties for transferring assets to qualify for SoonerCare (Oklahoma Medicaid).
  • The partnership program will allow individuals to keep additional assets and qualify for SoonerCare.
  • Consumers choose where they receive the care, whether it is in a nursing home or their own home, giving consumers and their families’ peace of mind if they should need long-term care.

Revised June 19, 2008