HF3797

Purpose

The bill changes how a “Partnership policy” is defined for Minnesota’s Partnership for Long-Term Care program. The goal is to broaden which long-term care insurance policies count as partnership policies, making it easier for more policies to participate in the program.

Main Provisions

• Amends Minnesota Statutes 2024 section 256B.0571, subdivision 6, to redefine “Partnership policy.”
• A Partnership policy is now defined as:
  • A long-term care insurance policy that meets the criteria in sections 62S.23 subdivision 1 paragraph b and 62S.312, and
  • Was issued on or after July 1, 2006 or exchanged on or after July 1, 2006 under section 62S.24 subdivision 8.
• The definition also includes a long-term care insurance policy sold prior to July 1, 2015 that has inflation protection between 1 percent and 3 percent.

Significant Changes to Existing Law

• Expands which policies qualify as Partnership policies, by:
  • Including long-term care policies issued or exchanged after July 1, 2006 that meet the specified 62S criteria.
  • Including policies sold before July 1, 2015 that provide inflation protection of 1–3%.
• This broadening potentially increases the number of policies that qualify for partnership-based benefits under the Minnesota Partnership for Long-Term Care program.

Implications for Stakeholders

• Individuals with eligible long-term care policies may see more of their policies recognized as part of the partnership program.
• Could affect eligibility for partnership program benefits and related asset protection in planning for long-term care costs.

Terminology Inclusion

• Partnership policy
• Long-term care insurance policy
• Minnesota Partnership for Long-Term Care program
• Issued on or after July 1, 2006
• Exchanged on or after July 1, 2006
• Section 62S.24 subdivision 8
• Section 62S.23 subdivision 1 paragraph b
• Section 62S.312
• Inflation protection
• 1 percent
• 3 percent
• Sold prior to July 1, 2015
• Minnesota Statutes 2024 section 256B.0571 subdivision 6

Relevant Terms - Partnership policy - Long-term care insurance policy - Minnesota Partnership for Long-Term Care program - Issued on or after July 1, 2006 - Exchanged on or after July 1, 2006 - Inflation protection - 1 percent - 3 percent - Sold prior to July 1, 2015 - 62S.23 subdivision 1 paragraph b - 62S.312 - 62S.24 subdivision 8 - 256B.0571 subdivision 6