KRS 304.14-642: Kentucky Long -Term Care Partnership Insurance Program -- Policy

component requirements -- Administrative regulations.

(1) The Kentucky Long -Term Care Partnership Insurance Program is established as a

partnership between the Department for Medicaid Services and the Department of

Insurance to:

(a) Provide incentives for an individual to insure against the cost of providing for

his or her long-term care needs;

(b) Increase utilization of long-term care insurance policies;

(c) Assist in alleviating the financial burden of Kentucky's Medicaid program by

encouraging the use of private insurance; and

(d) Provide a mechanism for individuals to qualify for Medicaid services for costs

of long-term care without exhausting all of their assets and resources.

(2) A long-term care partnership insurance policy shall:

(a) Provide coverage for expenses for at least twelve (12) months for each

covered person on an expense -incurred, indemnity, or prepaid basis for one

(1) or more long -term care services provided in a setting other than an acute

care unit of a hospital;

(b) Be qualified under Section 7702B(b) of the Internal Revenue Code of 1986;

(c) Provide coverage for long -term care services for a policyholder who is a

resident of a state with a qualified long -term care partnership program when

coverage first became effective; and

(d) Not be issued prior to the effective date of an approved amendment to the

State Medicaid Plan.

(3) The Department of Insurance shall have responsibility to approve, pursuant to KRS

304.14-120, any long-term care partnership insurance policy available in Kentucky

that meets and continues to meet all applicable federal and state laws and

regulations. The state shall not impose any requirement affecting the terms or

benefits of such a policy unless the state imposes such requirement on long -term

care insurance policies without regard to whether the policy is covered under the

partnership or is offered in connection with the partnership.

(4) The Department of Insurance shall ensure that any agent who sells a long -term care

partnership insurance policy can demonstrate an understanding of long -term care

partnership insurance and how it relates to other public a nd private coverage of

long-term care expenses. The Department for Medicaid Services shall provide

consultation, materials, and other information to the Department of Insurance to

enable the Department of Insurance to facilitate the development and issuanc e of

uniform training materials for agents who sell long -term care insurance policies.

The Department of Insurance may contract with another entity to conduct agent

training and testing. Training and certification may be conducted at the expense of

the insurance agent.

(5) Within sixty (60) days of notice of approval of the amendment to the State

Medicaid Plan required under KRS 205.619, the Department of Insurance shall

promulgate an administrative regulation pursuant to KRS Chapter 13A to

implement the Kentucky Long-Term Care Partnership Insurance Program.

(6) The Department of Insurance and the Department for Medicaid Services shall

report no later than September 30 each year to the Interim Joint Committee on

Banking and Insurance and the Interim Joint Co mmittee on Health Services on the

number of partnership insurance policies sold in Kentucky, utilization of the

partnership insurance policies, and expenditures and cost savings associated with

implementation, utilization, and maintenance of the partnership program. If national

data reporting standards become available, the report submitted to the federal

agency shall meet the requirements of this subsection.