Inflation protection is one of the most significant and controversial features in Long-Term Care Partnership insurance. Indeed, the four original Partnership states — California, Connecticut, Indiana, and New York — all required compound 5% inflation protection and viewed that requirement as the single most important feature that distinguished Partnership from non-Partnership insurance. Without this feature they felt that both the consumer and the state were at much greater risk of not having adequate protection when long-term care was eventually needed.
This technical assistance brief outlines considerations for states in developing inflation protection requirements for Long-Term Care Partnership programs. It is the first in a series of technical assistance briefs produced through CHCS’ Long-Term Care Partnership Expansion project. This brief was made possible by support from the Robert Wood Johnson Foundation.