Maine is one of the smallest states in America with 1.27 million residents. In line with the small population is the rapidly increasing number of adults aged 65 older, they comprised 14.4% of the population or equivalent to 183,000 seniors in the year 2000 alone. Almost one-third of people aged 65 and older are living alone. The 85 and above age group are expected to require long term care services and will grow to about 26 percent between 2000 and 2015. As what have expected in all states, Maine’s senior population is also projected to treble over the next 25 years. By 2025, its elderly population will have reached nearly 77.3 percent. In 2025, 21.4 percent of Maine’s population will be aged 65 years and older compared to the national rate of 18.6%. Maine has faced financial constraints during the two past budgetary crises in 1993 and 2003. In 1993, the state of Maine tried to come up with financial system that would trim down the escalating expenses of Medicaid on institutionalized care or nursing home care. It was the same year also when the state pursued policies that would decrease the heavy dependence on Medicaid and other state-funded programs. In 2003, the state of Maine suffered from labor shortage that affected the overall health care services particularly the long term care industry. The workforce shortage was the effect of the continuous increase in traditional home care plus the state’s effort in using Medicaid funding, which in return, limits the opportunities for workers to get higher compensation benefits. Most workers often receive insufficient training and supervision, so they feel inapt for the job and think that their work is not respected or valued. The labor shortage throughout the state, especially in Southern Maine, made it difficult to recruit workers in the area. Much of Medicaid spending is appropriated to nursing home care. In 2002, the spending for long-term care services for all ages was almost $152 billion. The primary financier for long term care is Medicaid, which paid for almost half of the expenditures in U.S. in 2001. Over 70% of Medicaid’s long-term care expenditures were allocated for nursing homes and institutions or facilities for the mentally retarded. Many residents wish to receive care in their own home, but the state’s financial program is believed to be centralized on institutional care. Many states have expanded their financial system to meet the needs for home and community-based services for elders and the disabled. The state of Maine, regardless of challenges, has pursued its efforts in developing systematized and cost-effective financial program that will target affordable long term care. One of these programs is the Maine Partnership for Long Term Care. This program was established in line with the Deficit Reduction Act (DRA) of 2005 that aims to decrease the dependence on Medicaid. Under Maine’s Long Term Care Partnership Program, policyholders shall meet the requirements specified by the DRA. These rules allow individuals to protect their assets equal to the insurance benefits received from a partnership policy. The asset disregard protection clause allows individuals to be eligible for assistance despite of Medicaid’s asset limit. Partnership policies also have reciprocity feature in which the purchased policy can be used in other states.
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