UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Hawkwin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 4325  
Subject: LTC Medicaid Asset Protection Date: 2/9/2013 10:24 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 6
(reposted here by request)

For those that have not heard of the Partnership program, it is where your state decides to provide incentive to buy LTC coverage. The states want you to plan smartly for retirement in much the same way they want you to save smartly for college education so they do so by providing financial incentives to those that buy coverage.

In the case of LTC, the states want you to have some coverage so it is less likely you will every use Medicaid.

They do this by protecting your assets based on the amount of coverage you purchase.

http://www.in.gov/iltcp/files/What_You_Should_Know_7-2011.pd...

How does the Medicaid Asset Protection feature work?
If you initially purchase a Partnership policy with less than the State-set dollar
amount* in benefits, one dollar of assets (dollar-for-dollar) is protected for
each dollar of Partnership policy benefits paid out. If you initially purchase
a Partnership policy with at least the State-set dollar amount* and have a 5%
compound inflation factor, all of your assets (total asset) are protected once
the policy has paid out all benefits.
*Chart for State-set dollar amounts is posted on the website and in the back of this booklet.
Can I rely on this asset protection from Medicaid to protect my
assets?
In a word, YES! For example, if you bought a Partnership policy with a
maximum benefit pay-out of $150,800, you could protect $150,800 of your
assets. If you want to protect more or less of your assets, you may select a
policy with a higher or lower benefit pay-out. If you want to protect all
of your assets, you would need to purchase, at a minimum, the State-set
dollar amount of Partnership policy benefits. For married couples, each
spouse would need to purchase his/her own policy for the greatest overall
protection.

----------

You don't pay anything extra for this huge benefit.

For Indiana:
¦2013 Indiana Partnership LTC Policy Requirements
¦Minimum Daily Benefit - $115 per Day
¦Total Asset Policy - Initial Policy Amount at least $291,050

So for the price of a $291k policy, you could protect millions from Medicaid spendown requirements.

Premiums are also tax deductible.

All it would take is for one spouse to require care for a year or two to completely wipe out the savings for many if not most retirees. Even if that spouse dies, it would leaving the remaining spouse with little to no life savings.

State links:
http://w2.dehpg.net/LTCPartnership/
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement