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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 4372  
Subject: LTC Medicaid Asset Protection Date: 2/9/2013 10:24 AM
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(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/
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4139 of 4372
Subject: Re: LTC Medicaid Asset Protection Date: 2/9/2013 5:12 PM
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A few cautions here.

The linked website belongs to someone who wants to sell you something. That doesn't make it bad, but it means grain of salt time. As President Reagan said, trust, but verify.

Medicaid is a Fed/State program, and each state sets much of its own rules. What's applicable to Indiana won't necessarily be applicable to Ohio.

There are age-based limits on the amount of LTC premiums which are deductible at the Federal level, and then only as a Schedule A medical expense subject to the 10% (up from 7.5%) of AGI exclusion. Information is in IRS Publication 502.

State income tax treatment varies.

Phil
Rule Your Retirement Home Fool

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Author: Donna405 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4140 of 4372
Subject: Re: LTC Medicaid Asset Protection Date: 2/9/2013 5:37 PM
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Phil, open the second link, and you can obtain more info.

Donna

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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4141 of 4372
Subject: Re: LTC Medicaid Asset Protection Date: 2/9/2013 8:58 PM
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Here's a non-commercial link I found helpful;
http://www.longtermcare.gov/LTC/Main_Site/Paying/Private_Fin...

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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: 4142 of 4372
Subject: Re: LTC Medicaid Asset Protection Date: 2/11/2013 9:14 AM
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The linked website belongs to someone who wants to sell you something.


Which one?

The one linked to in.gov or the one that provides you links to the various state sites?



Medicaid is a Fed/State program, and each state sets much of its own rules. What's applicable to Indiana won't necessarily be applicable to Ohio.


Hence the second link to the various state sites.

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