Alabama participates in the federal/state partnership program. This program provides additional asset protection. In the event that you exhaust your benefits from a qualified Alabama Partnership Long-Term Care policy, the state will provide you dollar-for-dollar asset protection. This would allow you to qualify for Medicaid long-term care benefits while retaining more of your assets than what Medicaid would typically allow.
This means even a small qualified long-term care insurance policy can have powerful asset protection. For example, if the policy paid $150,000 in benefits that same amount will be “disregarded” from the spend-down requirements. For many, this can protect a large part of their estate.
Long-Term Care Medicaid spend down is $2000. A spouse’s minimum asset allowance is $27,000.
Most states have reciprocity with other states' long-term-care partnership programs including Alabama. This means if you move from or to Alabama your partnership asset protection follows you as well.
A state tax deduction is allowed for the amount of premiums paid pursuant to a qualifying insurance. Federal tax incentives also may apply.
A variety of products are approved in Alabama for Long-Term Care Insurance planning.
|Home Health Aide||Average Monthly Rate||$3,241|
|Homemaker Services||Average Monthly Rate||$3,241|
|Adult Day Care||Average Monthly Rate||$758|
|Assisted Living||Average Monthly Cost||$3,271|
|Skilled Nursing Home||Semi-Private Monthly||$6,279|
|Skilled Nursing Home||Private Average Monthly||$6,661|