Federal Partnership Program
Under the Connecticut Partnership Program, private insurance companies competitively sell special long-term care insurance policies. These policies not only offer benefits to pay for long-term care costs, but they also offer Medicaid Asset Protection should you ever need to apply to Connecticut's Medicaid Program for assistance.
To help you plan for your financial future, the State of Connecticut has joined forces with private insurance companies to form the Connecticut Partnership for Long-Term Care.
For most people, it is unpleasant to think about needing nursing home or home care when they get older. No one is immune to this possibility. Even more unpleasant is the likelihood that you will have to sacrifice your life's savings to pay for that care -- if you don't plan ahead. The Connecticut Long-Term Care Partnership Program provides additional dollar-for-dollar asset protection so whatever your policy pays in benefits will be disregarded in the spend-down requirements for Medicaid.
In this example a policy pays out $650,000 in benefits when the benefits are exhausted, however, you are still living and require long-term care services. The state will disregard that same amount in the calculation for the Medicaid Long-Term Care benefit. This way you are able to keep a substantially larger amount of savings then you would otherwise be allowed to keep and still qualify for Medicaid. The Partnership Program also protects those assets after death from Medicaid estate recovery.
Most states have reciprocity with other states' long-term-care partnership programs including Connecticut. This means if you move from or to Connecticut your additional partnership asset protection will be honored.
Long-Term Care Medicaid spend down is $1,600. A spouse’s minimum asset allowance is $25,728 up to a maximum of one-half of countable assets up to $128,640. Your spouse’s minimum monthly income allowance is $2,113.75 * The home equity limit is $893,000.
For more information about the Medicaid program visit www.medicaid.gov.
Products Approved in Connecticut
A variety of affordable products are approved in Connecticut for Long-Term Care planning. These include traditional plans, including partnership certified policies, short-duration plans, and asset-based “hybrid” policies.
Connecticut does not, at this time, have any state tax incentive available. However, federal tax incentives are available for some people and businesses.
*The federal government sets a new minimum and maximum amounts each year, but states can set their own minimum requirements at any level between the federal limits. This information is based on the best available sources.