Federal Partnership Program
The State of Hawaii is not yet participating in the federal/state partnership program but it does offer state tax incentives to encourage people to plan for the high costs of long-term health care.
Hawaii does not yet have an active Long-Term Care Partnership Program in place. Therefore, anyone who moves into Hawaii with a Long-Term Care Partnership policy from another state would not have reciprocity in Hawaii. Although their policy benefits would work in the state, the additional asset protection offered through the partnership program would not be honor in the state.
Kūpuna Caregivers Program
Hawaii does offer a unique home care program. In 2018 Governor David Ige signed into law the Kūpuna Caregivers Program. This program assists families with their caregiving responsibilities. This is intended for employed Hawaiian residents who are also unpaid primary caregivers of a senior relative. It provides up to $70 per day to help cover the various costs of long-term care.
The primary caregiver must be providing care for an elderly individual. They must be a citizen of the United States or a qualified resident alien. In addition, they must be 60 years old or older and work outside the home. The individual caregiver is not required to live with the care recipient.
The Care Recipients must be a Hawaii resident who is at least age 60 or older. They must be living in their home, not in a facility like a nursing home, assisted living, or memory care center. They must have a need for help and assistance with at least two Activities of Daily Living (ADLs), such as eating, bathing, and transferring from a bed to a chair, OR two Independent Activities of Daily Living (IADLs), such as housecleaning, preparing meals, and doing laundry, OR one ADL and one IADL OR have a considerable cognitive impairment that requires significant supervision. In addition, they must not be eligible for any other programs that provide home and community-based services. While this is not a complete solution for long-term care, it does provide some help for those who did not plan in advance.
Long-Term Care Medicaid spend down is $2,000. A spouse’s minimum asset allowance is $128,640. Your spouse’s minimum monthly income allowance is $2,432.50. * The home equity limit is $893,000.
For more information about the Medicaid program visit www.medicaid.gov.
Rate Stability Rules
In addition, Hawaii consumers enjoy additional peace-of-mind as the state has adopted Long-Term Care Insurance Rate Stability Rules. These rules, developed the National Association of Insurance Commissioners, makes it much harder for an insurance company to get an approved rate increase.
Products Approved in Hawaii
A variety of products are approved in Hawaii for Long-Term Care planning. These include traditional plans, short-duration policies, and asset-based “hybrid” plans.
State deductions are limited in the same manner as the deduction on the federal level and are also only available to the extent that all medical expenses, including long-term care, exceed 10% of Hawaii Adjusted Gross Income instead of the Federal Adjusted Gross Income.
This deduction is limited in the same manner as the deduction on the federal level and is also only available to the extent that all medical expenses, including long-term care, exceed 10% of Hawaii Adjusted Gross Income instead of the Federal Adjusted Gross Income.
*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.