Michigan Long-Term Care

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Michigan now participates in the federal/state partnership for long-term care program. The Michigan Partnership Program is a partnership between state government and private insurance companies to assist individuals in planning for their long-term care needs. Insurance companies must follow state and federal guidelines, and agents must be licensed and trained to sell partnership policies. The idea is to provide a consumer with financial protection for the costs of long-term care with a safeguard for additional asset protection known as “dollar-for-dollar” protection or “asset disregard.”

Long-Term Care Insurance policies that qualify for the Michigan Long-Term Care Partnership Program may protect the policyholder’s or certificate holder’s assets through a feature known as “Asset Disregard” under Michigan’s Medicaid program. Asset Disregard means that the amount of a policyholder’s or certificate holder’s assets equal to the amount of long-term care benefits received under a qualified Michigan Partnership Program insurance policy will be disregarded for the purpose of determining the insured’s eligibility for Medicaid. This generally allows a person to keep assets equal to the insurance benefits paid on his/her behalf under a qualified partnership policy. 

Long-Term Care Medicaid spend down is $2500. A spouse’s minimum asset allowance is $24,720.

There are no current state tax incentives for long-term care insurance, federal tax incentives still apply.

A variety of products are approved in Michigan for Long-Term Care planning.

Michigan Long-Term Care Costs

Home Health Aide Average Monthly Rate $4,385
Homemaker Services Average Monthly Rate $4,195
Adult Day Care Average Monthly Rate $1,733
Assisted Living Average Monthly Cost $3,850
Skilled Nursing Home Semi-Private Monthly $8,562
Skilled Nursing Home Private Average Monthly $9,125