Federal Partnership Program
The State of Missouri participates in the long-term care partnership program which was authorized under federal law to provide the states and their citizens the ability to protect assets from the high costs of long-term care. A Missouri Long-Term Care Partnership policy makes it easier to qualify for Medicaid if you have exhausted the benefits of your long-term care insurance policy.
States are empowered to develop partnerships using the “dollar for dollar” model. For every dollar that a long-term care partnership insurance policy pays out in benefits, a dollar of personal assets can be protected from Medicaid spend-down requirements. In other words, if your long-term care partnership policy paid out $200,000 for your long-term care, an additional $200,000 of your assets would be disregarded when determining your Medicaid eligibility.
Here is how it works. If your long-term care partnership policy paid out $200,000 for your long-term care, an additional $200,000 of your assets would be disregarded when determining your Medicaid eligibility.
This is referred to as “asset disregard”. Even a small LTC policy, if partnership qualified, can provide substantial asset protection in the event a consumer exhausts all the money from their LTC partnership policy. 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 Missouri. This means if you move from or to Missouri your partnership asset protection follows you as well.
Long-Term Care Medicaid spend down is $5,000. A spouse’s minimum asset allowance is minimum of $26,076 up to a maximum of one-half of countable assets up to $130,380. Your spouse’s minimum monthly income allowance is $2,155. * The home equity limit is $603,000.
For more information about the Medicaid program visit www.medicaid.gov.
Rate Stability Rules
In addition, Missouri 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 Missouri
A variety of products are approved in Missouri for Long-Term Care planning. These include traditional plans, including partnership certified policies, short-duration policies, and asset-based “hybrid” plans.
There are tax benefits available if you have a qualified long-term care insurance policy in place. A resident individual may deduct from each individual’s Missouri taxable income an amount equal to 100% of all non-reimbursed amounts paid by such individuals for qualified LTC insurance premiums to the extent such amounts are not included in the individual’s itemized deductions. A married individual filing a Missouri income tax return separately from his or her spouse shall be allowed to make a deduction pursuant to this section in an amount equal to the proportion of such individual’s payment of all qualified LTC insurance premiums. The director of the department of revenue shall place a line on all Missouri individual income tax returns for the deduction created by this section.
*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.