Federal Partnership Program
The State of New Hampshire has joined the majority of states in participating in the federal/state long-term care partnership program. The federal Deficit Reduction Act of 2005 gave the states the authority to set up a partnership plan to encourage and reward consumers who have qualified long-term care insurance and give them additional asset protection.
The incentive is a special asset disregard provision which allows participants to “immunize” assets from the Medicaid (Granite Care) spend-down should their insurance benefits be depleted. This is a partnership between the State of New Hampshire, the insured, and certain insurance companies that have instituted consumer protection enhancements and reporting requirements.
With a New Hampshire Long-Term Care Partnership approved policy, under the asset disregard provision, assets equal to what a policy paid out in benefits will be disregarded for the purpose of determining Medicaid eligibility and spend down. As an example, with a modest insurance policy that pays $300,000, the insured would have an equal amount ($300,000) in assets disregarded. This gives many policyholders peace-of-mind knowing they will never entirely exhaust their estates. 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 New Hampshire. This means if you move from or to New Hampshire your partnership asset protection follows you as well.
Medicaid (Granite Care)
Long-Term Care Medicaid spend down is $2,500. A spouse’s minimum asset allowance is minimum of $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 $595,000.
For more information about the Medicaid program visit www.medicaid.gov.
Rate Stability Rules
In addition, New Hampshire 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 New Hampshire
Several product options are approved in New Hampshire for Long-Term Care planning. These include traditional plans, including partnership certified policies and asset-based “hybrid” policies.
There are no state tax incentives available in New Hampshire at this time. Federal tax incentives are available.
*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.