The State of New York was one of the four original long-term care partnership states. The New York State Partnership for Long Term Care is a program that combines private LTC Insurance and Medicaid Extended Coverage. The purpose of the program is to help residents of New York prepare financially for LTC services (nursing home care, home health care, and assisted living). If you buy a New York State Long Term Care Partnership policy and use the benefits according to the conditions of the program, you can apply for MEC, which may assist in paying for your on-going care. Unlike regular Medicaid, MEC allows you to protect some or all of your assets, depending on whether you select a Dollar for Dollar Asset Protection plan or a Total Dollar Asset Protection plan. However, MEC does require that you contribute your income to the cost of your care according to Medicaid income rules.
Long-Term Care Medicaid spend down is $4150. A spouse’s minimum asset allowance is $74,820.
Most states have reciprocity with other states' long-term-care partnership programs including New York. This means if you move from or to New York your partnership asset protection follows you as well. In reciprocal states, Total Dollar Asset Plans will be considered Dollar for Dollar Plans, or plans that allow for the disregard of assets under Medicaid up to the total amount of benefits paid out by the insurer on behalf of the covered person.
To see a map of states that participate in reciprocity, click here: http://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-State/By-State.html
New York State offers state tax incentives as well.
Determination of adjusted gross income generally conforms to the federal income tax code.
A credit for personal income tax is allowed equal to 20% of the premium paid during the taxable
year for qualified LTC insurance. A credit is allowed against the corporation tax equal to 20% of the premiums paid during the taxable year for qualified LTC insurance. The credit may not reduce the tax payable to less than the state minimum tax, but any excess credit may be carried forward. An S-corporation is allowed a credit against the personal income tax
A variety of products are approved in New York for Long-Term Care planning.
|Home Health Aide||Average Monthly Rate||$4,528|
|Homemaker Services||Average Monthly Rate||$4,290|
|Adult Day Care||Average Monthly Rate||$1,733|
|Assisted Living||Average Monthly Cost||$3,988|
|Skilled Nursing Home||Semi-Private Monthly||$11,076|
|Skilled Nursing Home||Private Average Monthly||$11,701|