Federal Partnership Program
The State of Rhode Island, like most states, participates in the federal/state long-term care partnership program in order to help families protect assets from the high costs of long-term health care. This “dollar-for-dollar asset protection” provides additional benefit for qualified LTC insurance plans. The state established the Rhode Island Qualified Long-Term Care Insurance Partnership (QLTCIP) program to provide for the disregard of a Medicaid applicant's resources in an amount equal to the benefits paid by their QLTCIP policy in the event they exhaust their policy benefits. The total amount paid by the individual's QLTCIP policy at the time of death is also disregarded in the determination of the amount to be recovered from a beneficiary's estate.
If your Rhode Island Qualified Long-Term Care Insurance Partnership policy paid $425,000 in benefits you would have an equal amount of asset disregard.
The amount that will be protected during estate recovery is the same amount that was disregarded in the eligibility determination. There may be continuing QLTCIP policy payments after Medicaid eligibility is established, so if the person later gains assets, he/she may have more protected than at the time of eligibility. Thus, the total amount paid by the individual's QLTCIP at the time of death is to be disregarded in the determination of the amount to be recovered from a beneficiary's estate.
Most states have reciprocity with other states' long-term-care partnership programs including Rhode Island. This means if you move from or to Rhode Island your partnership asset protection follows you as well.
Long-Term Care Medicaid spend down is $4,000. 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, Rhode Island 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 Rhode Island
A variety of products are approved in Rhode Island for Long-Term Care planning. This includes the traditional plans, including partnership certified policies, short-duration policies, and asset-based “hybrid” policies.
Rhode Island does not offer any state tax incentive for qualified Long-Term Care insurance; however, federal tax incentives are still 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.