The State of South Dakota participates in the federal/state long-term care partnership program. The program, authorized by federal law, provides additional asset protection when a consumer purchases a qualified long-term care insurance policy.
The South Dakota Long-Term Care Partnership Program, administered by the Department of Social Services and Division of Insurance, provides an alternative to spending down or transferring assets by forming a partnership between Medicaid and private long-term care insurers.
This public-private partnership is an innovative program offering individuals quality, affordable long-term care insurance and a way to receive the care they need without depleting all their assets. The greatest and most unique benefit of a Partnership policy is the Medicaid asset protection.
This feature provides “dollar for dollar” asset protection: for every dollar that a partnership policy pays out in benefits, a dollar of assets can be protected from the long-term care Medicaid resource limit. When determining long-term care Medicaid eligibility, any assets you have up to the amount the Partnership policy paid in benefits will be disregarded.
For example, if your Partnership policy paid $200,000 in benefits, South Dakota's Medicaid program would allow you to keep $200,000 in assets and still qualify for Medicaid assistance. The amount of assets you are able to protect under the Partnership is in addition to the $2,000 everyone is allowed to keep, including any assets your spouse may be allowed to retain.
Long-Term Care Medicaid spend down is $2000. A spouse’s minimum asset allowance is $24,720.
Most states have reciprocity with other states' long-term-care partnership programs including South Dakota. This means if you move from or to South Dakota your partnership asset protection follows you as well.
South Dakota does not offer any state tax incentive for qualified long-term care insurance, however, federal tax incentives are still available.
A variety of products are approved in South Dakota for Long-Term Care planning.
|Home Health Aide||Average Monthly Rate||$4,767|
|Homemaker Services||Average Monthly Rate||$4,576|
|Adult Day Care||Average Monthly Rate||$1,538|
|Assisted Living||Average Monthly Cost||$3,500|
|Skilled Nursing Home||Semi-Private Monthly||$6,616|
|Skilled Nursing Home||Private Average Monthly||$7,072|