Federal Partnership Program
Effective October 1, 2014, Utah authorized participation in their federal/state long-term care partnership program. Utah Long-Term Care Insurance Partnership (LTCIP) policies are insurance policies that will pay for some or all of the client's long-term care medical needs while also allowing a form of asset and estate recovery protection for Medicaid purposes.
The program has yet to be fully implemented. At the moment, no insurance company has filed with the state to be partnership certified. When that happens, these qualified policies will provide dollar-for-dollar asset protection.
When available, a partnership policy provides dollar-for-dollar asset protection in the event you were to exhaust the benefits of your policy. For example, if your policy pad $350,000 in benefits you would have an equal amount of asset-protection when determining your eligibility for Medicaid’s Long-Term Care benefit.
Most states have reciprocity with other states' long-term-care partnership programs including Utah. This means if you move from or to Utah your partnership asset protection follows you as well.
Long-Term Care Medicaid spend down is $2,000. 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, Utah 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 Utah
A variety of products are approved in Utah for Long-Term Care planning. These include traditional plans, short-duration policies, and asset-based “hybrid” plans.
Utah does not offer any state tax incentive for qualified long-term care insurance. However, 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.