The State of Washington participates in the federal/state long-term care partnership program. The program, as authorized by federal law, provides “dollar-for-dollar” asset protection if a policyholder exhausts the benefits from his/her qualified LTC insurance policy.
The Long-Term Care (LTC) Partnership Program is a joint Medicaid/private company venture designed to encourage individuals to purchase long-term care insurance so families can protect savings and the state government can protect the budget for the Medicaid program. When people plan for their own long-term care expenses with private LTC insurance, it places less pressure on the state programs that would otherwise need to provide assistance for those expenses.
This allows families to protect their assets for estate preservation in an amount equal to the benefits paid by the qualified long-term care policy. For example, if your Washington Long-Term Care Partnership policy paid $300,000 in benefits that same amount would be disregarded in the calculation for the spend down requirements for Medicaid.
Long-Term Care Medicaid spend down is $2000. A spouse’s minimum asset allowance is $54,726.
Most states have reciprocity with other states' long-term care partnership programs including Washington. This means if you move from or to Washington your partnership asset protection follows you as well.
Washington does not offer any state tax incentive for qualified long-term care insurance. Federal tax incentives are available.
A variety of products are approved in Washington for Long-Term Care planning.
|Home Health Aide||Average Monthly Rate||$5,339|
|Homemaker Services||Average Monthly Rate||$5,339|
|Adult Day Care||Average Monthly Rate||$1,408|
|Assisted Living||Average Monthly Cost||$5,135|
|Skilled Nursing Home||Semi-Private Monthly||$8,669|
|Skilled Nursing Home||Private Average Monthly||$9,718|