We wanted to share with you news about a new law that may make long term care insurance protection more affordable for many Minnesotans. More people may be able to plan for future long term care needs as the result of Gov. Mark Dayton signing S.F. 997 on May 19th. This bill amends the current requirements for the state’s long term care insurance (LTCI) partnership program and reduces the minimum inflation protection needed for qualification from no less than three percent per year, to no less than one percent per year. This amendment took effect on July 1, 2015.
Dollar for Dollar Asset Protection, Should You Need Long Term Care
To encourage Americans to take more personal responsibility for covering their long term care costs, federal lawmakers have helped design state partnership programs. These partnership programs are now available in the majority of states.
To receive Medicaid assistance under normal standards, applicants must first spend down all of their assets to $3,000 or less. However, with new partnership programs, people who purchase an approved long term care policy will have asset protection, which guards against rules that require people to liquidate assets to get state-funded care.
A partnership-qualified policy enables people to protect one dollar of personal assets for every dollar their policy pays out in benefits. The amount of asset protection is equal to the sum of all benefits paid under the policy when the consumer applies for aid.
This program is about helping people avoid the devastating financial effects of spending or giving away their savings to receive long term care coverage.
This is a win for both the state and consumers. The dollar for dollar asset protection offered by the partnership has always been of great interest to consumers, but inflation riders are often the most costly part of a long term care insurance policy. In fact, premiums for 1% inflation may be one-third less expensive than a policy with 3% compounding. With this change, the partnership program has now opened up to a much larger group of Minnesotans.
If you’ve looked into coverage in the past and didn’t make a purchase, it’s time to look again.
To learn more about Minnesota’s LTCI partnership program, and to receive a complimentary guide on the program, please contact us at 612-454-4400.
