Long Term Care

The New York State Partnership for Long-Term Care

What is it?

The New York State Partnership for Long-Term Care is a unique program combining
private long-term care insurance and Medicaid Extended Coverage. Its purpose is to help New Yorkers financially prepare for the possibility of needing nursing home care, home care or assisted living services someday. The program allows New Yorkers to protect some or all of their assets (depending on the insurance plan purchased), if their long-term care needs extend beyond the period covered by their private insurance policy.

SAY THAT AGAIN?If you buy a long-term care insurance policy under the Partnership program, and you use 3 years of nursing home care, or 6 years of home care, or some combination of the two, you may apply for New York State Medicaid benefits AND STILL RETAIN ALL YOUR ASSETS. You will, however, have to contribute your income to the cost of your long-term care.

What does this mean to you?

If you buy New York State Partnership for Long-Term Care insurance and use the benefits according to the conditions of the program, you can apply for New York State Medicaid Extended Coverage which may assist in paying for your on-going care. Unlike regular Medicaid, Medicaid Extended Coverage allows you to protect some or all of your assets, depending on whether you select a Dollar for Dollar asset protection plan or a Total asset protection plan. However, Medicaid Extended Coverage does require that you contribute from your income to the cost of your care according to Medicaid income rules.

How is the Partnership a win-win situation?

The Partnership helps New Yorkers pay for their long-term care without having to “spend down” their assets, as they would have to do if they relied totally on Medicaid to pay for their long term care. By allowing New Yorkers to keep what they've worked hard to acquire, and reducing Medicaid costs for the state, the Partnership provides a win-win scenario for everyone.  

Who should consider a Partnership policy?

Partnership for Long-Term Care insurance allows you to choose the care and care setting that meet your care needs, while avoiding financial hardship. A Partnership policy is ideal for someone who will not be able to afford the high cost of long-term care but who can afford the reasonable cost of long-term care insurance. The purpose of the Partnership is to protect personal resources by insuring yourself against the future catastrophic cost of long-term care. Therefore, if you have accumulated some wealth by saving, investment, or growth of value, you may be the best candidate for Partnership insurance. Remember you must continue to pay the premiums and may also be responsible for certain out-of-pocket expenses beyond your policy coverage.

Why consider a Partnership policy today?

Give yourself and your family peace of mind. As long-term care costs increase, quality long-term care insurance is a sensible way to protect your financial and personal independence. The Partnership program will provide Medicaid Extended Coverage benefits once the private insurance benefits have been exhausted. Your income will be used for your care, but your assets are protected, and you have established An option for New Yorkers who want to stay in lifetime care.

Why was the Partnership created?

The Partnership was created to help New Yorkers finance long-term care without impoverishing themselves or signing over their life's savings to qualify for Medicaid, with the accompanying loss of dignity. In the long run, the program will help reduce the State’s Medicaid long-term care burden - over $10 billion in 2002 and growing. The Partnership offers New Yorkers and New York a better option.

Who Is The Partnership For?

While the policies are not a solution for everyone, they may be for you. The State recommends that people of middle age and older consider these policies if they:

• Are generally healthy.
• Are married with a total income minimally in the $40,000-$50,000 range and assets, not including the home, of at least $140,000.
• Are single with a total income of at least $30,000 and assets, not including the home, of at least $60,000.

You should be able to pay for the premiums without diminishing your life-style -- the Partnership was set up to help you protect your assets.

Why should I consider a policy?

• Protect your life savings and stay in control of your assets if long-term care is needed.
• Obtain the long-term care of your choice when you need it, whether in a nursing home or in your home; and
• Maintain your values of responsibility and independence.

The New York State Partnership for Long Term Care Program (NYSPLTC) symbol indicates the coverage advertised complies with New York State (NYS) requirements for participation in the NYSPLTC. However, NYS and the

NYSPLTC do not take part in specific insurer marketing plans, and do not endorse specific insurers or their policies/certificates.

www.nyspltc.org/index.htm

FEDERAL AND STATE TAX CREDITS FOR LONG TERM CARE INSURANCE PREMIUMS

If you pay NYS Income taxes and have Long Term Care Insurance, you may be entitled to a tax credit. This credit is equal to 20% of the premiums paid during the tax year for the purchase of or for continuing coverage under a qualifying long-term care insurance policy.

Premium deductions for your 2017 Federal tax return should be included on your Schedule A. They are as follows:

Taxpayer's Age At End of Tax Year - Deductible Limit

Long term care insurance has become a key element in sound financial planning. If you have not yet done so, you should speak with me regarding this type of plan. Please feel free to call me to set up an appointment.