The state of Utah is posed to pass a bill that helps incentivize the purchase of Long Term Care Insurance and prepare state residents for the risk of long term care.
S.B. 14 was sponsored by Senator Todd Weiler (R- Woods Cross) and introduced in the Senate on January 27th. The bill authorizes the Department of Health to set up a Long Term Care Partnership Plan for the state of Utah. It passed in the Senate on February 10th and in the House on February 26th. S.B. 14 is now awaiting the signature of Utah Governor Gary Herbert.
The bill isn’t the first of its kind. Most states nationwide have similar programs already set up and by creating their own partnership program, Utah is simply catching up with the times. These types of programs help provide incentives for state residents to purchase Long Term Care Insurance by granting a Medicaid spend down waiver should they ever exhaust their policy and need more care.
To qualify for Medicaid, you must first meet basic eligibility standards, one of which requires that you have essentially no financial assets to your name. Long Term Care Insurance Partnership programs encourage people to buy a policy and then if they end up needing care for longer than their policy allows, they won’t be forced to meet the poverty levels typically needed to enroll in Medicaid.
The need for long term care continues to grow nationwide and the number of people receiving long term care in the US is expected to rise from 12 million in 2012 to 27 million in 2050. Considering 1 in 2 Americans will need long term care at some point, it makes sense to plan for this potential health risk.
Long Term Care Insurance
Long Term Care Insurance provides coverage for care received in a nursing home, assisted living facility, or in home care. A policy helps protect your assets from the high cost of care, which currently averages anywhere from $40,000 to $80,000 annually, depending on the care setting. Insuring against the risk of long term care helps ensure you won’t be forced to pay for care out of pocket or turn to a loved one to provide you with unpaid care.
You can read more about who needs long term care and why here or find out if Long Term Care Insurance is right for you. If you are interested in learning more about the cost of a policy, request a free quote comparison and we will be in touch with you shortly to help you shop the market without a sales meeting.
You can view the full text of the Utah Long Term Care Insurance Partnership Program bill, S.B.14, here.