More on Minnesota
The population of Minnesota is growing older and the State has instituted a plan to tackle the problem of the lack of Long Term Care Insurance coverage for its residents. They have set up Minnesota Long Term Care Insurance partnership program between private industry and the State to encourage residents of Minnesota to prepare for their future long-term care needs. Awareness of the need for Long Term Care Insurance remains low in Minnesota, as in the rest of the country. Long Term Care Insurance covers the cost of services such as nursing homes, in-home care and assisted-living care when one is unable to care for themselves and is not covered by regular health insurance and only by Medicaid if one qualifies, which can be difficult without exhausting all of your assets.
The Minnesota Long Term Care Partnership allows:
Minnesotans who do not have long-term care insurance can have the state pay for their long-term care through the state’s Medical Assistance (MA) program, but only if they meet certain asset limits. This means they must first use all of their own income and assets to pay for their care before the state will begin paying. Once on MA, a person is only able to keep some of their income for personal needs and for supporting certain family members, but must use their remaining income to pay for their care.
A recent study found that 7 in 10 Americans have made no plans for long-term care and many were not even aware of this type of insurance and what it covers. And, given that the Department of Health and Human Services estimates that 2/3 of all Americans will need long-term care at some point after they pass age 65, this does, indeed, constitute a problem to be reckoned with. Many Americans, regardless of the State in which they live, are now at risk of having to exhaust their nest egg or rely on their children or other relative to care for them in retirement should they become unable to care for themselves.
Via the Minnesota Long Term Care Partnership, residents of Minnesota are able to purchase Long Term Care Insurance with a number of policy options that meet certain State-mandated criteria and unlike earlier Partnership programs in other states, Minnesota’s program does not require minimum lifetime or daily maximums. Minnesota, like many states, aims to reward those who do their part in solving this problem of Long Term Care Insurance coverage by planning ahead and protecting themselves and their assets.
Highlights and requirements of the Partnership Program include:
- Meet the requirements for being tax qualified as defined in
Section 7702B(b) of the Internal Revenue Code
- Meet certain consumer protection requirements in
Section 6021(a)(1)(B)(5)(A) of the Deficit Reduction Act, which are taken from the NAIC model act of 2000
- Provide coverage to a person who was a resident of Minnesota when coverage first became effective
- Provide inflation protection if the person is under age 76:
- For issue ages under 61: If a policy is sold to a person under the age of 61, it must provide compound annual inflation protection. Inflation protection must be continued until at least age 66 to be considered meaningful protection allowing the policy to maintain Partnership status.
- For issue ages 61 through 75: If a policy is sold to a person aged 61 through 75, the policy must provide some level of inflation protection. Inflation protection must continue for the first five consecutive years following the date of purchase, or until age 76, whichever occurs first, to be considered meaningful protection allowing the policy to maintain Partnership status. After the first five years, a policy sold to a person aged 61 through 75 may, but is not required to, provide inflation protection to maintain Partnership status.
You can start planning today for your future long-term care needs and securing all that you’ve worked so hard to achieve for your retirement by purchasing a Long Term Care Insurance policy. LTC Tree can assist you in finding a plan through the Minnesota Long Term Care Partnership Program that is right for you, no matter your age or financial status. If you have been thinking about the program and like to learn more about our affordable Minnesota Long Term Care Insurance Partnership policies, simply fill out the form below. Thank you for reading today’s blog. We really appreciate it.