More on Nebraska
Nebraska, among many states, has instituted a program to tackle the problem of lack of Long Term Care Insurance coverage for its residents via a Long Term Care Insurance partnership program between private industry and the State. With the population of Nebraska, like the rest of the country, rapidly aging and awareness of the need for Long Term Care Insurance remaining low, an impending financial crisis in coverage for long-term care services is on the horizon. 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 Nebraska Long Term Care Insurance partnership program offers tax qualified long-term care insurance policies (including a certificate issued under a group insurance contract) which would result in an asset disregard equal to the amount of long term care benefits received under a Partnership Policy for the purpose of determining the policyholder’s eligibility for Medicaid after the policy benefits are exhausted.
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.
Residents of Nebraska are able to participate in the Nebraska Long Term Care Insurance Partnership Program via a number of policy options that meet certain State-mandated criteria. Nebraska, 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. Basically, the Nebraska Long Term Care Insurance Partnership plan works like this: purchasers of partnership policies are eligible for Medicaid asset protection which means that Partnership Plans help provide you with asset protection in the event you use your policy benefits and need to seek continued benefits through Medicaid. This enables partnership policyholders to shield their assets should they need to apply for Medicaid as normally one is required to exhaust all assets before qualifying for Medicaid’s long-term care coverage.
Highlights and requirements of the Partnership Program include:
- Must be qualified under federal tax law.
- Must have a valid issue date. The policy must have been issued after July 1, 2006, the effective date of the Nebraska Long Term Care Partnership Program.
- Must be for a vaild State of resident. The policy must cover an insured who was a resident of Nebraska when coverage first became effective under the policy.
- Meet strtict consumer protection requirements. The Federal consumer protection requirements of Section 191 7(b)(1)(C)(iii)(III) of the Social Security Act (42 U.S.C. 1396p(b)(1)(C)(iii)(IH)) must be met with respect to the policy.
Inflation protection. With respect to inflation protection, if the policy is sold to an individual who has not attained age 61 as of the date of purchase, the policy must provide compound annual inflation protection. If the policy is sold to an individual who has attained age 61 but has not attained age 76 as of the date of purchase, the policy must provide some level of inflation protection. If the policy is sold to an individual who has attained the age of 76 as of the date of purchase, no inflation protection is required.
The inflation protection requirements are crucial here. Inflation protection insures that your policy will pay out in tomorrow’s dollars and that your covered for the care you need. More information on the Nebraska Partnership Program for Long Term Care Insurance can be found here and a list of certified partnership policies can be found here (link to:
You can start planning today for your future long-term care needs and securing all that you have 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 Nebraska Long Term Care Insurance Partnership Program that is right for you, no matter your age or financial status. If you would like to learn more about an affordable Nebraska Long Term Care Insurance Partnership policy, simply fill out the form at the bottom of the page. Thank you for reading today’s blog. We really appreciate it.