Navigating Long-Term Care in Missouri

Missouri participates in the Long-Term Care Insurance Partnership program. Owners of qualified LTC Insurance can enjoy dollar-for-dollar asset protection from future costs of extended health care. The cost of care is increasing every year.

There are a variety of quality care options available throughout Missouri. However, long-term health care costs are rising. These rapidly increasing costs for care services throughout the state are becoming burdensome on residents and their families for those who do not have Long-Term Care Insurance.

The variety of quality care options available throughout Missouri for those who require long-term health care services include:

• adult day care centers
• assisted living facilities
• continuing care retirement communities
• home health care providers
• memory care facilities
• rehabilitation facilities
• traditional nursing homes

Top insurance companies have several insurance options to help residents safeguard income and assets, protect lifestyles, and preserve a legacy. Plus, policyholders will have access to quality care options giving loved ones the time to be family instead of caregivers.

Plus, all tax-qualified Long-Term Care Insurance policies in Missouri have several consumer protections in addition to federal tax benefits.

Federal Partnership Program

The State of Missouri participates in the long-term care partnership program which was authorized under federal law to provide the states and their citizens the ability to protect assets from the high costs of long-term care. A Missouri Long-Term Care Partnership policy makes it easier to qualify for Medicaid if you have exhausted the benefits of your long-term care insurance policy.

States are empowered to develop partnerships using the “dollar for dollar” model. For every dollar that a long-term care partnership insurance policy pays out in benefits, a dollar of personal assets can be protected from Medicaid spend-down requirements. In other words, if your long-term care partnership policy paid out $200,000 for your long-term care, an additional $200,000 of your assets would be disregarded when determining your Medicaid eligibility.

Policy Example

Here is how it works.  If your long-term care partnership policy paid out $200,000 for your long-term care, an additional $200,000 of your assets would be disregarded when determining your Medicaid eligibility.

This is referred to as “asset disregard”. Even a small LTC policy, if partnership qualified, can provide substantial asset protection in the event a consumer exhausts all the money from their LTC partnership policy. The Partnership Program also protects those assets after death from Medicaid estate recovery.

Reciprocity

Most states have reciprocity with other states' long-term care partnership programs, including Missouri.  This means if you move from or to Missouri your partnership asset protection follows you as well.

Medicaid

Long-Term Care Medicaid spend down is $5,035. A spouse’s minimum asset allowance is minimum of $26,076 up to a maximum of one-half of countable assets up to $130,380.   Your spouse’s minimum monthly income allowance is $2,178 * The home equity limit is $603,000.

For more information about the Medicaid program visit www.medicaid.gov.

Rate Stability Rules

In addition, Missouri consumers enjoy additional peace-of-mind as the state has adopted Long-Term Care Insurance Rate Stability Rules.  These rules, developed the National Association of Insurance Commissioners, makes it much harder for an insurance company to get an approved rate increase.

Products Approved in Missouri

A variety of products are approved in Missouri for Long-Term Care planning. These include traditional plans, including partnership certified policies, short-duration policies, and asset-based “hybrid” plans.

Tax Incentives

There are tax benefits available if you have a qualified long-term care insurance policy in place. A resident individual may deduct from each individual’s Missouri taxable income an amount equal to 100% of all non-reimbursed amounts paid by such individuals for qualified LTC insurance premiums to the extent such amounts are not included in the individual’s itemized deductions. A married individual filing a Missouri income tax return separately from his or her spouse shall be allowed to make a deduction pursuant to this section in an amount equal to the proportion of such individual’s payment of all qualified LTC insurance premiums. The director of the department of revenue shall place a line on all Missouri individual income tax returns for the deduction created by this section.

LTC Tax

Missouri is one of several states that is considering following the State of Washington in implementing a tax on income for any person who does not own a qualified Long-Term Care Insurance policy.

What is unknown is if they implement the tax plan if they will offer any reasonable time for state residents to purchase qualified policies if they do not already own one. 

It is highly recommended to speak with a qualified specialist to consider your options - Work With a Specialist | LTC News

Reverse Mortgages in Missouri

Reverse mortgages are available in Missouri. A reverse mortgage is a home equity loan where the borrower does not have to make payments.

This type of mortgage can increase monthly income, eliminate mortgage payments, and even fund Long-Term Care Insurance. However, there are many rules in Michigan on these products, and you should seek the help of a qualified and licensed mortgage broker. 

If you have significant equity in your home and you and your spouse are at least 62 years old, you can get a reverse mortgage to turn your equity into funding long-term health care, pay for an LTC Insurance policy, pay bills and add to your retirement lifestyle.

The home must be the principal residence without any tax liens. 

Learn more about reverse mortgages by clicking here.

_{*The federal government sets a new minimum and maximum amounts each year, but states can set their own minimum requirements at any level between the federal limits. This information is based on the best available sources.}