Navigating Long-Term Care in Nebraska

Nebraska participates in the federal/state long-term care partnership program, offering those with a qualified LTC Insurance policy dollar-for-dollar asset protection. Quality care options are available statewide, and several insurance solutions are available.

There are a variety of quality care options available throughout Nebraska. However, long-term health care costs are rising, especially in rural areas. These rapidly increasing costs for care services 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 Nebraska 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 Nebraska have several consumer protections in addition to state and federal tax benefits.

Federal Partnership Program

The State of Nebraska participates in the federal/state long-term care partnership program established under the authority of the Deficit Reduction Act of 2005. The program offers additional asset protection, known as “dollar-for-dollar” asset protection if you have a qualified long-term care insurance policy.

A Nebraska Long-Term Care Partnership Policy is a tax-qualified long-term care policy (group insurance contracts include a certificate with policy issue) which would result in an asset disregard. For the purpose of determining the policyholder's eligibility for Medicaid after the policy benefits are exhausted, the asset disregard is equal to the amount of long-term care benefits received under a Nebraska Partnership Policy.

Policy Example

This allows a person to keep assets equal to the amounts received under a qualified Nebraska Partnership Policy without affecting the person’s eligibility for Medicaid. So, if your Nebraska Partnership Long-Term Care policy pays out $425,000 in benefits you would have $425,000 in asset disregard above the normal allowance when they compute your eligibility for the Medicaid Long-Term Care benefit. 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 Nebraska.  This means if you move from or to Nebraska your partnership asset protection follows you as well.

Medicaid

Long-Term Care Medicaid spend down is $4,000. 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 $2,155. * The home equity limit is $603,000.

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

Products Approved in Nebraska

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

Tax Incentives

There is a state tax incentive, in addition to federal tax incentives, to encourage consumers to purchase a qualified long-term care insurance policy.

The law allows a state income tax deduction for The Nebraska Long-Term Care Savings Plan contribution of up to $2,000 per married filing jointly returns or $1,000 for any other return, to the extent not deducted for federal income tax purposes.

Reverse Mortgages in Nebraska

Reverse mortgages are available in Nebraska. 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, Nebraska has many rules 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.}