Navigating Long-Term Care in Ohio

Ohio 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 Ohio. 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 Ohio 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 Ohio have several consumer protections in addition to state and federal tax benefits.

Federal Partnership Program

The State of Ohio participates in the federal/state long-term care partnership program which was authorized under federal law. The Ohio Partnership for Long-Term Care Insurance is between the state of Ohio and private insurance companies. The partnership was created to encourage Ohioans to plan for their long-term health care needs. If you purchase a qualified partnership policy, you will gain additional coverage for long-term care services.

This “additional” coverage is in the form of “asset disregard” or “dollar-for-dollar asset protection.” In the event that you exhaust the benefits from your long-term care insurance policy, you would be allowed to keep more of your assets and still qualify for Medicaid long-term care services. Ohioans without a partnership policy who need Medicaid long-term care services must deplete almost all of their assets to qualify for the Medicaid program. An Ohio Long-Term Care Partnership policy allows you to shelter part of your estate equal to the total amount of benefits paid by your LTC policy.

Policy Example

Let’s say your Ohio Partnership Long-Term Care insurance policy paid $400,000 in benefits after you exhaust all the benefits in the policy. You would receive $400,000 in asset disregard as part of the policies dollar-for-dollar asset protection. This means you would be able to shelter the amount paid by the policy, in addition to the normal Medicaid allowance, and still access Medicaid’s Long-Term Care benefit. The Partnership Program also protects those assets after death from Medicaid estate recovery.

This means you would be able to shelter the amount paid by the policy, in addition to the normal Medicaid allowance, and still access Medicaid’s 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 Ohio. This means if you move from or to Ohio your partnership asset protection follows you as well.

Medicaid

Long-Term Care Medicaid spend down is $2,000. 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 $3,259.50. * The home equity limit is $603,000.

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

Rate Stability Rules

In addition, Ohio 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 Ohio

A variety of products are approved in Ohio for Long-Term Care planning. This includes traditional long-term care insurance policies plus those which are partnership certified, short-duration plans, and asset-based "hybrid" policies.

Tax Incentives

The state of Ohio also offers tax incentives in addition to the federal tax incentives that exist. A state tax deduction is available for the amount paid for qualified LTC insurance for the taxpayer, his/her spouse, and dependents (but only to the extent not otherwise allowable as a deduction or exclusion in computing federal or Ohio adjusted gross income).

Reverse Mortgages in Ohio

Reverse mortgages are available in Ohio. 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, Ohio 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.}