Navigating Long-Term Care in Oklahoma

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

Federal Partnership Program

The State of Oklahoma is a participant in the federal/state long-term care partnership program which Congress authorized as part of the Deficit Reduction Act of 2005.  The Oklahoma Long-Term Care Partnership program allows some asset protection if a partnership product is purchased and the individual later applies for SoonerCare (Oklahoma’s Medicaid program). In a collaborative effort with the Oklahoma Insurance Department and private insurance companies, individuals have an alternative to depleting or “spending down” their assets should they still need long-term care beyond the benefit period covered by their approved partnership policy.

Policy Example

This is “dollar-for-dollar” asset protection. For example, if your Oklahoma Long-Term Care Partnership policy paid $350,000 in benefits when you exhausted it, you receive an equal amount of asset protection – what is referred to as “asset disregard”. This means you may keep those assets without having to exhaust them to the normal limit required for SoonerCare eligibility. 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 Oklahoma. This means if you move from or to Oklahoma your partnership asset protection follows you as well.

Medicaid-SoonerCare

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, Oklahoma 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 Oklahoma

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

Tax Incentives

The State of Oklahoma also offers a state tax incentive. It permits the same tax deduction as is allowed for federal income tax purposes.

Reverse Mortgages in Oklahoma

Reverse mortgages are available in Oklahoma. 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, Oklahoma 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.}