Navigating Long-Term Care in Oregon

Oregon 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 Oregon. 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 Oregon 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 Oregon have several consumer protections in addition to federal tax benefits.

Federal Partnership Program

The State of Oregon participates in the federal/state long-term care partnership program which was authorized by federal law in 2005.  The State established a partnership among the Department of Human Services (DHS), the Department of Consumer and Business Services, and some private long-term care insurers to offer special long-term care (LTC) insurance policies that entitle policyholders to asset protection. These policies must meet certain state and federal requirements. A qualified partnership policy (QPP) may be entitled to special asset protection under Oregon’s Medicaid program.

With a qualified Oregon Long-Term Care Partnership policy, you may qualify for Medicaid long-term care benefits and keep more assets than what is normally allowed under the law. Assets include money in the bank, investments, and real property. Generally, people qualify for Medicaid when they have assets of $2,000 or less. A QPP allows you to keep assets equal to the amount of LTC insurance benefits you received. Also, a QPP protects your inheritance for the same amount.

Policy Example

If your QPP paid $350,000 in LTC benefits, you would get to keep the $2,000 Medicaid normally allows and also shelter $350,000 in additional assets and while still becoming eligible for Medicaid. Whatever the policy paid is what will be “disregarded” in the spend-down requirements. This allows for additional asset protection. 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 Oregon. This means if you move from or to Oregon 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 $2,177. * The home equity limit is $603,000.

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

Rate Stability Rules

In addition, Oregon 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 Oregon

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

Tax Incentives

Oregon no longer offers a state tax incentive for qualified Long-Term Care insurance; however, federal tax incentives are still available.

LTC Tax

Oregon 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 Oregon

Reverse mortgages are available in Oregon. 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 Oregon 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.}