Navigating Long-Term Care in Rhode Island

Rhode Island 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 Rhode Island. 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 Rhode Island 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 Rhode Island have several consumer protections in addition to federal tax benefits.

Federal Partnership Program

The State of Rhode Island, like most states, participates in the federal/state long-term care partnership program in order to help families protect assets from the high costs of long-term health care. This “dollar-for-dollar asset protection” provides additional benefit for qualified LTC insurance plans. The state established the Rhode Island Qualified Long-Term Care Insurance Partnership (QLTCIP) program to provide for the disregard of a Medicaid applicant's resources in an amount equal to the benefits paid by their QLTCIP policy in the event they exhaust their policy benefits. The total amount paid by the individual's QLTCIP policy at the time of death is also disregarded in the determination of the amount to be recovered from a beneficiary's estate.

Policy Example

If your Rhode Island Qualified Long-Term Care Insurance Partnership policy paid $425,000 in benefits you would have an equal amount of asset disregard.

The amount that will be protected during estate recovery is the same amount that was disregarded in the eligibility determination. There may be continuing QLTCIP policy payments after Medicaid eligibility is established, so if the person later gains assets, he/she may have more protected than at the time of eligibility. Thus, the total amount paid by the individual's QLTCIP at the time of death is to be disregarded in the determination of the amount to be recovered from a beneficiary's estate.

Reciprocity

Most states have reciprocity with other states' long-term-care partnership programs including Rhode Island. This means if you move from or to Rhode Island 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.

Rate Stability Rules

In addition, Rhode Island 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 Rhode Island

A variety of products are approved in Rhode Island for Long-Term Care planning. This includes the traditional plans, including partnership certified policies, short-duration policies, and asset-based “hybrid” policies.

Tax Incentives

Rhode Island does not offer any state tax incentive for qualified Long-Term Care insurance; however, federal tax incentives are still available.

Reverse Mortgages in Rhode Island

The State of Rhode Island has consumer protections in force, making today’s reverse mortgages a better option for people to consider. This type of mortgage can increase monthly income, eliminate mortgage payments, and even fund Long-Term Care Insurance. The state has specific eligibility requirements that must be met, however.

Your home must be your primary residence. All borrowers on the title must be 62 or older, although a spouse under age 62 is allowed in some circumstances. Plus, you must not be delinquent on federal debts. 

Borrowers must attend a mandatory counseling session as well. You must also have a home paid in full or have substantial equity in your home. 

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.