Navigating Long-Term Care in Utah

In 2014 Utah authorized participation in their federal/state long-term care partnership program, but it has not been fully implemented. However, there are many planning options available to protect assets from the costs and burdens of aging.

The state has a variety of quality care options available to provide long-term health care services. There are many available options to address these costs, including Long-Term Care Insurance policies that would qualify for partnership status.

There are a variety of quality care options available throughout Utah. However, long-term health care costs are rising, especially is sparsely populated areas. 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 Utah 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 Utah have several consumer protections in addition to federal tax benefits

Federal Partnership Program

On October 1, 2014, Utah authorized participation in their federal/state long-term care partnership program. Utah Long-Term Care Insurance Partnership (LTCIP) policies are insurance policies that will pay for some or all of the client's long-term care medical needs while also allowing a form of asset and estate recovery protection for Medicaid purposes.

The program has yet to be fully implemented. At the moment, no insurance company has filed with the state to be partnership certified. When that happens, these qualified policies will provide dollar-for-dollar asset protection. However, tax-qualifed Long-Term Care Insurance is available in Utah and should qualify once the program becomes fully active.

Policy Example

When available, a partnership policy provides dollar-for-dollar asset protection in the event you were to exhaust the benefits of your policy. For example, if your policy pad $350,000 in benefits you would have an equal amount of asset-protection when determining your eligibility for Medicaid’s Long-Term Care benefit.

Reciprocity

Most states have reciprocity with other states' long-term-care partnership programs including Utah. This means if you move from or to Utah 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 $3,260. * The home equity limit is $603,000.

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

Rate Stability Rules

In addition, Utah 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 Utah

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

Tax Incentives

Utah does not offer any state tax incentive for qualified long-term care insurance. However, federal tax incentives are available.

LTC Tax

Utah 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

_{*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.}