Navigating Long-Term Care in West Virginia

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

Federal Partnership Program

The State of West Virginia participates in the federal/state long-term care insurance partnership program. The program was authorized through the federal Deficit Reduction Act of 2005 (DRA) which empowered states to help their citizens plan for long-term care with additional asset protection.

The West Virginia Long Term Care Partnership is a public/private arrangement between the state government and private long-term care insurers that assists individuals in planning for future long-term care needs. It enables people who purchase qualified long-term care insurance to have more of their assets protected if they later need state assistance in paying for long-term care. Example: if you receive $300,000 in benefits under your long-term care insurance, you may be allowed to protect an additional $300,000 in assets at the time you apply for Medicaid/Medical Assistance through a feature known as “asset disregard” under West Virginia’s Medicaid program.

Policy Example

For every dollar that a West Virginia Partnership Long-Term Care insurance policy pays in benefits, a dollar of personal assets can be protected (disregarded) during the Medicaid eligibility spend down. Example: if you receive $300,000 in benefits under your qualified Long-Term Care Insurance policy, you may be allowed to protect an additional $300,000 in assets at the time you apply for Medicaid/Medical Assistance through a feature known as “asset disregard” under West Virginia’s Medicaid program.

“Asset disregard” means that an amount of the policyholder’s assets equal to the amount of long-term care insurance benefits received from a qualified partnership policy will be disregarded for the purpose of determining the insured’s eligibility for Medicaid. This generally allows a person to keep assets equal to the insurance benefits received without affecting the person’s eligibility for Medicaid. 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 West Virginia. This means if you move from or to West Virginia 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 $2,155. * The home equity limit is $603,000.

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

Rate Stability Rules

In addition, West Virginia 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 West Virginia

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

Tax Incentives

West Virginia offers a state tax incentive for qualified long-term care insurance. Resident taxpayers can deduct LTC premium (as defined in the West Virginia Code) paid during the taxable year for the taxpayer, his/her spouse, parent or dependent, from the federal adjusted gross income reported on the West Virginia state tax return.

A deduction is allowed on the state level only to the extent that the amount is not allowable as a deduction for purposes of determining the taxpayer’s federal adjusted gross income for the year of payment.

Reverse Mortgages in West Virginia

Reverse mortgages are available in West Virginia. A reverse mortgage is a home equity loan where the borrower does not have to make payments.

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.

This type of mortgage can increase monthly income, eliminate mortgage payments, and even fund Long-Term Care Insurance. However, West Virginia has many rules on these products, and you should seek the help of a qualified and licensed mortgage broker. 

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.}