Navigating Long-Term Care in Wisconsin

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

Federal Partnership Program

The State of Wisconsin participates in the federal/state long-term care insurance partnership program. The program, which was authorized under law, empowers states to enact these programs so families can better protect assets from the high costs of long-term care.

The Wisconsin Long-Term Care Insurance Partnership Program is a joint effort between the federal Medicaid Program, long-term care insurers, and the state of Wisconsin.

The purpose of the Wisconsin Long-Term Care Insurance Partnership Program is to encourage people to make plans for how they will meet their future long-term care needs, whether through services provided in their own home, a community-based setting or in a nursing facility.

Under the Wisconsin Long-Term Care Insurance Partnership Program, the amount in assets equal to the amount of benefits received from a qualifying policy is excluded when: 

• The person’s resources are examined for purposes of determining Wisconsin Medicaid eligibility, and

• Estate recovery is determined upon death after the individual has received Wisconsin Medicaid benefits. 

Policy Example

This “asset disregard” is dollar-for-dollar. For example, if the qualified long-term care insurance policy paid $300,000 in benefits that same amount would be disregarded (in addition to the $2,000 that is normally allowed) for a person to qualify for Medicaid long-term care benefits. This means a family can keep more assets than is typically legally allowed.

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 Wisconsin. This means if you move from or to Wisconsin 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 $50,000 up to a maximum of one-half of countable assets up to $130,380  our spouse’s minimum monthly income allowance is $2,873.34.  * The home equity limit is $903,000.

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

Rate Stability Rules

In addition, Wisconsin 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 Wisconsin

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

Tax Incentives

Wisconsin offers a state tax incentive for qualified long-term care insurance. Wisconsin Taxpayers take a deduction from Federal AGI for a portion of LTCI premium in calculating WI taxable income, including LTCI premium spent for a spouse’s policy, to the extent a deduction isn’t taken federally. The amount of LTCI premium-deductible in calculating federal taxable income is not included in calculating the Wisconsin itemized deductions credit.

Reverse Mortgages in Wisconsin

Reverse mortgages are available in Wisconsin. 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, Wisconsin 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.}