Florida participates in the federal/state Long-Term Care Partnership Program authorized by the Deficit Reduction Act (DRA). Florida’s Long-Term Care Partnership Program is a partnership program between Medicaid and private long-term care insurers designed to encourage individuals to purchase private long-term care insurance. Long-Term Care Partnership policies must be tax qualified (a portion of premiums paid may be claimed as a tax deduction) under federal law; provide policyholders with inflation protection; and most importantly, provide dollar-for-dollar asset protection in the event the policyholder needs to apply for long-term care Medicaid assistance. For every dollar that a partnership policy pays out in benefits, a dollar of assets can be protected from Medicaid spend-down requirements.
For example, if your partnership policy pays $300,000 in benefits the state will disregard an equal amount in the spend-down requirement for Medicaid. This would allow you to qualify for Medicaid long-term care benefits while retaining more of your assets than what Medicaid would typically allow.
Long-Term Care Medicaid spend down is $2000. A spouse’s minimum asset allowance is $123,600.
Most states have reciprocity with other states' long-term-care partnership programs including Florida. This means if you move from or to Florida your partnership asset protection follows you as well.
A variety of products are approved in Florida for Long-Term Care planning.
There are no current state tax incentives available at this time, federal tax incentives do apply.
Florida Long-Term Care Costs
|Home Health Aide||Average Monthly Rate||$3,813|
|Homemaker Services||Average Monthly Rate||$3,670|
|Adult Day Care||Average Monthly Rate||$1,408|
|Assisted Living||Average Monthly Cost||$3,110|
|Skilled Nursing Home||Semi-Private Monthly||$7,908|
|Skilled Nursing Home||Private Average Monthly||$8,882|