The State of Indiana was one of the four original partnership states. The Indiana Long-Term Care Insurance Partnership Program (ILTCIP) is a special program. It combines private long-term care insurance with special access to Medicaid. The private long-term care insurance companies must offer a specific level of benefits to allow policyholders to qualify for additional asset protection
Indiana’s program is unique as it provides options for both ‘total dollar’ asset protection and ‘dollar-for-dollar’ asset protection.
Effective April 1, 2009, Indiana was approved by the federal government to join the National Reciprocity Compact for granting Medicaid asset protection to policyholders from other states that have Partnership long-term care programs. Indiana Partnership policyholders who relocate to another state may be eligible to receive dollar for dollar asset protection if applying to that state’s Medicaid program.
The insurance policy benefits are payable in any state where you reside. But now with Indiana participating in the Reciprocity Compact, the asset protection benefit in your Indiana Partnership policy will be honored by other states.
Long-Term Care Medicaid spend down is $1500. A spouse’s minimum asset allowance is $123,600.
The State of Indiana also offers state tax incentives. This tax deduction applies only to Indiana Partnership Policies. An individual taxpayer is permitted to deduct an amount equal to the eligible portion of premiums paid during the taxable year by the taxpayer for a qualified LTC insurance policy (as defined in the Indiana Code) for the taxpayer, the taxpayer’s spouse, or both. Deduction only applies to the Partnership program. Ind. Code § 6-3-1-3.5 and § 12-15-39.6.5 (Qualified Long-Term Care Policy).
A variety of products are approved in Indiana for Long-Term Care planning.
Indiana Long-Term Care Costs
|Home Health Aide||Average Monthly Rate||$4,195|
|Homemaker Services||Average Monthly Rate||$4,004|
|Adult Day Care||Average Monthly Rate||$1,842|
|Assisted Living||Average Monthly Cost||$4,385|
|Skilled Nursing Home||Semi-Private Monthly||$6,859|
|Skilled Nursing Home||Private Average Monthly||$8,243|