The State of Iowa participates in the federal/state partnership program which was authorized under federal law in 2005. The Iowa Long-Term Care Partnership program provides an alternative to depleting assets by forming a partnership between Medicaid and private long-term care insurers.
Consumers who purchase Long-Term Care Partnership policies may be able to qualify for
Medicaid before spending down all of their assets. In what is called “dollar-for-dollar” asset protection, the state will disregard an amount equal to the amount your long-term care insurance policy paid out in benefits. This means even a smaller policy will provide outstanding asset protection. Partnership policies must meet state and federal requirements. They are only marketed by licensed insurance professionals who have completed eight hours of training required by the State of Iowa Insurance Division.
Long-Term Care Medicaid spend down is $2000. A spouse’s minimum asset allowance is $24,720.
Most states have reciprocity with other states' long-term-care partnership programs including Iowa. This means if you move from or to Iowa your partnership asset protection follows you as well.
Iowa permits tax deduction from net income for premiums paid for long-term care insurance coverage to the same extent allowable under federal law and to the extent not otherwise deducted in computing Adjusted Gross Income. Federal tax incentives exist as well.
A variety of products are approved in Iowa for Long-Term Care planning.
Iowa Long-Term Care Costs
|Home Health Aide||Average Monthly Rate||$4,767|
|Homemaker Services||Average Monthly Rate||$4,576|
|Adult Day Care||Average Monthly Rate||$1,353|
|Assisted Living||Average Monthly Cost||$3,847|
|Skilled Nursing Home||Semi-Private Monthly||$6,083|
|Skilled Nursing Home||Private Average Monthly||$6,479|