The State of Maine participates in the federal/state long-term care partnership program. The program, which was authorized by federal law in 2005, provides additional asset protection for individuals with a qualified partnership long-term care insurance policy.
It is intended to encourage the people of Maine to purchase LTC insurance rather than rely exclusively on their assets and then on Medicaid once their assets are exhausted. People who buy a Maine Long-Term Care Partnership policy have their assets protected from Medicaid eligibility requirements and Medicaid’s estate recovery equal to the amount of insurance benefits paid out. This is a dollar-for-dollar offset
For example, if you receive $200,000 in insurance benefits from your Maine Long-Term Care Partnership policy, you will be able to retain $200,000 in assets above the specified amount of assets normally permitted for Medicaid eligibility. The $200,000 is also exempt from estate recovery.
Long-Term Care Medicaid spend down is $2000. A spouse’s minimum asset allowance is $123,600.
Maine offers both a state tax credit and deduction.
CREDIT: An employer providing long-term care benefits to its employees may qualify for the tax credit.
A credit is allowed against the tax imposed for each taxable year equal to the lowest of the following: (A) $5,000; (B) 20% of the costs incurred by the taxpayer in providing LTC insurance policy coverage as part of the benefit package; or (C) $100 for each employee covered by an employer-provided LTC insurance policy.
A taxpayer is entitled to a state tax deduction for qualified LTC insurance premiums as long as the amount deducted is reduced by any amount deducted for federal income tax purposes and by any LTC insurance premiums claimed as an itemized deduction pursuant to Maine Rev. Stat. tit. 36 section 5125.
Most states have reciprocity with other states' long-term-care partnership programs including Maine. This means if you move from or to Maine your partnership asset protection follows you as well.
A variety of products are approved in Maine for Long-Term Care planning.
Maine Long-Term Care Costs
|Home Health Aide||Average Monthly Rate||$4,481|
|Homemaker Services||Average Monthly Rate||$4,385|
|Adult Day Care||Average Monthly Rate||$2,340|
|Assisted Living||Average Monthly Cost||$4,890|
|Skilled Nursing Home||Semi-Private Monthly||$9,140|
|Skilled Nursing Home||Private Average Monthly||$9,764|