The State of Maryland participates in the federal long-term care partnership program as authorized by the Deficit Reduction Act of 2005 which was signed into law by President George W. Bush. The Maryland Long-Term Care Insurance Partnership Program is an innovative partnership between Maryland and private insurance companies who issue long-term care insurance policies.
A policy sold under the Long-Term Care Insurance Partnership Program, by law, must meet the same standards as a long-term care policy not sold under the program. In addition, a partnership policy must meet certain specific federal and state requirements, and be certified as a “long-term care partnership policy” by the Commissioner of the MIA.
Partnership policies provide an additional level of protection when compared to regular long-term care insurance policies. Partnership policies permit individuals to protect additional assets from spend-down requirements under Maryland’s Medicaid program if those individuals ever need and qualify for assistance under the program.
The asset eligibility and recovery provisions of Maryland’s Medicaid program are mitigated in these policies, so when qualifying for Medicaid, additional assets equaling the amount of insurance benefit received from the Partnership Policy can be disregard. For example, if you received $200,000 of insurance benefits from your Partnership Policy at the time of application for Medicaid, you generally would be able to retain $200,000 in assets above and beyond the amount normally permitted for Medicaid eligibility.
Long-Term Care Medicaid spend down is $2500. A spouse’s minimum asset allowance is $24,720.
Most states have reciprocity with other states' long-term-care partnership programs including Maryland. This means if you move from or to Maryland your partnership asset protection follows you as well.
In Maryland, there is a tax credit available if you have a qualified long-term care insurance policy. A credit is allowed against the state income tax for employers providing LTC insurance up to an amount equal to 5% of the costs incurred by the employer during the taxable year for providing
LTC insurance as part of an employee benefit package. The credit may not exceed $5,000 or $100 for each employee covered.
A one-time credit is allowed per individual against the state income tax in an amount equal to 100% of the eligible federally qualified LTC insurance premiums covering the individual, spouse, parent, step-parent, child, or step-child, not to exceed $500.
A variety of products are approved in Maryland for Long-Term Care planning.
Maryland Long-Term Care Costs
|Home Health Aide||Average Monthly Rate||$4,357|
|Homemaker Services||Average Monthly Rate||$4,143|
|Adult Day Care||Average Monthly Rate||$1,679|
|Assisted Living||Average Monthly Cost||$4,150|
|Skilled Nursing Home||Semi-Private Monthly||$9,125|
|Skilled Nursing Home||Private Average Monthly||$9,916|