Michigan now participates in the federal/state partnership for long-term care program. The Michigan Partnership Program is a partnership between state government and private insurance companies to assist individuals in planning for their long-term care needs. Insurance companies must follow state and federal guidelines, and agents must be licensed and trained to sell partnership policies. The idea is to provide a consumer with financial protection for the costs of long-term care with a safeguard for additional asset protection known as “dollar-for-dollar” protection or “asset disregard.”
Long-Term Care Insurance policies that qualify for the Michigan Long-Term Care Partnership Program may protect the policyholder’s or certificate holder’s assets through a feature known as “Asset Disregard” under Michigan’s Medicaid program. Asset Disregard means that the amount of a policyholder’s or certificate holder’s assets equal to the amount of long-term care benefits received under a qualified Michigan Partnership Program insurance policy will be disregarded for the purpose of determining the insured’s eligibility for Medicaid. This generally allows a person to keep assets equal to the insurance benefits paid on his/her behalf under a qualified partnership policy.
Long-Term Care Medicaid spend down is $2500. A spouse’s minimum asset allowance is $24,720.
There are no current state tax incentives for long-term care insurance, federal tax incentives still apply.
A variety of products are approved in Michigan for Long-Term Care planning.
Michigan Long-Term Care Costs
|Home Health Aide||Average Monthly Rate||$4,385|
|Homemaker Services||Average Monthly Rate||$4,195|
|Adult Day Care||Average Monthly Rate||$1,733|
|Assisted Living||Average Monthly Cost||$3,850|
|Skilled Nursing Home||Semi-Private Monthly||$8,562|
|Skilled Nursing Home||Private Average Monthly||$9,125|