The State of Nebraska participates in the federal/state long-term care partnership program established under the authority of the Deficit Reduction Act of 2005. The program offers additional asset protection, known as “dollar-for-dollar” asset protection, if you have a qualified long-term care insurance policy.
A Nebraska Long-Term Care Partnership Policy is a tax qualified long-term care policy (group insurance contracts include a certificate with policy issue) which would result in an asset disregard. For the purpose of determining the policyholder's eligibility for Medicaid after the policy benefits are exhausted, the asset disregard is equal to the amount of long term care benefits received under a Nebraska Partnership Policy.
This allows a person to keep assets equal to the amounts received under a qualified Nebraska Partnership Policy without affecting the person’s eligibility for Medicaid.
Long-Term Care Medicaid spend down is $4000. A spouse’s minimum asset allowance is $24,720.
Most states have reciprocity with other states' long-term-care partnership programs including Nebraska. This means if you move from or to Nebraska your partnership asset protection follows you as well.
There is a state tax incentive, in addition to federal tax incentives, to encourage consumers to purchase a qualified long-term care insurance policy.
The law allows a state income tax deduction for The Nebraska Long-Term Care Savings Plan contribution of up to $2,000 per married filing jointly return or $1,000 for any other return, to the extent not deducted for federal income tax purposes.
A variety of products are approved in Nebraska for Long-Term Care planning.
Nebraska Long-Term Care Costs
|Home Health Aide||Average Monthly Rate||$4,576|
|Homemaker Services||Average Monthly Rate||$4,481|
|Adult Day Care||Average Monthly Rate||$1,555|
|Assisted Living||Average Monthly Cost||$3,844|
|Skilled Nursing Home||Semi-Private Monthly||$6,905|
|Skilled Nursing Home||Private Average Monthly||$7,266|