Federal Partnership Program
The State of Arkansas participates in the federal/state partnership program. The program was authorized when the federal Deficit Reduction Act of 2005 became law. It provides consumers with additional “dollar-for-dollar” asset protection if they exhaust the benefits from their qualified long-term care policy.
This “dollar-for-dollar asset protection” or “asset disregard” will impact the spend-down requirements if you exhaust the benefits from the policy. If you have a qualified Arkansas Partnership Long-Term Care insurance policy and exhaust all of your benefits you are able to protect your estate, based on the total amount of benefits paid by the policy, and still qualify for Medicaid.
For example, your policy pays out $375,000 in benefits but you are still alive and require care. You earn a Medicaid asset disregard that allows you to protect that same amount over the asset level you would otherwise be forced to meet in order to be eligible for Medicaid’s Long-Term Care benefit. The Partnership Program also protects those assets after death from Medicaid estate recovery.
Most states have reciprocity with other states' long-term-care partnership programs including Arkansas.
Long-Term Care Medicaid spend down is $2,000. Minimum of $25,728 up to a maximum of one-half of countable assets up to $128,640. Your spouse’s minimum monthly income allowance is $2,113.75 * The home equity limit is $595,000.
For more information about the Medicaid program visit www.medicaid.gov
Rate Stability Rules
In addition, Arkansas consumers enjoy additional peace-of-mind as the state has adopted Long-Term Care Insurance Rate Stability Rules. These rules, developed the National Association of Insurance Commissioners, makes it much harder for an insurance company to get an approved rate increase.
Products Approved in Arkansas
A variety of affordable products are approved in Arkansas for Long-Term Care planning. These include traditional partnership certified policies, limited-duration policies and asset-based “hybrid” plans.
The state of Arkansas permits the same tax deduction as is allowed for federal income tax purposes for premiums paid for the purchase of qualified LTC insurance. The federal tax incentives also apply.
*The federal government sets a new minimum and maximum amounts each year, but states can set their own minimum requirements at any level between the federal limits. This information is based on the best available sources.