Iowa Long-Term Care

Important State Information

Federal Partnership Program

The State of Iowa participates in the federal/state partnership program which was authorized under federal law in 2005. The Iowa Long-Term Care Partnership program provides an alternative to depleting assets by forming a partnership between Medicaid and private long-term care insurers.

Consumers who purchase Long-Term Care Partnership policies may be able to qualify for Medicaid before spending down all of their assets. In what is called “dollar-for-dollar” asset protection, the state will disregard an amount equal to the amount your long-term care insurance policy paid out in benefits. This means even a smaller policy will provide outstanding asset protection. Partnership policies must meet state and federal requirements. They are only marketed by licensed insurance professionals who have completed eight hours of training required by the State of Iowa Insurance Division.

Policy Example

Look at this example. Your Iowa Long-Term Care Partnership policy pays out $285,000 in benefits when it exhausts. The state would then disregard that same amount when it calculates your eligibility for the Medicaid Long-Term Care benefit. You can design your policy to protect the appropriate amount of assets based on your individual situation. The protected assets will also be exempted from Estate Recovery in the amount equal to the benefits paid by the partnership policy.

Reciprocity

Most states have reciprocity with other states' long-term-care partnership programs including Iowa. This means if you move from or to Iowa your partnership asset protection follows you as well.

Medicaid

Long-Term Care Medicaid spend down is $2,000. A spouse’s minimum asset allowance is $24,000. Your spouse’s minimum monthly income allowance is $2,313. *

For more information about the Medicaid program visit www.medicaid.gov.

Rate Stability Rules

In addition, Iowa 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 Iowa

There are several products approved in Iowa for Long-Term Care planning. These include traditional plans, including partnership certified policies, short-duration policies, and asset-based “hybrid” plans.

Tax Incentives

Iowa permits tax deduction from net income for premiums paid for long-term care insurance coverage to the same extent allowable under federal law and to the extent not otherwise deducted in computing Adjusted Gross Income. Federal tax incentives exist as well.

*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.

Iowa state emblem
State Breakdown
State Partnership Program
State Tax Incentives
Federal Tax Incentives
Rate Stability Rules
Medicaid Spend Down $2,000
Minimum Asset Allowance $24,000
Minimum Monthly Income Allowance $2,313
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Calculate the Cost of Care in Iowa

View the costs of Long-Term Care in your area. Use the slider below to view future costs of care services with inflation.

Iowa Median
Long-Term Care 2019 2034(+16 Years) 2019 2034(+16 Years)
Homemaker Services $56,559 $88,118(+$33,206) $58,916 $91,789(+$34,589)
Home Health Aide $58,916 $91,789(+$34,589) $58,916 $91,789(+$34,589)
Adult Day Care $16,724 $26,056(+$9,819) $21,424 $33,378(+$12,578)
Assisted Living Facility $47,543 $74,070(+$27,912) $48,995 $76,333(+$28,765)
Semi-Private Room $75,190 $117,144(+$44,144) $87,972 $137,058(+$51,648)
Private Room $80,077 $124,758(+$47,013) $97,747 $152,287(+$57,387)
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Long-Term Care Throughout Iowa

Des Moines

Des Moines is the capital of Iowa and the state’s largest city. The average skilled nursing facility cost runs $7,818 a month. Assisted Living averages $3,950 a month. Adult Day Care Centers average $1,490 a month. Care at home, based on a 44-hour week, averages $4,767 a month. Other population centers in the Des Moines metro include West Des Moines, Ankeny, Altoona, Clive, Grimes, Johnston, Newton, Norwalk, Urbandale, and Waukee.

Cedar Rapids 

The Cedar Rapids metro includes towns like Marion, Hiawatha, Robins, Vinton, and Anamosa. The average skilled nursing facility cost runs $6,494 a month. Assisted Living averages $3,925 a month. Adult Day Care Centers average $1,416 a month. Care at home, based on a 44-hour week, averages $4,385 a month.

Quad Cities

I-74 Bridge-standard.jpgThe Quad Cities of Davenport and Bettendorf in Iowa, and Rock Island, Moline, and East Moline in Illinois and their suburbs in northwest Illinois and southeast Iowa also form a large population center. The average skilled nursing facility cost runs $6,464 a month. Assisted Living averages $3,865 a month. Adult Day Care Centers average $1,375 a month. Care at home, based on a 44-hour week, averages $4,004 a month.

More Locations

Other population centers in Iowa include Ames, Boone, Cedar Falls, Council Bluffs (part of the Omaha, Nebraska metro area), Dubuque, Iowa City, Mason City, Sioux City, Waterloo.