Maryland Long-Term Care

Important State Information

Federal Partnership Program

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.

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. The Partnership Program also protects those assets after death from Medicaid estate recovery.

Policy Example

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. The Partnership Program also protects those assets after death from Medicaid estate recovery.

Reciprocity

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.

Medicaid

Long-Term Care Medicaid spend down is $2,500. A spouse’s minimum asset allowance is $25,284. Your spouse’s minimum monthly income allowance is $2,057.50*

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

Rate Stability Rules

In addition, Maryland 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 Maryland

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

Tax Incentives

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 benefits 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.  Federal tax incentives are also available.

*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.

Maryland state emblem
State Breakdown
State Partnership Program
State Tax Incentives
Federal Tax Incentives
Rate Stability Rules
Medicaid Spend Down $2,500
Minimum Asset Allowance $25,284
Minimum Monthly Income Allowance $2,057.50
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Calculate the Cost of Care in Maryland

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

Maryland Median
Long-Term Care 2019 2034(+16 Years) 2019 2034(+16 Years)
Homemaker Services $50,644 $78,902(+$29,733) $49,489 $77,103(+$29,055)
Home Health Aide $52,435 $81,692(+$30,784) $52,435 $81,692(+$30,784)
Adult Day Care $21,424 $33,378(+$12,578) $23,232 $36,194(+$13,639)
Assisted Living Facility $57,752 $89,976(+$33,906) $52,530 $81,840(+$30,840)
Semi-Private Room $114,101 $177,766(+$66,988) $120,304 $187,430(+$70,630)
Private Room $119,552 $186,258(+$70,188) $130,831 $203,830(+$76,810)

Long-Term Care Throughout Maryland

Baltimore

Baltimore is the largest city in Maryland but is only 46 miles from Washington D.C. and is considered part of the greater Washington D.C. metro area. The average skilled nursing facility cost runs $10,585 a month. The cost of an Assisted Living Facilityaverages $4,250 a month. Adult Day Care Centers average $1,880 a month. Care at home, based on a 44-hour week, averages $4,242 a month.

More Locations

https://ltcnews-cdn.s3.amazonaws.com/states/Maryland/Maryland%20Map-standard-standard.jpgPopulation centers in Maryland include Annapolis, Aspen Hill, Bel Air South, Bethesda, Bowie, Catonsville, Chillum, Clinton, Columbia, Dundalk, Ellicott City, Essex, Frederick, Gaithersburg, Germantown, Glen Burnie, Hagerstown, North Bethesda, Odenton, Olney, Potomac, Randallstown, Rockville, Severn, Severna Park, Silver Spring, Towson, Waldorf, Wheaton, and Woodlawn.       

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