Mississippi has yet to adopt the federal/state partnership program, although efforts to do so. However, there are tax benefits available if you own a qualified Long-Term Care Insurance policy.
There are a variety of quality care options available throughout Mississippi. However, long-term health care costs are rising. These rapidly increasing costs for care services throughout the state are becoming burdensome on residents and their families for those who do not have Long-Term Care Insurance.
The variety of quality care options available throughout Mississippi for those who require long-term health care services include:
- adult day care centers
- assisted living facilities
- continuing care retirement communities
- home health care providers
- memory care facilities
- rehabilitation facilities
- traditional nursing homes
Top insurance companies have several insurance options to help residents safeguard income and assets, protect lifestyles, and preserve a legacy. Plus, policyholders will have access to quality care options giving loved ones the time to be family instead of caregivers.
Plus, all tax-qualified Long-Term Care Insurance policies in Mississippi have several consumer protections in addition to federal tax benefits.
Federal Partnership Program
Mississippi has yet to adopt the federal/state partnership program although efforts have been made to do so. The state does, however, offer state tax benefits if a consumer purchases a qualified long-term care insurance policy.
Since Mississippi has not yet adopted the federal long-term care partnership program there is no current reciprocity with other partnership states. This means if you own a partnership policy from another state and move into Mississippi your dollar-for-dollar asset protection will not be honored. However, you can receive benefits in the state from your policy.
Long-Term Care Medicaid spend down is $4,000. A spouse’s minimum asset allowance is $130,380 Your spouse’s minimum monthly income allowance is $3,259.50. * The home equity limit is $603,000.
For more information about the Medicaid program visit www.medicaid.gov.
Products Approved in Mississippi
A variety of products are approved in Mississippi for Long-Term Care planning. These include tradition policies, short-duration plans, and asset-based plans.
A credit is allowed against income taxes imposed under Chapter 7 in an amount equal to 25% of the premium costs paid during the taxable year for a qualified LTC insurance policy that offers coverage to either the individual, spouse, parent or parent-in-law or dependent. The credit shall not exceed $500 or the taxpayer’s income tax liability, whichever is less, for each qualified Long-Term Care insurance policy. Any unused tax credit may not be carried forward to future tax years. No credit is allowed if the taxpayer deducted the premium amounts when net taxable income was calculated or the premiums were excluded from net taxable income.
Reverse Mortgages in Mississippi
Reverse mortgages are available in Mississippi. A reverse mortgage is a home equity loan where the borrower does not have to make payments.
This type of mortgage can increase monthly income, eliminate mortgage payments, and even fund Long-Term Care Insurance. However, there are many rules in Mississippi on these products, and you should seek the help of a qualified and licensed mortgage broker.
If you have significant equity in your home and you and your spouse are at least 62 years old, you can get a reverse mortgage to turn your equity into funding long-term health care, pay for an LTC Insurance policy, pay bills and add to your retirement lifestyle.
The home must be the principal residence without any tax liens.
Learn more about reverse mortgages by clicking here.
*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.