Wisconsin Long-Term Care

Federal Partnership Program

The State of Wisconsin participates in the federal/state long-term care insurance partnership program. The program, which was authorized under law, empowers states to enact these programs so families can better protect assets from the high costs of long-term care.

The Wisconsin Long-Term Care Insurance Partnership Program is a joint effort between the federal Medicaid Program, long-term care insurers, and the state of Wisconsin.

The purpose of the Wisconsin Long-Term Care Insurance Partnership Program is to encourage people to make plans for how they will meet their future long-term care needs, whether through services provided in their own home, a community-based setting or in a nursing facility.

Under the Wisconsin Long-Term Care Insurance Partnership Program, the amount in assets equal to the amount of benefits received from a qualifying policy is excluded when: 

• The person’s resources are examined for purposes of determining Wisconsin Medicaid eligibility, and

• Estate recovery is determined upon death after the individual has received Wisconsin Medicaid benefits. 

Policy Example

This “asset disregard” is dollar-for-dollar. For example, if the qualified long-term care insurance policy paid $300,000 in benefits that same amount would be disregarded (in addition to the $2,000 that is normally allowed) for a person to qualify for Medicaid long-term care benefits. This means a family can keep more assets than is typically legally allowed.

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 Wisconsin. This means if you move from or to Wisconsin 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 minimum of $50,000 up to a maximum of one-half of countable assets up to $128,640  our spouse’s minimum monthly income allowance is $2,818.34. * The home equity limit is $893,000.

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

Rate Stability Rules

In addition, Wisconsin 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 Wisconsin

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

Tax Incentives

Wisconsin offers a state tax incentive for qualified long-term care insurance. Wisconsin Taxpayers take a deduction from Federal AGI for a portion of LTCI premium in calculating WI taxable income, including LTCI premium spent for a spouse’s policy, to the extent a deduction isn’t taken federally. The amount of LTCI premium-deductible in calculating federal taxable income is not included in calculating the Wisconsin itemized deductions credit.

_{*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.}