Nebraska Long-Term Care Partnership Program

 

The Nebraska Long-Term Care Partnership Program is an alliance between private insurance companies and the state government. It is designed to protect residents of Nebraska from depleting all of the their savings and assets to pay for long-term care, if there is a need to apply for Medicaid. The Nebraska Partnership Program is designed to reward residents of Nebraska who plan for their future long-term care needs, with Dollar-For-Dollar Asset Protection.

Nebraska Partnership Policies are very similar to non-Partnership LTC policies. One of the main differences is the Dollar-For-Dollar Asset Protection that is automatically built into a Partnership Policy. This is where state will disregard the policyholder's personal assets equal to amounts paid out under a qualifying insurance policy when it determines the person's eligibility for Medicaid assistance. For example, if a qualifying Long-Term Care Insurance Partnership policy pays out $50,000 in benefits to cover a person's long-term care needs, Medicaid would not count up to $50,000 of the person's assets when it determines whether a person is eligible for Medicaid assistance with long term care costs. This means the person would be able to qualify for long-term care assistance though Medicaid without first having to spend all of their assets on care.

In order for a long-term care insurance policy to qualify for NE's Partnership Program the policy must provide at least the following levels of inflation protection:

  • --Under age 61: Automatic compound inflation protection of at least 5%
  • --Age 61-75: Automatic annual inflation protection of at least 5% (simple or compound)
  • --Age 76+: No inflation required (may be purchased by choice)

A NE Partnership Policy must also be tax qualified and contain certain certain protection provisions.

The average costs of care on a daily basis in the state of NE are listed below:

Homemaker Services
$121
Home Health Aide
$129
Adult Day Care
$53
Assisted Living Facility
$107
Nursing Home, Private Room
$193
Nursing Home, Semi-Private Room
$176

*This information came from the Genworth 2012 Cost of Care Survey.

For more information please visit the Nebraska Department of Insurance website.