Minnesota Long Term Care Insurance Information
There are 5,489,594 residents in Minnesota, according to a census done in 2015. Like most states, females slightly outnumber male residents (50.3%). Individuals 65 years and older make up 14.7% of the total population in the state.
America’s Health Rankings ranked Minnesota as one of the best states in its nationwide tally (4th place). Generally, most of the residents in the state are covered by insurance. Also, there is a low rate of reported cardiovascular deaths in the state, and very few poor physical health days were documented as well. Obesity is prevalent in Minnesota at 27.6% residents recorded to be overweight.
Minnesota is ranked 15th nationwide in the Medicare 5 Star Quality rating system. There are 377 certified nursing homes in the state, which contain 29,406 beds available for senior residents.
Average Cost of Long Term Care Services in Minnesota
Costs (2016) for LTC services in Minnesota are as follows:
Home Health Aide (Daily Rate): $163
Nursing Home Care (Daily Rate, Semi-Private Room): $242
Nursing Home Care (Daily Rate, Private Room): $266
Assisted Living Facility (Monthly Rate, 1 Bedroom-Single Occupancy): $3,200
Minnesota Long Term Care Partnership Program
Minnesota has an approved state LTC partnership program. The program was approved by the U.S. Department of Health and Human Services last July 1, 2006. The state will honor partnership from other DRA (Deficit Reduction Act) partnership states.
What is a Long Term Care Partnership Program?
The partnership program is designed to encourage people to purchase long-term care insurance by providing a plan that will allow Medicaid to disregard some or all assets for Medicaid eligibility and estate recovery purposes. Through partnership plans, people will receive asset protection whenever policy benefits are exhausted and will need continued benefits through Medicaid.
Partnership qualified insurance policies allow their holders a much easier time of applying for Medicaid when their current policy benefits have run out. Instead of needing to reach below the asset threshold set by the federal health care program, policy owners can protect an amount of assets equal to their total benefits – allowing them to continue receiving care without the risk of losing their assets to Medicaid estate recovery procedures.
For insurance policies to be certified as Partnership policies in Minnesota, the Deficit Reduction Act of 2005 has set a number of requirements that must be met:
- Issue Date: The policy must be issued after the effective date of the Partnership Program in the state (July 1, 2006).
- State of Residence: The policy holder must be a resident in Minnesota at the time the coverage became effective.
- Inflation Protection: All Partnership policies must include inflation protection. Policies issued to individuals under age 61 must provide compound annual inflation protection. Policies sold to individuals who have attained age 61 but not yet attained age 76 must include some level of inflation protection. Inflation protection may be offered, but is not required to individuals who have attained age 76.
- Qualified under Federal Tax Law: All Partnership policies must adhere to the definition of a Long Term Care Insurance policy in section 7702B (b) of the Internal Revenue Code of 1986.
- Consumer Protection: The policy must adhere to the requirements defined in section 1917(b)(1)(C)(iii)(III) of the Social Security Act (42 U.S.C. section 1396p(b)(1)(C)(iii)(III).
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