Long-Term
Care
Insurance


Facts About
The New York State
Partnership For
Long-Term Care
Program



News on Long-Term
Care Insurance

Assemblywoman
Michele
Titus

District Office
19-31 Mott Avenue,
Room 301
Far Rockaway, NY 11691
(718) 327-1845

Albany Office
Room 834 LOB
Albany, NY 12248
(518) 455-5668

E-Mail
titusm@assembly.state.ny.us

Need More Info?

Contact the NYS Insurance Department toll-free at 1-888-697-7582


from Assemblywoman
Michele Titus

The New York State Partnership for Long-Term Care Program is an innovative partnership between the public and private sectors designed to help people afford costly nursing home bills.

Residents of New York State are also allowed a long-term care insurance tax credit for premiums paid for certain long-term care insurance policies.

This brochure outlines the benefits and requirements of these policies. If you would like more information, please contact my office or call the New York State Insurance Department’s Partnership for Long-Term Care toll-free con-sumer hotline at 1-888-697-7582.

Sincerely,

Michele Titus
Member of Assembly





Long-Term Care Insurance Program Benefits

The following is a summary of benefits for long-term care insurance policyholders:

Nursing Home Care
Coverage for at least three years of skilled nursing care, intermediate care and custodial care received in nursing homes.

Home Care
Coverage for six years (72 months) of skilled nursing care, home health care, personal care, assisted living and adult day care; six years of home care coverage only, or some combination of home care and nursing home care benefits (meeting the three year nursing home coverage requirement).

Home care benefits are paid when services are provided in the individual's home, in a group setting such as an adult day care center or where home assistance is required by the insured to aid in necessary travel, such as to a physician's office.

Respite Care
Annual coverage for at least 14 days of respite care with payments equal to the policy’s daily nursing home benefit.

Alternate Care in a Hospital
Alternate care benefits are required for hospitalized individuals who are unable to obtain nursing home or home care services.




Q & A

What is the NYS Partnership For Long-Term
Care Program?

This program enables consumers who purchase state-approved, private long-term care insurance to qualify for Medicaid coverage after exhausting their policies’ benefits, without losing their assets. It addresses one of the most serious problems facing our health care system — how to provide long-term care for the elderly without depleting their life savings.

How do I know if this type of policy is right for me?

Take into account several factors when considering whether to purchase a long-term care policy. Think about your assets. The cost of these insurance premiums can range from $1,500 to $2,000 per year for a 65-year-old.

Why should I purchase long-term insurance when I
can opt for Medicaid?

To qualify for Medicaid, you are required to “spend down” your assets before you qualify. There are strict regulations regarding how you handle your resources. Couples who have worked a lifetime can see their assets depleted when one spouse needs long-term care.

Am I excluded from Medicaid after my benefits run out?

No. When your long-term care insurance benefits end, Medicaid will pick up the rest of the care costs. In addition, your assets will not be considered when applying for Medicaid. However, any income you receive will go toward the cost of care.

How do I know if I am eligible for this program?

Any resident of New York State is eligible. But you still have to decide if this type of policy is right for you. Applicants must undergo health screenings by private insurers, and insurers are allowed to set up minimum and maximum ages for applicants. Both single and married people are eligible to apply, although couples must purchase separate policies.

Who offers these policies?

You can purchase individual policies through: GE Capital Life Assurance Co. of NY, Med America Insurance Co. of New York, Metropolitan Life Insurance Co., John Hancock Mutual Life Insurance Co., Mutual of Omaha and New York Life Insurance Co. In addition, New York State licenses insurance companies that sell these policies.




Tax Credit Available

New York State now offers a Long-Term Care Insurance Tax Credit, effective for tax years beginning on or after January 1, 2002. The credit will be allowed for 10% of the premium paid for the purchase of qualifying long-term care insurance. This replaces the former deduction for long-term care insurance premiums resulting in greater tax savings for eligible taxpayers.

To qualify for the credit, the taxpayer’s premium payment must be for the purchase of a long-term care insurance policy approved by the New York State Superintendent of Insurance. The credit is also available to employers who pay premium payments for the purchase of approved long-term care insurance policies on behalf of their employees. A taxpayer can carry over to future tax years any amount of the credit that is in excess of the taxpayer’s tax liability for that year.

For more information, please contact the State Department of Taxation and Finance Taxpayer Assistance Unit at 1-800-225-5829.


Consider the costs...

  • In New York State, skilled nursing facilities currently charge $237 per day on average, which totals $86,597 a year.

  • Three home health care visits a week by a registered nurse can cost more than $30,000 per year. Custodial home care — at three visits per week — can cost more than $15,000 per year.

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