Long term care insurance (LTCi) is a wonderful option for those who can afford it, or have purchased it early. LTCi is an effective way to pay for long term care – if the daily rate it pays out covers all of your costs. But what happens when you have insurance that pays only a portion of the daily rate? You will have to pay the difference out of pocket – AND – the daily rate counts towards the income received for eligibility criteria for the ALTCS program. Easily with the LTCi payout, the applicant will be over the $1,911 monthly amount allowed for ALTCS. So what do you do?
I got a call yesterday from a daughter whose mom has been in a skilled nursing facility for three years, receving $50/day from a LTCi policy and having paying the difference herself of the $167/day bed. No one told her that mom could get on ALTCS even though her income was now higher (her social security plus the $50/day from the LTCi) than the $1,911. But the truth is YES, mom can get on the state ALTCS program. All she needs is an Income Only Trust or Miller Trust. Now, with this information, the daughter can apply for ALTCS get mom the program. Mom will continue to pay her income and the LTCi money but the daughter will not have to supplement the difference. There are options for everyone – just ask!