The new Medicaid law will also permit a long-term care insurance partnership to be instituted by all 50 states. This will allow all states to offer long-term care insurance policies. These policies, while by no means inexpensive, will be required to provide a minimum of three years of coverage for nursing home care. The benefit is that after the three years of coverage, the insured will qualify for Medicaid regardless of the amount of assets they have. The purchase of qualifying long-term care insurance under current law and the new law can also bar estate recovery once the applicant has died. Excess income above the limits allowed, however, will still need to be paid to the nursing home once Medicaid coverage begins.
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