Kentucky Long Term Care Costs & Insurance Information
Introduced by Representatives Brad Montell and Jeff Greer, the Kentucky Long Term Care Insurance Partnership Program was signed into law by Governor Steve Beshear on April 7, 2008. It was established as a partnership between the Kentucky Department of Insurance and the Department for Medicaid Services to maximize the use of long term care insurance policies and to help lessen the financial task of the state's Medicaid by encouraging the residents to purchase a private insurance policy.
Based on KRS 304.14-120, the Department of Insurance has the right to approve and authorize any long term care partnership insurance policy that is available in the state. These policies should continuously meet the relevant federal and state laws and regulations. The Department also makes sure that any agent who sells long term care partnership insurance understands and can demonstrate the features and details of such policy.
Below is the table of the 2010 Kentucky median cost care data by Genworth Financial:
| Region | Home Health Aide Hourly Rate (Medicare Certified) |
Assisted Living Facility Monthly Rate (Private room) |
Nursing Home Daily Rate (Semi-private room) |
Nursing Home Daily Rate (Private room) |
| Bowling Green | $15 | $3,660 | $179 | $190 |
| Elizabethtown | $17 | $2,525 | $179 | $198 |
| Lexington-Fayette | $17 | $2,600 | $170 | $190 |
| Louisville-Jefferson County | $18 | $3,148 | $181 | $204 |
| Owensboro | $15 | $2,333 | $183 | $191 |
| Rest of State | $15 | $2,825 | $170 | $177 |
Features of Partnership Long Term Care Insurance in Kentucky
The following remain necessary features of a Long Term Care Insurance Partnership Program of every participating state:
- Must have a minimum daily benefit amount
- Must have a 3-year minimum benefit period
- Must have inflation protection at younger ages.
About Inflation Protection in Kentucky
Inflation protection is an important feature of long term care insurance because it keeps pace with the increased cost of expenses and progresses with inflation by increasing the daily or monthly benefit amount of the policy.
- Age 61 below - Automatic compound inflation of at least 5%
- Age 61-75 - Automatic annual inflation of at least 5% (simple or compound)
- Age 76 - No inflation required (may be purchased by choice)
Kentucky Reciprocity Standards
As part of the reciprocity standards of the states that have Long Term Care Insurance Partnership Program, these states will accommodate and give reciprocity to an Iowan who transfers to their state. This would make the policy holder qualified for asset protection.
The following are the reciprocity standards as published on the September 2, 2008 issue of Federal Register:
- 1. Medicaid applicants who purchased an LTC policy in a state participating in the reciprocal agreement and who has received benefits under their private LTC policy will receive an asset disregard in an amount equal to the benefits received (dollar for dollar).
- 2. The asset disregard procedure and calculations must be uniform among the states participating in the reciprocal agreement.
- 3. Amounts equal to the benefits received under the LTC policy will be exempt from Medicaid estate recovery.
- 4. If a person moves from the state in which his or her partnership policy was issued and later applies for Medicaid in another state participating in the agreement where they are determined to be eligible for Medicaid using the asset disregard, the asset disregard may not be revoked upon eligibility redetermination if the state subsequently withdraws from the reciprocal agreement.
The above reciprocity standards only apply to the asset disregard, effective on January 1, 2009. Applicants may only be qualified for the asset disregard eligibility if the state wherein they purchased their LTC policy and the state where they apply for Medicaid both participate with the reciprocal standards.
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