Nevada Long Term Care Insurance, Costs and Partnership Information
Nevada is one of the states that does not only have a high-cost of living but very expensive long term care services, as well. Nevada ranks 5th among states with a high average private pay for adult day care and 9th for Medicare-certified home health aide services.
Genworth Financial, a leading global insurance company, compiled a statewide study of Long Term Care costs in the state of Nevada. The study revealed that families can spend an average of $45,760 annually for homemaker services required by loved ones who choose to receive care in their homes. Listed below are the current costs of various Long Term Care settings in metro areas in Nevada.
|Region||Homemaker Services Hourly Rate
|Home Health Aide Hourly Rate
|Assisted Living Facility Monthly Rate
|Nursing Home Daily Rate
|Nursing Home Daily Rate
|Rest of State||$20||$21||$3,100||$220||$225|
Nevada Long Term Care Partnership
The Nevada Long Term Care Partnership Program is a program between the State of Nevada and private insurance companies. This public-private partnership aims to reduce Medicaid expenditures for Long Term Care services. The program also encourages Nevadans to consider private funding of their care needs through purchase of qualified Long Term Care policies and rely on the policy's insurance benefits before accessing Nevada's Medicaid program.
The Deficit Reduction Act of 2005 allowed expansion of Partnership programs to other states, including Nevada. But the State of Nevada has to submit first a Medicaid State Plan Amendment or SPA which must be approved by the Centers for Medicare and Medicaid Services or CMS. The SPA that allows the State of Nevada to participate in the Long Term Care Partnership Program became effective in January 1, 2007.
Partnership Insurance Policies
A "Partnership policy" allows disregard of a policyholder's assets during Medicaid eligibility process should the policyholder require continued coverage after exhausting benefits of his qualified insurance policy. The amount of assets disregarded is equal to the amount of insurance benefits paid by his qualified policy. Therefore, policyholders are not forced to spend down their assets to satisfy Medicaid's income and asset limits, allowing Nevadans to retain their resources and life's savings.
Buying a Partnership-qualified policy, however, does not guarantee instant access to Medicaid coverage as other eligibility rules still apply.
To be considered as a Partnership policy, Long Term Care insurance policies must include the following features, as outlined in Bulletin No. 06-010 of the Nevada Division of Insurance dated December 6, 2006:
- Product name displayed prominently and must include the word "Partnership"
- First page of the policy contains issue date, prominently displayed
- A statement certifying that the policy meets the definitions of a "qualified Long Term Care insurance" as outlined in section 7702B(b) of the Internal Revenue Code. The statement must be made by an officer of the insurance company.
- A statement certifying that reports will be made regularly to the Secretary of Health and Human Services. The statement must again be made by an officer of the insurance company and must include a notification when benefits are paid, and the payment amount; a notification as to when the policy terminates; and other information that may be required by the Secretary of Health and Human Services.
- A statement that the policy includes inflation protection. This feature provides protection against inflation. Policies are required to include compound inflation protection for individuals below age 61 whereas some type of inflation protection must be included in policies issued to individuals aged 61-75. Inflation protection is not required for individuals aged 76 and above.
- A statement certifying that the partnership policy will be marketed only by approved agents who underwent Partnership training.
- A list of agents approved to offer and market Partnership policies for the company.
Moreover, the person who owns the policy must be a resident of Nevada at the time that the coverage became effective.
Obtaining a Partnership Policy in Nevada
Insurance companies offering Partnership policies must file and obtain approval from the Nevada Division of Insurance before marketing the policies. The Nevada Administrative Code (NAC) 687B.075 requires insurance companies to state if a Long Term Care policy is a qualified Partnership policy or not.
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Nevada Long Term Care Insurance References
- State-Specific Data From The Genworth 2010 Cost of Care Survey.
- Bulletin No. 06-010. Long-Term Care Partnership Policies. 2006. Nevada Division of Insurance.
- Nevada. Across the States. Profiles of Long-Term Care and Independent Living. AARP.
- Division of Insurance. The Nevada Department of Business and Industry.
- Chapter 687B.075 – Outline of Coverage. Contracts of Insurance. Nevada Administrative Code (NAC)