SD Average daily benefit purchased: $ 141 per day.

More on South Dakota

The state of South Dakota, like most states, has created a program to help with the problem of lack of Long Term Care Insurance coverage for its residents. This “crisis” in long-term care is a national condition and not specific to South Dakota by any means. As South Dakota’s population ages and awareness of the need for Long Term Care Insurance still remains low, many people are waking up to the reality that they will someday need long-term care and thus should purchase a Long Term Care Insurance policy. Long Term Care Insurance covers the cost of services such as nursing homes, in-home care and assisted-living care when one is unable to care for themselves and is not covered by regular health insurance and only by Medicaid if one qualifies, which can be difficult without exhausting all of your assets.

A recent study found that 7 in 10 Americans have made no plans for long-term care and many were not even aware of this type of insurance and what it covers. Furthermore, a full 35% think they will never need long-term care assistance and given that the Department of Health
and Human Services estimates that 67% of all Americans will need long-term care at some point after they pass age 65, there is a huge mismatch between reality and perception here. Thus, many Americans are now at risk of having to exhaust their nest egg or rely on their children or other relative to care for them in retirement should they become unable to care for themselves.

Residents of South Dakota are invited to participate in the South Dakota Long-term Care Partnership Program which is public-private partnership that offers individuals quality, affordable long-term care insurance and a way to receive needed care without depleting all their assets. South Dakota aims to reward those who do their part in solving this “crisis” of Long Term Care Insurance by planning ahead and protecting themselves and their assets. Basically, the South Dakota Long-term Care Partnership program “provides an alternative to spending down or transferring assets by forming a partnership between Medicaid and private long-term care insurers.” This enables partnership policyholders to shield their assets should they need to apply for Medicaid as normally one is required to exhaust all assets before qualifying for Medicaid’s long-term care coverage.

Some of the benefits of the partnership plan include:

• Partnership policies are tax-qualified plans under federal law and provide inflation protection benefits for purchasers.

• The South Dakota Long-Term Care Partnership Program provides an alternative to spending down or transferring assets by forming a partnership between Medicaid and private long-term care insurers.
• Once private insurance benefits are used, special Medicaid eligibility rules are applied if additional coverage is necessary.

You can start planning today for your future long-term care needs and securing all that you’ve worked so hard to achieve for your retirement by purchasing a Long Term Care Insurance policy. LTC Tree can assist you in finding a plan through the South Dakota Long Term Care Partnership Program that is right for you, no matter your age or financial status. Get in touch with us if you want to learn more.