The Dallas Morning News reports that in 2009 Texas will allow senior citizens with long-term healthcare insurance to keep more of their personal savings if they need to use Medicaid. Texas insurance officials will offer “private partnership policies” that will offer asset matching protection for those who purchase long-term healthcare insurance. For every dollar an individual uses in coverage from a long-term healthcare insurance policy he/she will be allowed to keep that same amount in their retirement savings or other personal assets if they ever need to use Medicaid.
For example, if a senior citizen uses $150,000 of a long-term healthcare insurance policy and needs to use Medicaid, they will be allowed to keep $150,000 in personal assets such as a retirement account or savings. Currently, Medicaid only allows recipients to have $2000 in savings to qualify for the Medicaid program.
Many seniors go bankrupt trying to pay medical expenses, especially nursing home costs which can decimate even the most fully funded retirement account. It’s good to see that Texas is taking proactive steps to make sure that seniors are rewarded for proper planning when it comes to healthcare insurance in their golden years.