Long-Term Care Insurance in Minnesota

What long-term care insurance covers

A long-term care insurance policy pays a benefit toward the cost of care when someone can no longer manage on their own. Depending on the policy, that can include in-home care, adult day services, assisted living, memory care, and nursing home care. The policy pays a set daily or monthly amount, up to a lifetime maximum, rather than the full bill.

Coverage varies a lot from one policy to the next. Read the specific policy to see which care settings it covers, the daily or monthly benefit amount, the lifetime maximum, and whether it has an inflation rider that grows the benefit over time.

When benefits start: the trigger and the elimination period

Two things control when a policy begins paying. First, the benefit trigger: most policies pay once the person needs help with at least two activities of daily living, such as bathing, dressing, eating, or transferring, or has a cognitive impairment like dementia. A doctor or the insurer usually has to certify this.

Second, the elimination period: a waiting period, often around 90 days, during which the family pays out of pocket before benefits begin. Check the exact trigger and elimination period in the policy, because they decide both when help arrives and how much you pay in the meantime.

How to use a policy you already have

If a parent already owns a policy, these steps help you actually use it:

• Find the policy documents and the insurer's claims phone number.
• Read the benefit amount, the lifetime maximum, the benefit trigger, the elimination period, and any inflation rider.
• Get the doctor's certification that the person needs help with daily activities or has a cognitive impairment.
• File the claim with the insurer, and choose care that the policy covers.
• Track the elimination period, and keep careful records of care and payments.

The Minnesota Long-Term Care Partnership

Minnesota has a Long-Term Care Partnership, a public-private arrangement that rewards buying a qualifying policy. When a Partnership policy pays out, Minnesota disregards that same amount of assets if the person later applies for Medical Assistance. So a policy that pays $200,000 in benefits protects about $200,000 in assets, on top of the normal allowance, and those protected assets are also shielded from estate recovery.

The Minnesota Department of Commerce reviews and approves long-term care policies, and the Department of Human Services administers the Partnership. Before buying, confirm the company and agent are licensed with Commerce, and ask specifically whether a policy is Partnership-qualified.

Is it worth buying now?

Long-term care insurance is usually bought earlier in life, in a person's 50s or 60s, when premiums are lower and health qualifies. Late in life it is often expensive or not available. If a policy already exists, use it. If not, families more often rely on a mix of private funds, VA benefits, and eventually Medical Assistance and the Elderly Waiver, and some consider newer hybrid life-plus-long-term-care products. A licensed agent, and for asset questions an elder-law attorney, can help you weigh it.

How to apply, step by step

1. 1

   Find the policy and insurer

   Locate the policy documents and the insurer's claims number. If you are not sure a policy exists, check financial records and ask the person's insurance agent.

2. 2

   Read the key terms

   Note the daily or monthly benefit, the lifetime maximum, the benefit trigger, the elimination period, and any inflation rider.

3. 3

   Get the certification of need

   Most policies require certification that the person needs help with two or more daily activities, or has a cognitive impairment such as dementia.

4. 4

   File the claim

   Submit the claim to the insurer and choose care the policy covers. Start early, since the elimination period is time you pay out of pocket.

5. 5

   Keep records and get help

   Track the elimination period and keep receipts. A CasperCare advisor can help you match care options to what the policy covers, at no cost.