MathJak,
Thanks for your response. I have to agree with all you have stated. The one person that I know of that is self insuring his medical future, has done pretty much what you have defined and sold his rental properties and put all those monies in a bucket account. All of the properties were sold but one, that property is a rental and feeds his medical bucket account on a monthly basis. This bucket is a stand alone account and is to be used only for medical purposes. He is on medicare so preventive maintenance is handled and not affecting or subtracting from this account.
I dont know what a partnership plan is! It may be something available in NY but not in Ohio, where I reside. I hope to be able to investigate to see if it is available, it sounds like a great plan and you have it well though out.
Thanks for your feed back. If you have any info on the partnership plan, please let me know.
Ohio has partnership plans ..they have a dollar for a dollar plans not total asset...for every dollar medicaid spends on your care after the insurance runs out , a dollar in assets is preserved.
Income & Asset Protection ohio
An Ohio Partnership for Long-Term Care qualified policy provides you, as the purchaser, with the right to apply for Medicaid under modified eligibility rules that include a special feature called an ‘asset disregard’.
This allows you to keep assets that would otherwise not be allowed if you need to apply, and qualify, for Medicaid in order to receive additional long-term care services. The amount of assets Medicaid will disregard is equal to the amount of the benefits you actually receive under your long term care Partnership qualified policy.
Since these policies must include inflation protection, the amount of the benefits you receive can be higher than the amount of insurance protection you originally purchased.
If you have a Partnership-qualified long term care insurance policy and receive $300,000 in benefits, you can apply for Medicaid and, if eligible, retain $300,000 worth of assets over and above the State’s Medicaid asset threshold. In most states the asset threshold is $2,000 for a single person. Asset thresholds for married couples are typically more generous.
Years ago you could protect your assets by creating a trust, but today only an irrevocable trust would be exempt and it would still be subject to the 60-month "look back" period. To be exempt, assets must be transferred 60 months before you apply for Medicaid. (We won't know with 100% certainty what will happen 60 seconds from now let alone 60 months.)
Under a qualified partnership policy, personal assets in the amount of the total benefits paid are disregarded when Medicaid asset eligibility is calculated. For each dollar of benefits paid, one dollar of assets is not counted toward the eligibility limit. This means you get to keep those assets and don't have to spend them before qualifying for Medicaid.
With a Partnership policy it also means that the state will not seek to recover money spent for your care from your estate. Estate recovery means that the state can require repayment from your estate for any costs paid by Medicaid. Thirty states have filial laws that that give the state the right to require your children to reimburse Medicaid for your expenses.
https://www.partnershipforlongtermcare.com/ohio-partnership/index.html