Eric R Oalican

Long-term care insurance is private medical insurance which provides a daily benefit for skilled nursing home care. Most long-term care insurance policies also cover costs for home care services as well as assisted living facility care. In Massachusetts, certain types of long-term care insurance can also protect a home from the placement of a MassHealth lien should the home owner enter a nursing home. Currently, a home is protected if the policy covers $125 per day of skilled nursing home care for a period of two years, at the time one enters a nursing home. Unfortunately, MassHealth applicants who used their coverage at home or in an assisted living facility prior to entering a nursing home lost the protection on their home if they did not have the required amount of remaining coverage when they entered the nursing home. The result was the exposure of the house to a Medicaid lien despite the applicant having insurance they thought would always protect the home.

Recognizing this problem, the Massachusetts Chapter of the National Academy of Elder Law Attorneys (MANAELA) sought legislation clarifying the long-term care insurance regulation addressing exempting homes from Medicaid liens. Recently, the MANAELA-supported bill passed in the House, effectively exempting homes from a lien if the policy met the minimum coverage at the time of purchase, rather than at the time of admission to a nursing home.

Now, the bill appears headed for final passage in the Senate. Should the bill become law, then long-term care insurance will continue to be one of several strategies to protect homes from MassHealth liens. Stay tuned…

If you would like to learn more about the benefits of long-term care insurance and other asset protection strategies, please contact one of the attorneys at Oalican Law Group at (508) 821-5599.