Preserve wealth via state Medicaid partnerships

Four states have formed partnerships with long-term-care insurers and Medicaid. This enables resident seniors to preserve their savings when their insurance coverage is exhausted and they subsequently qualify for Medicaid coverage. Each dollar of insurance paid is a dollar preserved in assets (in addition to state minimums), according to Insurance Information Institute. Due in part to passage of the Deficit Reduction Act of 2005, seniors entering nursing homes had to spend down their savings to qualify for Medicaid. If you reside in a state other than California, Connecticut, Indiana and New York, check with your state’s insurance commissioner’s office to see if such a plan is coming.