As one of the states which not only participates in the partnership program, but seriously promotes the reciprocal agreement, the Iowa long term care partnership policy is really worth having.
Under the reciprocal agreement, an Iowan who holds or owns a qualified partnership long term care insurance (LTCI) policy which was issued in Iowa can receive asset protection even in the state that he moves to. This, however, is upon satisfying the reciprocity standards of the Iowa partnership program, and these are as follows:
With this type of LTCI policy, Iowans will surely be protected from the continuous rise of long term care (LTC) cost, as rates of LTC facilities are rising rapidly. News even has it that price tags of institutional and community-based LTC facilities are going to increase big time along with home care rates in 15 years.
In Iowa right now, one has to pay a home health aide $46,332 annually for custodial care. The scope of a home health aide’s job consists of assisting an elderly during meal times, bathing, dressing, usage of toilet, and transferring from the bed to the chair or vice versa.
If you are dead set to spend all of your retirement years in Iowa, then there’s nothing much to consider before buying a partnership LTCI policy.
However this being the case, the rates of nursing homes, assisted living facilities, adult day care health centers, and home care services in other parts of the country vary. If you don’t plan to settle down in Iowa after retirement, check out the cost of care in the state of your choice before purchasing a partnership LTCI policy.
If you choose to migrate to Iowa’s neighboring state Minnesota, or perhaps Missouri, you have to study the cost of care in both states and tailor your LTCI policy to the figures that are affixed to the LTC facilities and services in these places.
Research shows that home care in Missouri is more affordable than in Iowa. In the former a home health aide’s annual rate is $43,472 as opposed to Iowa’s $46,332.
Meanwhile, community-based LTC facilities in Minnesota are more expensive than home care services, but relatively more affordable than what is offered in Iowa. For instance, an assisted living facility in Minnesota amounts to $37,200 a year according to Genworth Financial while in Iowa it’s higher by almost a thousand dollars at $38,184.
Though the reciprocity feature of an Iowa long term care partnership policy gives people more freedom to choose where they want to grow old, it’s best to pay more attention to the cost of living and care in other states so you don’t end up spending more than what you can.