Federal law allows consumers to qualify for Medicaid, retain assets

Under a new federal law, residents of about 20 states in 2007 will be able to purchase simplified, long-term care coverage, and if that coverage runs out, they could qualify for Medicaid, even if they have assets totaling more than $2,000, the South Florida Sun-Sentinel reports.

Under the law, residents will be able to retain up to hundreds of thousands of dollars in assets, while, currently, a person must have less than $2,000 in assets to be eligible for Medicaid.

The law will allow private insurers who are certified by the states to sell the long-term care plans.

Insurers must meet mandatory state standards, such as including inflation protection.

The cost of plan premiums, the length of coverage time and other details of the plans have not yet been determined.

In addition, it is unclear whether a partnership plan purchased in one state will be valid in another state -- "potentially a huge issue" since long-term care policy holders typically purchase insurance 25 to 30 years before they will need it, the Sun-Sentinel reports.

In Florida, the state Agency for Health Care Administration is developing the program based on national guidelines, and officials say the plans could be available by next year (Lade, South Florida Sun-Sentinel, 9/18).