A lot of people have long term care insurance to help with nursing home and assisted living costs. It is generally considered a good idea when it is affordable. Rarely does having long term care insurance lead to a negative result.
Things have changed in Florida with Rosenshein v. Florida Department of Children (Fla. Ct. App., 3rd Dist., No. 3D07-989, Oct. 24, 2007). A Florida Appeals court agreed with the state's determination that payments received from a long term care insurance policy are income. The determination that those payments are income can result in the insured creating their own ineligibility for Medicaid benefits because they have long term care insurance. Quite the paradox.
Does this mean everyone should abandon long term care insurance to help pay for nursing home costs? I don't think so. This situation came about because the people involved most likely did not pay close enough attention to the details to find an appropriate long term care insurance policy for this case. It was a good idea, but it looks like careless implementation.