Owning long-term care insurance in California can play a significant role in your family’s future well-being. By planning ahead you can provide security and peace of mind for years to come by knowing you can:
✔ Secure quality, affordable long-term care.
✔ Safeguard your assets for your spouse and other heirs.
✔ Relieve family members and friends from having to provide extended-care.
California Long-Term Care Rates – 2024 (annual) | |||
Nursing Home (private room) | Assisted Living (private room) | Home Care (44 hours/week) | |
State Average | $131,349 | $72,570 | $72,846 |
Region | Nursing Home (private room) | Assisted Living (private room) | Home Care (44 Hours/week) |
Bakersfield | $114,027 | $48,784 | $59,853 |
Chico | $130,390 | $59,409 | $68,751 |
El Centro | $131,349 | $58,545 | $68,694 |
Fresno | $132,533 | $53,581 | $69,339 |
Hanford-Corcoran | $138,691 | $57,476 | $72,846 |
Los Angeles | $117,802 | $76,053 | $66,683 |
Madera | $112,292 | $50,563 | $70,044 |
Merced | $123,706 | $59,779 | $75,650 |
Modesto | $140,611 | $50,907 | $69,346 |
Napa | $165,669 | $92,658 | $70,025 |
Oxnard-Thousand Oaks-Ventura | $127,385 | $72,733 | $78,442 |
Redding | $133,406 | $62,894 | $71,445 |
Riverside-San Bernardino-Ontario | $119,579 | $55,036 | $69,208 |
Sacramento-Roseville | $125,380 | $72,404 | $66,419 |
Salinas | $142,655 | $87,917 | $81,479 |
San Diego-Carlsbad | $135,241 | $66,530 | $64,620 |
San Francisco | $140,819 | $86,920 | $79,249 |
San Jose-Sunnyvale-Santa Clara | $135,713 | $89,618 | $86,334 |
San Luis Obispo-Paso Robles | $128,620 | $80,177 | $69,860 |
Santa Cruz-Watsonville | $126,812 | $95,561 | $90,554 |
Santa Maria-Santa Barbara | $171,030 | $82,231 | $74,318 |
Santa Rosa-San Rafael | $140,107 | $86,517 | $85,323 |
Stockton-Lodi | $127,035 | $53,002 | $73,120 |
Vallejo-Fairfield | $124,590 | $74,298 | $63,419 |
Visalia-Porterville | $99,764 | $55,928 | $69,771 |
Yuba City | $123,935 | $55,989 | $80,162 |
No, Medicare does not cover long-term care (custodial care). This type of care makes up more than 90% of all long-term care services. Examples of custodial care is when you need help with walking, bathing, eating, dressing or using the toilet. This is what people need most when they have a physical impairment from a stroke. Or, due to cognitive impairment from dementia or Alzheimer’s disease. Don’t make the mistake of thinking Medicare covers long-term care costs. It doesn’t.
Further, about 80% of care at home is provided by unpaid caregivers. With more than half of this care including intensive caregiving assistance with personal care such as bathing or feeding.4 And it’s not only seniors that need long-term care. Over 35 percent of people currently receiving care are between the ages of 18 and 64.5
We’re often asked the best age to buy long-term care insurance. Like most financial planners, we recommend planning for long-term care in your fifties or early sixties for the following reasons:
Long-term care insurance options in California include: Traditional LTC, Hybrid Life LTC, and Hybrid Annuity LTC. Another alternative is Short-Term Care Insurance which is typically chosen because of health or age limitations.
California Partnership for Long-Term Care policies combine private long-term care insurance with Medicaid (Medi-Cal) asset protection. Only Partnership program policies provide this type of Medicaid asset protection when you need nursing facility, assisted living facility or home health care.
The unique asset protection benefits of the California Partnership for Long-Term Care program apply if your long-term healthcare needs last longer than the insurance benefits of your Partnership policy. For example, for every dollar your California Partnership for LTC policy pays in health care costs, a dollar of assets is protected from the long-term care Medicaid (Medi-Cal) asset limit. The protected assets are also exempt from Estate Recovery in the same amount as the health care costs paid by your Partnership policy.
Even though California Partnership for Long-Term Care insurance premiums are like regular policies, we recommend comparing them with regular long-term policies. You may find that non-Partnership policies have options that better fit your needs. This includes Hybrid Long-Term Care Insurance plans not available under the California Partnership for Long-Term Care.
NOTE: As of the date of this writing, no insurance companies are currently offering LTC Partnership qualified products in California. This means you cannot buy a California Partnership for Long-Term Care policy at this time. This does not affect current, active insureds who are Partnership qualified.
Traditional non-Partnership and Hybrid Long-Term Care Insurance plans are available.
California does NOT participate in the national reciprocity agreement.
In states with Reciprocity, you can buy a qualifying Partnership for Long-Term Care policy in one state and maintain the special asset protection benefit when you move to another state with reciprocity. Your new state would recognize accumulated asset protection for Medicaid qualification if you’re already receiving benefits from your LTC Partnership policy before moving. The majority of states have Partnership Reciprocity and California is one of the exceptions.
What is the best long-term care insurance company in California? The answer depends on your personal situation. Besides being with a high ranking company, the plan needs to have the right set of benefits for your needs.
Our LTC Advisors help you choose the best long-term care plan for your situation. We compare several insurance companies to find you the right plan at the lowest cost. Here is a list of long-term care insurance providers in California we can compare for you:
Our specialists offer objective guidance on a wide range of long-term care planning products and strategies. Expect personalized service on topics such as:
✔ Choosing from a variety of long-term care planning products
✔ Suggestions for the insurance company best suited to your situation and goals
✔ Assistance with medical underwriting (qualifying) for insurance coverage
About the Author: Craig Matesky