Long Term Care Insurance California Partnership Cost & Companies
California Long Term Care Planning
Planning ahead for future long term care needs is a critical part of retirement planning. Many people have had first-hand experience with a loved one who needed long term care services. These experiences underscore the reality of the financial and emotional stress when a loved one needs long term care.
A long term care plan can protect your retirement assets. Plus it gives you the peace of mind, knowing you can cover the cost of long term care if you need in the future. Long term care insurance also protects your family from having to be caregivers. And it enables you to choose where you’ll receive any care needed in later years.
Long Term Care Costs and Medicare
Medicare is the federal health insurance program for people over 65 and for some younger people with disabilities. But Medicare does not pay for most long term care services. Specifically, Medicare does not pay for custodial care which makes up more than 90% of long term care. An example of custodial care is when someone needs help with walking, bathing, eating, dressing and using the toilet.
Custodial care is also what people need most when they have a physical impairment from a stroke. Or, due to cognitive impairment from dementia or Alzheimer’s disease.
Who Needs Long Term Care Services?
According to government statistics it’s important to plan ahead for long term care needs. The Department of Health and Human services reports that about 70 percent of people over age 65 will need some type of long term care (LTC) during their lifetime.
But the need for long term care does not only impact seniors. Consider that 40 percent of people currently receiving long term care services are ages 18 to 64. This page will provide you with information about California long term care insurance policies designed to protect your assets and family from the catastrophic cost of long term care services.
Types of Long Term Care Insurance
There are two types of protection for long term care needs:
- Traditional Long Term Care Insurance.
- Hybrid Long Term Care Insurance. This includes long term care annuities and long term care life insurance.
Each type has its specific advantages. One of our independent long term care agents can explain the differences to help you decide which is best for you. Simply complete the form on this page to request long term care insurance comparisons specific to your situation.
The Best Age To Buy Long Term Care Insurance
Like most advisers, we recommend buying long term care insurance in your fifties or early sixties. The primary reasons for this recommendation are:
- The younger you are when you buy a policy, the lower the annual premiums.
- By the time you reach your mid sixties, you’re more likely to have a medical condition that makes you ineligible for a preferred-health discount, or makes it tough to get coverage at all.
- Even though you’ll have to pay premiums a longer period of time, you’ll typically pay less overall than someone buying at an older age.
So it almost never pays to wait. And, while you’re waiting, you’re uninsured. If an accident or illness happens causing you to need long-term care, you’ll have to pay out of pocket.
California Long Term Care Costs
One of the largest studies on California long term care costs is from Genworth Long Term Care Insurance. The Genworth Financial 2018 Cost of Care Survey encompasses both national and regional long term care costs. It surveyed over 15,000 long term care providers in 440 regions. John Hancock Long Term Care Insurance also conducts an extensive long term care survey. Their study includes a Cost of Care Calculator to estimate the future cost of long term care.
California long term care rates are important for California residents to consider. Because cost of care is a key indicator to how much LTC insurance coverage you should get. If a person has enough assets to self-insure, the cost of care study indicates how much money to set aside for potential long term care expenses. It’s also critical to take into account what inflation will do to the cost of long term care.
California Long Term Care Rates – 2018 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private)||Assisted Living
|Home Health Aide (44 Hrs/wk)|
|Los Angeles Area||$109,500||$91,250||$54,000||$57,200|
|San Diego Area||$127,750||$102,200||$54,000||$57,589|
|San Francisco Area||$139,795||$109,777||$66,000||$67,496|
|San Jose Area||$141,803||$109,500||$66,000||$72,072|
|San Luis Obispo Area||$100,375||$91,250||$65,400||$61,776|
|Santa Cruz Area||$100,740||$96,908||$67,140||$69,784|
|Santa Maria Area||$160,783||$127,750||$57,900||$65,208|
|Rest of State||$119,720||$97,820||$49,650||$59,488|
California Partnership For Long Term Care Review
The California Partnership for Long Term Care Insurance is a special program for Californians. This program is offered by the California Department of Health Care Services in conjunction with private long term care insurance companies. The Long Term Care Insurance California Partnership requires the LTC insurance companies offer specific benefits. This rule can help simplify designing your long term care insurance coverage. These types of long term care insurance California policies are known as “Partnership Policies” and fall under the oversight of the California Department of Insurance. California Partnership for Long Term Care Insurance policies also provide Medi-Cal Asset Protection.
Lifetime Asset Protection: This feature assures that long term care costs won’t reduce you to poverty, even if you deplete your insurance benefits. For example, your California Partnership for Long Term Care Insurance policy pays for care like any other long term care insurance policy. But, unlike a traditional policy, each dollar your California Partnership policy pays out in benefits entitles you to keep a dollar of your assets. This asset protection works should you ever need to apply for Medi-Cal services.
If you need more care than provided by your Long Term Care Insurance California Partnership policy, you won’t have to become impoverished. In other words, you’ve run out of insurance benefits and still need care. You could then apply for Medi-Cal to cover your ongoing cost of care and not have to “spend down” your savings to poverty level. Each dollar a Partnership Policy pays is protected against Medi-Cal “spend down” rules (in other parts of the country this is “Medicaid spend down”). A part of your income may have to go toward the cost of care, but the assets you protected by purchasing a California Partnership for Long Term Care Insurance policy remain for you, a spouse or your heirs.
California Partnership For Long Term Care Reciprocity
For those purchasing a qualified Long Term Care Partnership policy in another State, under their Long Term Care Partnership program, reciprocity means they will not lose their asset protection if they move to a state with reciprocity. So, the state the person moves to would also recognize accumulated asset protection for Medicaid qualification if the person were already receiving long term care benefits from their Long Term Care Partnership policy before moving to the new state. The State of California does not currently have reciprocity with other states Partnership Policies.
The Cost of Long Term Care Insurance In California
How much does long term care insurance cost in California? The answer: It depends on your age and health history at the time you buy the insurance. Practically speaking, the younger and healthier you are the lower the cost. Your long term care insurance premiums also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period
- Inflation Protection (if chosen)
Long Term Care insurance California Partnership rates are like non-partnership policies. This is true when coverage has similar benefits. But, some mandated features of the Long Term Care Insurance California Partnership can limit flexibility in benefit design. An example is mandatory age related inflation protection. Thus it may be beneficial to consider traditional LTC insurance as a wider range of choices may be available and more suitable to a particular situation. And insurers have different sweet spots based on your age and health and their own claims experience.
Complete the form on this page to request long term care insurance costs and comparisons specific to your situation.
Finding The Best Long Term Care Insurance In California
California Partnership for Long Term Care Insurance policies are offered by select LTC insurance companies. These companies must meet certain criteria mandated by The State of California. And insurance agents representing these policies must maintain a special certificate of training.
Our independent long term care insurance agents are certified to offer California Partnership for Long Term Care Insurance policies. Plus we also offer traditional non-partnership policies.
Here is a list of long term care insurance companies offering coverage in California:
Get Long Term Care Insurance California Quotes!
ACACIA Insurance has specialized in long term care planning solutions since 1990. We give you professional, unbiased advice so you can decide if Long Term Care Insurance is right for your situation. We shop all the major long term care insurance companies in California and give you:
- Price comparisons customized for your specific needs from respected companies like Transamerica, Mutual of Omaha, Northwestern Mutual, Genworth Financial, John Hancock Insurance, and other major carriers.
- Benefit comparisons of each company’s policy. This comparison covers both the similarities and differences of each long term care insurance plan.
- Financial stability reviews of each long term care insurance company’s ratings, asset base and claims paying experience.
Complete this form to receive your free long term care quotes and planning guide.