Long Term Care Insurance California Costs, Companies & Quotes
California Long Term Care Planning
Planning ahead for future long term care needs is a key 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 it 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.
How Many People Need Long Term Care
According to The U.S. Department of Health and Human services, 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. Currently 40 percent of people receiving long term care services are between 18 and 64.
Does Medicare Pay for Long Term Care?
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 all long term care services. An example of custodial care is when someone needs help with walking, bathing, eating, dressing or 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. Don’t make the mistake of thinking Medicare covers long term care costs. It doesn’t.
Types of California Long Term Care Insurance
There are two types of insurance 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. Our comparisons explain the differences to help you decide which may be best for you.
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 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. Our long term health insurance quotes and comparisons take into account your age, health history, and all applicable health discounts.
California Long Term Care Costs
The largest study on California long term care costs is from Genworth Financial Long Term Care Insurance. Their 2018 Cost of Care Survey includes national and regional long term care costs. It surveyed over 15,000 long term care providers in 440 regions. Another major study is from John Hancock LTC Insurance. Both studies provide cost of care calculators to estimate the future cost of long term care. Knowing the cost of long term care services will help you determine how much protection you need.
Here is the current cost of long term care in California:
California Long Term Care Rates – 2018 (annual) |
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| Region | Nursing Home (private room) | Nursing Home (semi-private) | Assisted Living (private room) |
Home Health Aide (44 Hrs/wk) |
| California State Median |
$117,804 | $100,375 | $54,000 | $59,488 |
| Bakersfield | $110,460 | $90,155 | $37,800 | $52,624 |
| Chico | $111,143 | $101,470 | $48,000 | $53,196 |
| El Centro | n/a | n/a | $43,800 | $57,200 |
| Fresno | $116,800 | $103,660 | $42,000 | $55,209 |
| Hanford Area | $103,722 | $100,072 | $42,768 | $n/a |
| Los Angeles Area | $109,500 | $91,250 | $54,000 | $57,200 |
| Madera | $93,805 | $88,330 | $39,870 | $57,200 |
| Merced | $103,478 | $94,535 | $42,000 | $58,298 |
| Modesto | $105,485 | $106,580 | $38,400 | $54,912 |
| Napa | $146,548 | $119,538 | $65,100 | $60,632 |
| Oxnard | $116,435 | $98,550 | $54,900 | $61,433 |
| Redding | $131,400 | $104,938 | $46,800 | $58,344 |
| Riverside Area | $104,025 | $90,703 | $42,000 | $54,912 |
| Sacramento Area | $129,758 | $102,200 | $53,670 | $59,488 |
| Salinas | $144,175 | $109,500 | $66,000 | $64,064 |
| 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 |
| Santa Rosa | $130,185 | $111,095 | $66,000 | $69,784 |
| Stockton Area | $118,906 | $98,072 | $42,000 | $59,488 |
| Vallejo Area | $106,580 | $98,003 | $52,200 | $54,912 |
| Visalia Area | $91,250 | $78,475 | $44,100 | $53,768 |
| Yuba City | $149,650 | $89,425 | $44,148 | $61,776 |
| 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 combines private long term care insurance with special access to Medi-Cal. It is offered by the California Department of Health Care Services in conjunction with private long term care insurance companies. These policies are often referred to as Partnership Policies. They fall under the oversight of the California Department of Insurance, just like traditional LTC insurance policies.
California Partnership for Long Term Care Insurance rates are like non-partnership policies. But some features of CA Partnership Policies can limit flexibility in benefit design. An example is mandatory age-related inflation protection. We recommend comparing Partnership Policies to traditional LTC insurance because a wider range of choices may be available and better suited to your situation.
California Partnership for Long Term Care Reciprocity
The State of California does not currently have reciprocity with other states LTC Partnership Policies. For those purchasing a qualified Long Term Care Partnership policy in another State, reciprocity means they will not lose their asset protection if they move to a state with reciprocity. With reciprocity, 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.
How Much Does LTC Insurance Cost in California?
How much does long term care insurance cost in California? Answer: Your long term care insurance rates depend 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 choose:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
Your long term care insurance quotes will reflect these benefit options, your age and all applicable discounts. For instance, marital and spousal discounts can be as much as 40%.
Long Term Care Insurance Companies In California
California long term care insurance and Partnership Policies are available from some great insurance carriers. These companies must meet criteria mandated by the California Department of Insurance. And each company has a sweet spot based on age related pricing and health underwriting.
Besides traditional long term care insurance, we offer Partnership Policies and hybrid long term care insurance plans. Our licensed professionals maintain long term care specific training and education requirements. Here is a list of long term care insurance companies offering coverage in California:
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