Colorado Long Term Care Insurance Partnership Program
Colorado 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.
Does Medicare Cover Long Term Care Services?
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?
The United States Department of Health and Human Services reported that approximately 70 percent of people over age 65 will require some form of long-term care services during their lifetime. And it’s not just seniors needing long term care services. Today, 40 percent of people receiving long term care services are between the ages 18 and 64.
Types of Long Term Care Protection
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. Complete the form on this page to request long term care insurance costs and comparisons specific to your situation.
What’s 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.
Long Term Care Costs Colorado
A comprehensive study on the cost of long term care conducted annually by Genworth Financial, a Fortune 500 company. The Genworth Financial 2018 Cost of Care Survey analyzes national long term care costs and surveyed more than 15,000 long term care providers. John Hancock Insurance Company has a Cost of Care Calculator and their study also surveyed Colorado long term care costs. The Cost of Care Calculator includes an estimator for future long term care costs adjusted for inflation. Because the regional cost of long term care is a primary factor when deciding the amount of term care insurance to build into retirement plan, the cost of long term care in Colorado is important to know.
Colorado Long Term Care Costs – 2018 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living (private room)||Home Health Aide (44 hours/wk)|
|Rest of State||$91,250||$83,950||$45,000||$57,200|
Long Term Care Insurance Colorado Partnership Program
The Long Term Care Insurance Colorado Partnership (LTCP) program is a special program combining private long term care insurance coverage with special access to Medicaid. The LTCP program allows Colorado residents to shield a portion or all of their wealth (assets) and still be able to qualify for Medicaid if their long term care needs extend beyond what is payable by their private long term care insurance policy.
The private long term care insurance companies in Colorado are mandated by the Colorado Long Term Care Partnership Program to offer a very specific level of benefits. This is a consumer protection feature that helps take the guesswork out of choosing long term care insurance coverage. Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships. The private long term care insurance Colorado companies in conjunction with the Colorado Long Term Care Partnership program provide long term care policies that are commonly referred to as Partnership Policies.
Colorado LTC Partnership Rates
A Long Term Care Insurance Colorado Partnership Program insurance policy is priced similar to other policies when designed with similar benefits. However, the mandated features of the Colorado Long Term Care Partnership Program policies can limit flexibility in policy design. Thus it may be smart to also compare non-Partnership long term care policies. Because, a wider range of benefits may be available and more suitable for your situation. By working with an agent who specializes in long term care insurance you can have these options illustrated for you.
Colorado Long Term Care Partnership Reciprocity
Reciprocity means that, if you purchase a qualifying long term care insurance partnership program policy in another State from its Long Term Care Partnership program, you will not lose your asset protection if you move to Colorado. The State of Colorado will also recognize accumulated asset protection for Medicaid qualification if you’re already receiving benefits under your Partnership long term care policy before you move to Colorado.
How Much Does LTC Insurance Cost In Colorado?
How much does long term care insurance cost in Colorado? 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 will also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
Complete the form on this page to request long term care insurance costs and comparisons specific to your situation.
Long Term Care Insurance Companies In Colorado
A number of long term care insurance companies offer Colorado Long Term Care Partnership Program policies. Long term care insurance agents that offer Partnership policies must maintain a special certificate of training required by the State of Colorado. Carriers that currently offer Colorado Long Term Care Partnership Program policies include:
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