Long-Term Care Insurance Colorado Partnership Cost & Companies
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.
CLICK HERE For Colorado Long-Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Colorado.
Who Needs Long-Term Care Insurance
Someone turning age 65 today has about a 70 percent chance of needing some type of long term care during their lifetime. While one-third may never need long term care, 20 percent will need it for longer than 5 years. The average length of time people need long term care services is 3 years.1
In Colorado, the average cost for 3 years of long term care is $350,127 ($116,709 per year) at 2021 rates. That cost is projected to be $632,367 ($210,789 per year) in 2041.2
And it’s not only seniors that need long term care. Over 35 percent of people currently receiving long term care services are between 18 and 64.3
Does Medicare Cover 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 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. Don’t make the mistake of thinking Medicare covers long term care costs. It doesn’t.
When 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 Insurance Options in Colorado
There are two insurance options in Colorado that pay for long term care costs. And each type of policy has its specific advantages. One of our licensed professionals can provide more details to help you decide which is best for you.
Traditional Long-Term Care Insurance
You pay an annual premium, and if you need long term care due to a cognitive or physical impairment, the policy pays for your care. Traditional Long-Term Care Insurance policies make up about half of all long term care policies sold.
Hybrid Long-Term Care Insurance
Hybrid long term care policies combine the benefits of life insurance, or an annuity, with long term care benefits. You can buy a Hybrid Long-Term Care Insurance policy by paying a one-time lump sum premium, or over a set period of time.
If long term care is never needed, asset based long term care policy works much like traditional life insurance. It would then pay a death benefit to your beneficiary when you die. And the death benefit is often similar to the amount paid for the policy. But if you need long-term care, the amount of money available can exceed the death benefit or annuity value, often several times over, offering tremendous leverage of premium dollars.
Long Term Care Costs in Colorado
Colorado long-term care costs are important to know because they are a primary indicator to how much long term care protection you need. The Genworth Financial 2021 Cost of Care Survey includes over 15,000 long term care providers across the country. Here is the current cost of long term care in Colorado:
Colorado Long Term Care Costs – 2021 (annual) |
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| Region | Nursing Home (private room) | Nursing Home (semi-private room) | Assisted Living (private room) | Home Health Aide (44 hours/wk) |
| Colorado Median | $116,709 | $102,810 | $57,000 | $76,648 |
| Boulder | $140,467 | $146,000 | $75,300 | $81,224 |
| Colorado Springs | $112,968 | $104,025 | $55,950 | $69,212 |
| Denver Area | $120,633 | $104,025 | $66,000 | $82,368 |
| Fort Collins | $117,421 | $108,953 | $48,000 | $73,216 |
| Grand Junction | $123,392 | $101,470 | $50,994 | $65,208 |
| Greeley | $131,400 | $115,888 | $52,800 | $67,496 |
| Pueblo | $111,132 | $95,995 | $45,600 | $62,920 |
Colorado Long-Term Care Partnership
The Colorado Long-Term Care Partnership joins private Long-Term Care Insurance with special access to Medicaid. The Colorado Long-Term Care Partnership helps Coloradans prepare for the possibility of needing nursing home care, assisted living care or home care.
A Colorado Long-Term Care Partnership (LTCP) policy allows you to keep all, or part of your assets under the Medicaid program, if your long term care needs last longer than the benefits of your Partnership policy.
Hybrid Long-Term Care Insurance options are not available under the Colorado Long-Term Care Partnership. Your LTC Specialist will explain the differences to help you decide which is best for your situation.
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 getting benefits under your Partnership long-term care policy before moving to Colorado.
How Much Does LTC Insurance Cost In Colorado?
How much does Long-Term Care Insurance cost in Colorado? Your Long-Term Care Insurance rates will 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 will also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
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Long-Term Care Insurance Companies In Colorado
Colorado Long-Term Care Insurance is available from several well respected insurance companies. We compare these companies to find you the best protection at the lowest cost. Here’s a list of the best Long-Term Care Insurance companies in Colorado:
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1. 2022 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 10/29/2022
2. Cost of Care Survey 2021 (Genworth.com), site accessed 10/29/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 10/29/2022