Maine Long Term Care Insurance Partnership Program Review
Long Term Care Insurance in Maine
Planning ahead for future long term care needs makes financial sense. Many people have had experience with a loved one who needed long term care. These experiences highlight the reality of the emotional and financial stress when someone needs long term care.
Long term care insurance protects your assets. Plus it gives you peace of mind, knowing you can handle long term care costs if you need it in the future. A long term care plan also protects your family from needing to be caregivers. And it gives you the choice of where you’ll receive any care that may be needed.
Who Needs Long Term Care Insurance
Those turning age 65 today have about a 70 percent chance of needing some type of long term care during their lifetime. One-third may never need long term care, but 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 Maine, the average cost for 3 years of long term care is $405,150 ($135,050 per year) at 2021 rates. That cost is projected to be $731,745 ($243,915 per year) in 2041.2
It’s also important to note that 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. Unfortunately Medicare does not pay for most long term care services. Specifically, Medicare does not pay for custodial care which comprises over 90% of all long term care services.
One example of custodial care is when someone needs help with walking, bathing, eating, dressing or using the toilet. This what people need most when they have a physical impairment from a stroke. Another example is due to cognitive impairment from dementia or Alzheimer’s disease. Don’t make the costly mistake of thinking Medicare covers long term care costs. It doesn’t.
When To Buy Long Term Care Insurance
Like most advisers, we recommend acquiring long term care insurance in your fifties or early sixties. Here’s why:
- The younger you are when you buy a policy, the lower the 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 hard to get coverage at all.
- Even though you’ll pay premiums over a longer period of time, you’ll typically pay less overall than someone buying insurance 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
There are two types of insurance that cover long term care expenses. Each type has its advantages and one of our licensed professionals can give you more detail 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 LTC insurance policies make up about fifty percent of long term care policies purchased today.
Hybrid Long Term Care Insurance
A hybrid long term care insurance policy combines the benefits of life insurance, or an annuity, with long term care benefits. You purchase 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, the policy works much like a traditional life insurance policy. 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 long term care annuity value, often several times over, providing tremendous leverage of your premium dollars.
Long Term Care Costs In Maine
This Maine long term care cost summary can help you decide how much LTC insurance you need. And it compares nursing facility, assisted living and home care costs. Here is the 2021 cost of long term care for the State of Maine.2
Maine Long Term Care Costs – 2021 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living (private room)||Home Health Aide (44 hours/wk)|
|Maine State Median||$135,050||$125,925||$70,380||$68,640|
Maine Long Term Care Partnership Program
The Maine Long Term Care Partnership Program is a Maine program that combines private long term care insurance with special access to Medicaid (MaineCare). The Maine Long Term Care Partnership Program helps you prepare for the possibility of needing nursing home care, assisted living care or home care.
A Maine Long Term Care Partnership Program (Partnership) policy would allow you to keep all, or part of your assets under Maine’s Medicaid (MaineCare) program, if your long term care needs last longer than the benefits of your Partnership policy.
Partnership rates are like other policies. But the mandatory age-related inflation protection can increase the cost of insurance. So we recommend you compare Maine Long Term Care Partnership Program policies with regular LTC insurance. You may other options that suit your needs better. This includes hybrid long term care insurance options not available with the Maine Long Term Care Partnership Program.
Maine Long Term Care Partnership Reciprocity
Consider when someone buys a Long Term Care Partnership policy in another State and then later moves to Maine. Reciprocity means they would not lose the special asset protection when they move to Maine. The State of Maine would also recognize accumulated asset protection for Medicaid (MaineCare) qualification, if the person were already receiving long term care benefits from their Partnership policy before relocating.
Cost of Long Term Care Insurance in Maine
Your long term care insurance premiums in Maine will depend on your age and health history at the time you buy the insurance. Generally, the younger and healthier you are the lower the cost. Long term care insurance premiums also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (optional)
Long Term Care Insurance Companies in Maine
Maine 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 is a list of long term care insurance companies in Maine:
Compare Long Term Care Insurance Costs and Options
Our 30 years of LTC planning experience will save you time and money!
One Stop Shopping
Compare Maine’s Long Term Care Insurance Companies, Quotes and Policy Costs. We’ll help you compare the companies and plan options side by side. We also provide detailed comparisons to the AARP LTC insurance offering.
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We aggressively shop the market of top-rated insurance companies and help you find not only the best rate, but the best company. We’ll supply you with rates, ratings, and reviews of the companies that sell these types of policies.
1. 2022 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 03/02/2022
2. Cost of Care Survey 2021 (Genworth.com), site accessed 03/02/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 03/02/2022