Long Term Care Insurance Massachusetts Costs and Companies
Massachusetts 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.
The Risk Of Needing 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 services during their lifetime. But, the need for long term care does not only impact seniors. Forty percent of the people currently receiving long term care services are ages 18 to 64.
The current average cost of long term care in Massachusetts is $153,300 for a private room in a nursing home. This is among the highest cost in the nation. Even a Home Health Aide for 44 hours per week will cost $62,005 a year. These long term care costs would be devastating for most Massachusetts residents. Because of these high costs, long term care insurance can be a wise addition to a retirement plan.
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.
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.
Massachusetts Long Term Care Costs
One of the most comprehensive studies on the cost of long term care is from Genworth Financial, a Fortune 500 company. The Genworth Financial 2018 Cost of Care Survey covers national long term care costs and surveyed over 15,000 long term care providers.
Massachusetts long term care costs are important for Massachusetts residents to consider. These local and regional long term care costs indicates how much long term care protection to buy. Another Massachusetts cost of care survey is from John Hancock Life Insurance Company. The John Hancock Cost of Care Calculator includes a helpful long term care cost estimator to adjust for inflation.
Massachusetts 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||$151,475||$143,810||$77,400||$59,488|
Long Term Care Insurance Massachusetts
Many states have Long Term Care Partnership Programs. These programs combine private long term care insurance coverage with special access to Medicaid. Long Term Care Partnership Programs allow LTCi Partnership policy holders the ability to shield a portion, or all of their assets, while still being able to qualify for Medicaid. This special Medicaid qualification would be in case their long term care needs extend beyond the amount payable by their private long term care insurance policy.
Massachusetts Long Term Care Partnership Program
Currently there is no Massachusetts long term care partnership program. Although there is no Massachusetts long term care insurance partnership, there are Long-Term Care MassHealth Exemptions.
Long-Term Care MassHealth Exemptions
If you have MassHealth and long term-care insurance, you may be exempt from some MassHealth eligibility and recovery rules. These exemption rules determine if you will have to sell your home to become eligible for MassHealth benefits. They also determine whether you or your estate will have to pay back MassHealth for the long term care costs it paid for your care.
To qualify for the MassHealth Exemptions, your long term care insurance policy must provide certain benefits. For example, when you enter a nursing home, your policy must:
- Cover at least 730 days of nursing home care;
- Pay no less than $125 a day for nursing home care; and
- Have an elimination period shorter than 365 days.
To qualify for these MassHealth exemptions, a Massachusetts long term care insurance policy must also meet certain standards set by the Division of Insurance. For information on Massachusetts long term care insurance regulations see 211 CMR 65.05. Our Massachusetts long term care insurance agents can further explain the details of these rules.
How Much Does LTC Insurance Cost In Massachusetts?
How much does long term care insurance cost in Massachusetts? The answer: It depends on your age and health history at the time you buy insurance. In general, the younger and healthier you are the lower the premium. The cost will also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period
- Inflation Protection (if chosen)
Complete the form on this page to request long term care insurance costs and comparisons specific to your situation.
Shopping For Long Term Care Insurance In Massachusetts
You can buy Massachusetts long term care insurance from several insurance companies. Insurance agents selling these policies must attend a special training course required by The State of Massachusetts. Here is a list of long term care insurance companies offering coverage in the State of Massachusetts:
Get Massachusetts LTC Insurance Quotes!
We’ve specialized in Long Term Care planning since 1990 and will give you professional, unbiased advice so you can decide if Long Term Care Insurance is right for you. We shop the best long term care insurance companies in Massachusetts and give you:
- Price comparisons customized for your specific needs from respected insurance companies like Mutual of Omaha, National Guardian Life, Transamerica and others.
- Benefit comparisons of each insurance company’s policy. This side-by-side comparison covers both the similarities and differences of each LTC insurance policy. And we’ll show you comparison to group coverage options such as AARP and group plans available through your employer.
- Financial stability reviews of each long term care insurance company’s ratings, assets and claims paying experience.