Minnesota Long Term Care Insurance Partnership Cost and Companies
Minnesota Long Term Care Insurance Review
This Minnesota Long Term Care Insurance Review explains long term care planning in the State of Minnesota. Here are the key points covered in this article:
- The risk of needing long term care
- Long term care costs in Minnesota
- The two different types of long term care insurance
- What’s the best age to buy long term care insurance
- The Minnesota Long Term Care Partnership Program
- How much does long term care insurance cost in MN
- The best long term care insurance companies in Minnesota
- Minnesota long term care insurance quotes and comparisons
Click To Get Minnesota Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Minnesota.
Long Term Care Planning in Minnesota
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.
Long term care insurance 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. A long term care plan 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.
What is The Risk of Needing of Long Term Care?
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 Minnesota, the average cost for 3 years of long term care is $366,780 ($122,260 per year) at 2018 rates. That cost is projected to be $662,445 ($220,815 per year) in 2038.2.
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 Pay for Long Term Care?
Medicare is the federal health insurance program for those over 65 and some younger people with disabilities. 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 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.
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.
Types of Long Term Care Insurance in Minnesota
There are two types of insurance in Minnesota that pay for long term care costs. And each type of policy has its specific advantages. One of our licensed professionals can provide comparisons 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 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, 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, offering tremendous leverage of premium dollars.
Cost of Long Term Care in Minnesota
One of the best studies on the cost of long term care is conducted by the Fortune 500 company, Genworth Financial. Their 2018 Cost of Care study surveyed national long term care costs of more than 15,000 long term care providers across 440 regions.
Regional long term care costs are important for Minnesotans to consider. Because, your regional and local cost of long term care services are key when deciding how much long term care coverage you need.
Here is the current cost of long term care in Minnesota:
Minnesota 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||$118,322||$106,792||$46,572||$59,488|
Minnesota Long Term Care Partnership Program
The Minnesota Long Term Care Partnership is a public/private arrangement between private long term care providers and the MN Medical Assistance program. This arrangement combines private long term care insurance with special access to Medical Assistance. The Minnesota LTC Partnership can enable Minnesota residents to protect more of their assets while still being able to qualify for Medical Assistance, should their long term care needs extend beyond the amount payable by their private long term care insurance policy.
Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships. The LTC insurance policies provided under this program are commonly referred to as Partnership Policies.
Minnesota LTC Partnership Rates
Minnesota Long Term Care Partnership policies cost about the same as other policies when designed with similar benefits. But, some mandated features of a Minnesota Partnership Policy can limit flexibility in benefit design.
While this rule can help simplify choosing your long term care insurance coverage, it can also increase the cost of insurance. We we recommend also considering non-Partnership long term care insurance. A wider range of choices may be available and better suited to your situation.
Long Term Care Partnership Reciprocity
Reciprocity applies to consumers who buy a long term care Partnership Policy in another State and then later move to Minnesota. These policy holders will not lose their asset protection if they move to Minnesota. The State of Minnesota will also recognize any accumulated asset protection for Medicaid qualification if the individual is already receiving benefits under their Long Term Care Partnership policy before moving to Minnesota.
How Much Does LTC Insurance Cost In Minnesota?
How much does long term care insurance cost in Minnesota? 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 (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 Minnesota
Minnesota 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 offering coverage in Minnesota:
Compare Long Term Care Insurance Costs and Options
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1. 2019 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 06/12/2019
2. Cost of Care Survey 2018 (Genworth.com), site accessed 6/12/2019
3. Family Caregiver Alliance (www.caregiver.org), site accessed 6/12/2019