New Mexico Long Term Care Partnership Costs and Companies
New Mexico Long Term Care Planning
Planning ahead for future long term care needs is key to protecting your retirement assets. Many have had a first-hand experience with a loved one who needed long term care. These personal experiences stress the reality of the financial and emotional stress when someone needs long term care.
Long term care insurance also 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. Plus it enables you to choose where you’ll receive any care needed in later years.
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 New Mexico, the average cost for 3 years of long term care is $301,125 ($100,375 per year) at 2021 rates. That cost is projected to be $543,864 ($181,288 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 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.
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 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.
New Mexico Long Term Care Insurance Options
There are two types of insurance in New Mexico 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 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.
Long Term Care Costs In New Mexico
A comprehensive study on long term care costs is from the Fortune 500 Company, Genworth Financial. Their 2021 Cost of Care Survey analyzed the national cost of long term care and included over 15,000 long term care providers.
New Mexico long term care costs are important for New Mexicans to know. Because, the local cost of long term care is a primary factor when deciding how much long term care protection you need. Here is the cost of long term care in New Mexico.
New Mexico 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)|
|New Mexico Median Cost||$100,375||$91,250||$53,970||$55,827|
New Mexico Long Term Care Partnership Program
The New Mexico Long Term Care Partnership Program joins private long term care insurance with special access to Medicaid. The purpose of the New Mexico Long Term Care Partnership is to help New Mexicans prepare for the possibility of needing nursing home care, assisted living care or home care.
A New Mexico Long Term Care Partnership 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.
New Mexico Long Term Care Partnership Program rates are like other policies. But the mandatory age-related inflation protection can increase the cost of insurance. So we recommend you compare New Mexico Long Term Care Partnership policies with regular LTC insurance. Because, you may find a wider range of choices better suited to your needs. This includes hybrid long term care insurance options not available under the New Mexico Long Term Care Partnership Program.
Long Term Care Partnership Reciprocity
Consider the situation where someone buys a long term care insurance partnership policy in another State under their Long Term Care Partnership Program. That individual later moves to New Mexico and takes their LTC Partnership policy with them. Reciprocity means they would not lose their asset protection by moving to New Mexico. The State of New Mexico would also recognize accumulated asset protection for Medicaid qualification if they are already receiving benefits from their Partnership long term care insurance before moving to New Mexico.
How Much Does LTC Insurance Cost in New Mexico?
How much does long term care insurance cost in New Mexico? The answer: The cost will depend on your age and health history at the time you buy the insurance. Generally 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 (optional)
Long Term Care Insurance Companies In New Mexico
New Mexico 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 New Mexico:
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 New Mexico’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 offerings.
Compare With an Independent Agent
We impartially 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 02/24/2022
2. Cost of Care Survey 2022 (Genworth.com), site accessed 02/24/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 02/24/2022