Long Term Care Insurance New Mexico Partnership Costs and Companies
Long Term Care Insurance New Mexico Partnership
The Long Term Care Insurance New Mexico Partnership combines private long term care insurance coverage with special access to Medicaid. The New Mexico LTC Partnership Program allows residents to shield a part or all their wealth and still qualify for Medicaid, should their long term care needs extend beyond what is payable by their private long term care insurance policy.
New Mexico Long Term Care Insurance Partnership companies must offer specific benefits. These LTC insurance companies work in conjunction with the Long Term Care Insurance New Mexico Partnership program. Insurance policies offered under the Partnership program are known as “Partnership policies”. It is Section 6021 of the 2005 Deficit Reduction Act that allows for Qualified State Long Term Care Partnerships.
Click To Get New Mexico Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in New Mexico.
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 New Mexico, the average cost for 3 years of long term care is $274,299 ($91,433 per year) at 2018 rates. That cost is projected to be $495,414 ($165,138 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.
Types of Long Term Care Insurance in New Mexico
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 LTC 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 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. The Genworth Financial 2018 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 to include in your retirement plan. John Hancock Life Insurance Company also surveys New Mexico long term care costs. Their Cost of Care Calculator provides an estimate of future long term care costs, adjusted for inflation.
New Mexico Long Term Care Costs – 2018 (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) |
| New Mexico Median Cost | $91,433 | $87,418 | $51,000 | $45,760 |
| Albuquerque | $107,398 | $91,312 | $61,200 | $51,434 |
| Farmington | $84,764 | $78,194 | $43,200 | $43,472 |
| Las Cruces | $112,420 | $90,265 | $47,025 | $45,760 |
| Santa Fe | $91,615 | $90,703 | $61,200 | $57,200 |
| Rest of New Mexico | $86,505 | $78,658 | $43,605 | $41,184 |
How Much Does Long Term Care Insurance Cost?
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 (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 New Mexico Partnership Rates
Long Term Care Insurance New Mexico Partnership policy rates are like standard LTC policies when designed with similar benefits. But the required features of Long Term Care Partnership policies may limit flexibility in benefits. Thus we suggest also considering non-Partnership long term care insurance. Because, a wider range of choices may be better suited to a particular situation. An agent specializing in long term care insurance can explain these differences to you.
Long Term Care Insurance New Mexico 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.
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 offering coverage in New Mexico:
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Get New Mexico Long Term Care Insurance Quotes!
We’ve specialized in Long Term Care planning solutions since 1990 and give you professional, unbiased advice to help you decide if Long Term Care Insurance is right for you. We shop all the major long term care insurance New Mexico providers and give you:
- Price comparisons customized for your specific needs from respected companies like Genworth Financial, John Hancock, Transamerica, Mutual of Omaha and others. We also provide detailed comparisons to the AARP LTC insurance offering.
- Benefit comparisons of each company’s policy. This side-by-side comparison will cover both the similarities and differences of each plan.
- Financial stability reviews of each long term care insurance company’s financial ratings, size and claims paying experience.
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