New York State Partnership for Long Term Care Insurance Review
New York State Long Term Care Insurance
This New York State Long Term Care Insurance Review covers long term care planning in New York. Here are the key points in this article:
- Who needs long term care?
- When to buy long term care insurance?
- Long term care insurance options.
- New York State long term care costs.
- New York State Partnership for Long Term Care.
- How much does long term care insurance cost in New York?
- Long term care insurance companies in New York.
Click Here To Get New York State Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in New York State.
New York State Long Term Care Planning
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. These experiences underscore the reality of the financial and emotional stress when someone 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.
Who Needs 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 York State, the average cost for 3 years of long term care is $465,375 ($155,125 per year) at 2020 rates. That cost is projected to be $840,519 ($280,173 per year) in 2040.2
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. And 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.
Long Term Care Insurance Options in New York State
There are two types of insurance in New York State 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 long term care 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, a life insurance with a long term care rider policy works much like traditional life insurance. 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.
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 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.
New York State Long Term Care Costs
Genworth Long Term Care conducts a national study on the cost of long term care services. Their 2020 Cost of Care Survey included over 15,000 long term care providers in more than 441 regions. It examines New York State long term care costs by region and provides the option to adjust long term care costs for inflation based on past indicators.
New York State long term care costs are important to factor into your long term care planning. Because, the cost of long term care is a prime indicator in choosing how much long term care insurance you need. Here is the average cost of long term care in New York State:
New York State Long Term Care Costs – 2020 (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 York State Median | $155,125 | $147,825 | $57,600 | $59,488 |
| Albany Area | $162,608 | $155,673 | $57,600 | $62,348 |
| Binghamton | $140,832 | $138,510 | $61,158 | $59,213 |
| Buffalo Area | $158,775 | $152,030 | $54,780 | $59,488 |
| Elmira | $148,738 | $141,438 | $67,488 | $58,069 |
| Glens Falls | $173,375 | $168,813 | $50,820 | $62,920 |
| Ithaca | $124,429 | $118,954 | $162,000 | $67,496 |
| Kingston | $179,580 | $177,558 | n/a | $52,624 |
| New York City Area | $155,125 | $141,255 | $71,886 | $59,488 |
| Rochester | $161,695 | $148,555 | $62,157 | $62,920 |
| Syracuse | $161,250 | $154,676 | $56,430 | $64,064 |
| Utica Area | $120,450 | $114,975 | $58,860 | $59,488 |
| Watertown Area | $146,000 | $139,065 | $72,402 | $59,213 |
New York State Partnership for Long Term Care Insurance
The New York State Partnership for Long Term Care (NYSPLTC) is a special Department of Health program combining private long term care insurance with Medicaid Extended Coverage (MEC). The NYSPLTC helps New Yorkers prepare for the possibility of needing nursing home care, assisted living care or home care.
The New York State Partnership for Long Term Care allows those with a Partnership Policy to keep all or part of their assets under the Medicaid program, if their long term care needs last longer than the benefits of their insurance policy.
The Long Term Care Insurance NY Partnership requires LTC insurance companies offering Partnership LTC policies to offer specific benefits. This rule can help simplify choosing your long term care insurance coverage.
Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships.
New York Long Term Care Insurance Rates
A Long Term Care Insurance New York State Partnership policy will have premiums like Non-Partnership policies, when designed with similar benefits. But the required benefits of a New York State Partnership for Long Term Care policy may limit flexibility in benefit design. So, considering Non-Partnership LTC policies may provide a wider range of benefit options. This wider range of options may provide more affordable long term care insurance. One of our long term care insurance agent can illustrate these options for you.
New York State Partnership Reciprocity
Reciprocity allows you to buy a qualifying Partnership LTC policy in another state and keep the unique asset protection features if you move to New York. The State of New York will also recognize accumulated asset protection for Medicaid qualification if you’re already receiving benefits under your Partnership long term care policy before moving to New York.
How Much Does LTC Insurance Cost In New York?
How much does long term care insurance cost in New York? 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. Your LTC insurance rate will also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
Click Here To Get New York Long Term Care Insurance Quotes
Long Term Care Insurance Companies in New York State
New York State 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. These are the best long term care insurance companies in New York State:
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Compare NY Long Term Care Insurance Costs and Options
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1. 2020 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 01/14/2021
2. Cost of Care Survey 2020 (Genworth.com), site accessed 01/14/2021
3. Family Caregiver Alliance (www.caregiver.org), site accessed 01/14/2021