Long Term Care Insurance Pennsylvania Partnership Review
Pennsylvania 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 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 it 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.
Click To Get Pennsylvania Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Pennsylvania.
Who Needs Long Term Care?
The U.S. Department of Health and Human Services reports that about 70 percent of people over age 65 will require some type of long-term care services during their lifetime. However, the need for long term care does not only impact seniors as 40 percent of people currently receiving long term care services are ages 18 to 64.
Consider the U.S. Census Bureau’s projections that the elderly population will more than double between now and the year 2050, to 80 million. By that year, as many as 1 in 5 Americans could be elderly with most of this growth occurring between 2010 and 2030. These numbers are sure to put a lot of stress on the long term care system in the United States.
Does Medicare Cover Long Term Care?
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 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 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. Don’t make the mistake of thinking Medicare covers long term care costs. It doesn’t.
Types of Long Term Care Insurance in Pennsylvania
There are two types of insurance in Pennsylvania 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.
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.
Pennsylvania Long Term Care Costs
The latest and most comprehensive study on national long term care costs is conducted annually by Genworth Financial, a Fortune 500 company. The Genworth Financial 2018 Cost of Care Survey encompasses long term care costs nationally and surveyed over 15,000 long term care providers in 440 regions. These numbers are important for Pennsylvania residents to consider. Because, the local cost of long term care is a primary factor when deciding how much LTCi protection to include in your retirement plan. The calculator includes an estimator for future long term care costs that have been adjusted for inflation.
Pennsylvania 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) |
| Pennsylvania Median | $121,363 | $115,340 | $45,000 | $51,777 |
| Allentown Area | $163,338 | $135,050 | $45,000 | $50,336 |
| Altoona | $118,625 | $111,690 | $45,180 | $45,760 |
| Bloomsburg Area | $99,645 | $97,820 | $43,200 | $43,655 |
| Chambersburg Area | $132,495 | $125,925 | $54,601 | $49,764 |
| East Stroudsburg | $117,713 | $111,325 | $41,550 | $56,880 |
| Erie | $116,618 | $103,660 | $55,050 | $51,480 |
| Gettysburg | $131,765 | $123,370 | $37,200 | $52,052 |
| Harrisburg Area | $127,385 | $118,260 | $53,010 | $50,336 |
| Johnstown | $101,835 | $97,455 | $36,427 | $45,760 |
| Lancaster | $132,130 | $125,378 | $52,200 | $52,624 |
| Lebanon | $125,013 | $116,435 | $52,290 | $53,768 |
| Philadelphia Area | $146,000 | $124,465 | $63,810 | $54,912 |
| Pittsburgh | $112,785 | $104,390 | $37,800 | $53,768 |
| Reading | $150,015 | $134,503 | $40,800 | $52,349 |
| Scranton Area | $111,325 | $115,158 | $28,800 | $48,048 |
| State College | $123,370 | $111,143 | $45,810 | $53,768 |
| Williamsport | $139,065 | $115,705 | $38,700 | $54,912 |
| York Area | $139,065 | $125,925 | $49,740 | $52,624 |
| Rest of State | $93,988 | $86,870 | $31,300 | $42,328 |
Pennsylvania Long Term Care Insurance Partnership
The Long Term Care Insurance Pennsylvania Partnership program combines private long term care insurance protection with special access to Medicaid. The Pennsylvania Long Term Care Insurance Partnership Program allows residents the ability to shield a portion or all of their wealth (assets) and still be able to qualify for Medicaid if their long term care needs extend beyond what is payable by their private long term care insurance policy.
The private long term care insurance providers in Pennsylvania are mandated by the Pennsylvania Long Term Care Partnership to offer specific benefits. These mandated benefits can help take the guesswork out of choosing your long term care insurance protection. Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships. In 2007, a law was passed (Act 40) that established the creation of long-term care partnership policies in Pennsylvania. The private long term care insurance Pennsylvania companies in conjunction with the Pennsylvania Long Term Care Partnership program provide long term care policies that are commonly referred to as “Partnership policies”.
PA Long Term Care Partnership Rates
A Long Term Care Insurance Pennsylvania Partnership policy costs about the same as other policies when designed with similar benefits. Some mandatory features of a Pennsylvania Long Term Care Partnership policy may limit flexibility in benefit design. For this reason, consumers may benefit by comparing to non-Partnership long term care insurance coverage. A wider range of coverage options may be more suitable to your situation. An agent specializing in long term care insurance can explain these options to you.
Long Term Care Insurance Reciprocity
Should a consumer acquire a qualifying long term care insurance partnership policy in another State under their Long Term Care Partnership program, they will not lose their asset protection if they move to Pennsylvania. The State of Pennsylvania will also recognize accumulated asset protection for Medicaid qualification if the policy holder is already receiving benefits under their Partnership long term care policy before having moved to Pennsylvania. Here is a good resource on long term care partnership program reciprocity in Pennsylvania and other states.
How Much Does LTC Insurance Cost In Pennsylvania?
How much does long term care insurance cost in Pennsylvania? Answer: The cost depends on your age and health history at the time you buy the insurance. In general, the younger and healthier you are the lower the premium. And your long term care insurance rates also depend on the following benefits selected:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
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Long Term Care Insurance Companies In Pennsylvania
Pennsylvania 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 Pennsylvania:
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