Texas Long Term Care Insurance Partnership, Cost and Companies
Long Term Care Insurance in Texas
Planning ahead for future long term care needs is key for a secure retirement. Many people have had first-hand experience with a loved one who needed long term healthcare services. These experiences emphasize 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 HERE For Texas Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance companies in Texas.
Probability of Needing 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 2022, the average cost for 3 years of long term care in Texas is $255,321 ($85,107 per year). That cost is projected to be $461,139 ($153,713 per year) in 2042.2
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 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 over 90% of long term care.
An example of custodial care is when someone needs help with walking, bathing, eating, dressing and 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.
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.
Long Term Care Insurance Options
There are two types of long term care insurance in Texas. And each type of policy has its specific advantages. One of our licensed professionals can provide more detail 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. Included in this category are Texas Long-Term Care Insurance Partnership policies. Overall, 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.
Texas Long-Term Care Insurance Partnership Program
Texas Long-Term Care Insurance Partnership policies are available. A Texas LTC Partnership policy combines private Long Term Care Insurance with Medicaid asset protection. Only Partnership policies provide this type of asset protection when you need Nursing Home, Assisted Living or Home Care.
The unique asset protection of the Texas Long-Term Care Insurance Partnership Program applies if your long term care needs last longer than the benefits of your Partnership policy.
For every dollar your Partnership policy pays in benefits, a dollar of assets is protected from the long term care Medicaid asset limit. The protected assets are also exempt from Estate Recovery in the same amount as the benefits paid by your Texas LTC Partnership policy.
Texas Long Term Care Insurance Partnership Program rates are like regular policies. Still, we recommend comparing them with non-Partnership policies because you may find other options better suited to your needs. This includes Hybrid Long Term Care Insurance plans not available under the Texas Long-Term Care Insurance Partnership Program.
Texas Long-Term Care Partnership Reciprocity
The Texas LTC Partnership does participate in the national reciprocity agreement. Reciprocity allows you to buy a qualifying Long-Term Care Insurance Partnership policy in another state and maintain the special asset protection benefit if you move to Texas. The State of Texas will also recognize accumulated asset protection for Medicaid qualification if you’re already receiving benefits from your LTC Insurance Partnership policy before moving to Texas. The majority of states have Reciprocity, but not all.
Texas Long Term Care Costs
These 2022 Texas long term care costs can help you decide how much LTC insurance you need. This table compares Home Care, Assisted Living and Nursing Home costs across Texas.
Texas Long Term Care Costs – 2022 (annual) |
||||
| Region | Nursing Home (private room) |
Nursing Home (semi-private) |
Assisted Living (private room) |
Home Health Aide (44 Hrs/wk) |
| Texas State Median |
$85,107 | $61,503 | $47,970 | $54,912 |
| Abilene | $74,825 | $56,028 | $41,385 | $54,340 |
| Amarillo | $76,103 | $61,685 | $55,200 | $48,620 |
| Austin Area | $107,675 | $71,175 | $64,140 | $62,348 |
| Beaumont Area | $88,440 | $63,875 | $52,464 | $52,624 |
| Brownsville Area | $97,455 | $69,350 | $48,000 | $34,320 |
| College Station Area | $66,430 | $56,575 | $47,979 | $54,866 |
| Corpus Christi | $126,655 | $63,875 | $40,659 | $43,472 |
| Dallas Area | $101,525 | $67,525 | $50,340 | $58,344 |
| El Paso | $87,874 | $58,583 | $45,000 | $43,472 |
| Houston Area | $93,075 | $63,145 | $50,940 | $54,912 |
| Killeen Area | $90,338 | $62,963 | $50,598 | $53,722 |
| Laredo | $77,106 | $61,138 | N/A | $36,585 |
| Longview | $66,065 | $50,188 | $51,300 | $45,760 |
| Lubbock | $86,870 | $65,700 | $47,400 | $54,912 |
| McAllen Area | $112,420 | $73,548 | $58,200 | $34,320 |
| Midland | $122,914 | $72,453 | $57,468 | $56,056 |
| Odessa | $104,025 | $62,050 | $52,770 | n/a |
| San Angelo | $80,300 | $57,853 | $36,000 | $54,340 |
| San Antonio Area | $83,220 | $62,780 | $40,950 | $54,912 |
| Sherman Area | $91,250 | $62,050 | $42,000 | $57,200 |
| Texarkana | $59,860 | $58,035 | $33,240 | $44,570 |
| Tyler | $67,343 | $53,838 | $46,350 | $52,510 |
| Victoria | $83,950 | $62,050 | $67,200 | $52,052 |
| Waco | $71,175 | $55,480 | $33,600 | $56,010 |
| Wichita Falls | $68,255 | $56,575 | $42,060 | $44,341 |
Average Cost of Texas LTC Insurance
What’s the average cost of long term care insurance in Texas? The cost will depend on your age and health history at the time you buy the insurance. Typically, the younger and healthier you are the lower the cost. So the average cost depends not only on your age, but also your health history. And the average cost of long term care insurance in Texas also depends on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (optional)
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Long Term Care Companies In Texas
Texas long term care insurance is available from several well respected companies. We compare the long term care companies in Texas to find you the best protection at the lowest cost. Here’s a list of the long term care insurance companies in Texas:
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1. 2022 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 11/08/2022
2. Cost of Care Survey 2021 (Genworth.com), site accessed 11/08/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 11/08/2022