Long Term Care Insurance Washington State Partnership Companies and Cost
Washington State Long Term Care Planning
Planning ahead for future long term care needs is a critical 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 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.
Does Medicare Cover Long Term Care Costs?
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 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.
Who Needs Long Term Care Services?
According to the U.S. Department of Health and Human Services, about 70 percent of people over age 65 will need some type of long-term care services during their lifetime. But, the need for long term care does not only impact seniors. Currently, 40 percent of people receiving long term care services are ages 18 to 64.
Types of Long Term Care Insurance
There are two types of protection for long term care needs:
- Traditional Long Term Care Insurance.
- Hybrid Long Term Care Insurance. This includes long term care annuities and long term care life insurance.
Each type has its specific advantages. One of our independent long term care agents can explain the differences to help you decide which is best for you.
What’s 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 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 Costs In Washington State
One of the most comprehensive studies on the cost of long term care is from Genworth Financial, a Fortune 500 company. The Genworth Financial 2018 Cost of Care Survey includes national long term care costs from over 15,000 long term care providers in 440 regions. Washington State long term care costs are important for Washington residents to consider. The local cost of long term care is a key factor in identifying how much long term care coverage to include in your financial plan. Another survey is from John Hancock Life Insurance Company. Their Cost of Care Calculator can estimate future Washington long term care costs.
Washington State Long Term Care Costs – 2018 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living (private room)||Home Health Aide (44 hours/wk)|
|Rest of Washington||$109,135||$97,090||$50,550||$64,064|
Washington State Long Term Care Partnership Review
The Long Term Care Insurance Washington State Partnership (LTCP) is a special program. It combines private long term care insurance coverage with special access to Medicaid. The LTCP program allows Washington residents to shield a part or all their assets and still 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 Washington companies are mandated by the Washington State Long Term Care Insurance Partnership to offer specific benefits. This rule can help take the guesswork out of choosing your long term care insurance coverage. Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships. The private long term care insurance Washington companies in conjunction with the Washington State Long Term Care Partnership program provide long term care policies known as “Partnership Policies”.
Long Term Care Insurance Washington State Reciprocity
What if you buy a long term care insurance partnership policy in another State, under their Long Term Care Partnership program, and then move to Washington? Reciprocity means you will not lose your asset protection if you move to Washington. The State of Washington will also recognize accumulated asset protection for Medicaid qualification if you’re already receiving benefits under your Partnership long term care policy before moving. Here is a good resource on long term care partnership programs in Washington and other states.
How Much Does Long Term Care Insurance Cost?
How much does long term care insurance cost in Washington State? The answer: It depends on your age and health history at the time you buy the insurance. Practically 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
- Inflation Protection (if chosen)
Complete the form on this page to request long term care insurance costs and comparisons specific to your situation.
Washington State Long Term Care Insurance Rates
A Long Term Care Insurance Washington State Partnership policy costs about the same as other policies when designed with similar benefits. Some required features of Washington Long Term Care Partnership insurance can limit flexibility in benefit design. Thus, it’s a good idea to compare non-Partnership long term care insurance as a wider range of choices may be more suitable for a particular situation. An agent specializing in long term care insurance can explain these differences to you.
Purchasing Long Term Care Insurance In Washington
Washington State Long Term Care Insurance Partnership policies are available from several LTC insurance companies. Agents selling Partnership Policies must have special training as required by the State of Washington. Some of the carriers offering long term care insurance policies in Washington State include:
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