Louisiana Long Term Care Insurance Costs, Companies and Quotes
Louisiana Long Term Care Insurance Review
This Louisiana Long Term Care Insurance Review covers long term care planning in the state of Louisiana. Here are the primary points discussed in this article:
- The risk of needing long term care
- The cost of long term care in Louisiana
- Types of long term care insurance
- What’s the best age to buy long term care insurance
- The Louisiana Long Term Care Partnership
- How much does long term care insurance cost in Louisiana
- Long term care insurance companies in Louisiana
- Comparing Louisiana long term care insurance quotes
Click To Get Louisiana Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Louisiana.
Louisiana Long Term Care Planning
Long term care services include nursing homes, assisted living facilities and home health care. The high cost of Louisiana long term care services is one of the greatest risks to Louisianans savings and a secure retirement. 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.
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 Louisiana, the average cost for 3 years of long term care is $199,509 ($66,503 per year) at 2018 rates. That cost is projected to be $360,336 ($120,112 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 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. Don’t make the mistake of thinking Medicare covers long term care costs. It doesn’t.
Types of Long Term Care Insurance in Louisiana
There are two types of insurance in Louisiana 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.
Best Age To Buy Louisiana Long Term Care Insurance
Like most advisers, we recommend buying Louisiana long term health 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.
Louisiana Long Term Care Costs
Louisianians need to know long term care costs when planning for future long term care needs. Because Louisiana’s current cost of care and future cost projections, tell you how much long term care protection you need.
A comprehensive study on the cost of long term care services is by the Fortune 500 company, Genworth Financial. The Genworth Financial 2018 Cost of Care Survey includes long term care costs of more than 15,000 long term care providers nationwide.
Here is the current cost of long term care in Louisiana:
Louisiana 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)|
|Louisiana State Median||$66,503||$62,780||$42,600||$36,608|
|New Orleans Area||$71,175||$67,525||$43,320||$36,608|
|Rest of Louisiana||$61,951||$57,305||$38,988||$32,032|
Louisiana Long Term Care Partnership Program
The Louisiana Long Term Care Partnership Program is a three way program. It’s a collaboration between The State of Louisiana, long term care insurance companies and the federal Medicaid Program. Long term care insurance policies sold under the Louisiana Long-Term Care Insurance Partnership have become known as Partnership Policies.
The Louisiana Long-Term Care Partnership encourages people to plan ahead for their future long term care needs. These Partnership long term care insurance policies must meet certain federal and state requirements. Partnership LTCi coverage includes extra protection when compared to regular long term care insurance. Partnership policies allow individuals to protect assets from Louisiana’s Medicaid spend-down requirements if help under Medicaid is ever needed.
The Louisiana Long-Term Care Insurance Partnership Program requires companies offer specific policy benefits. This rule can help you choose the level of benefits to included in your long term care insurance policy.
Louisiana Long Term Care Partnership Rates
Louisiana Long Term Care Insurance Partnership premiums are like other LTC insurance policies. But at some ages there is mandatory inflation protection which can increase the cost of insurance. This mandatory feature of the Louisiana LTCi Partnership Program may limit your options. Consequently we recommend buyers compare Louisiana LTC Partnership insurance with non-Partnership policies. Working with our long term care insurance professionals is the best way to compare the differences.
Louisiana Long Term Care Partnership Reciprocity
Many states with LTC Partnership Insurance plans have reciprocity with other states. Reciprocity affects those who buy a Long Term Care Partnership policy in another State and later move to Louisiana.
If Louisiana had Reciprocity, the insured would keep the special asset protection when moving to Louisiana. To date, The State of Louisiana is still working to establish reciprocity with other states.
How Much Does LTC Insurance Cost In Louisiana?
How much does long term care insurance costs in Louisiana? The answer: Long term care insurance premiums depend upon your age and health conditions when you buy the insurance. In general, the younger and healthier you are the lower the premiums. Your LTC 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)
Click to request Louisiana long term care insurance quotes and comparisons specific to your situation.
Long Term Care Insurance Companies In Louisiana
Louisiana 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 Louisiana:
Compare Louisiana LTC Insurance Costs and Options
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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