Mississippi Long Term Care Insurance Review, Costs and Companies
Mississippi 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 Services?
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.
The Risk of Needing Long Term Care
The U.S. Department of Health and Human Services says about seventy percent of people over age 65 will need long term care during their lifetime. But the need for long term care services is not limited to seniors. There are now forty percent of people currently receiving long term care that are between the ages of 18 and 64. Long term care insurance planning is critical to a financial plan. Critical because traditional health insurance and Medicare do not pay for most long term care services.
To buy Mississippi long term care insurance, individuals must be enjoying good health. And this health qualification aspect makes it important to plan ahead. In general terms, this means buying long term care insurance when you’re somewhere between age 50 and 70 and enjoying good health.
Types of Long Term Care Protection
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. Complete the form on this page to request long term care insurance costs and comparisons specific to your situation.
Mississippi Long Term Care Costs
Mississippians need to know long term care costs when planning for future long term care needs. Mississippi’s current cost of care and future cost projections, tell you how much long term care protection to have in your retirement plan.
A comprehensive study on national long term care costs is from LifePlans, Inc. for John Hancock Life Insurance Company. Their most recent Cost of Care Study surveyed over sixteen thousand long term care providers across the nation. John Hancock Life Insurance Company provides a Cost of Care Calculator. The calculator adjusts long term care costs for inflation. This allows you to better estimate future long term care costs in Mississippi. John Hancock long term care insurance is underwritten by John Hancock Life Insurance Company, one of the largest insurance companies in the United States.
Another 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. Following are Mississippi long term care costs from that study.
Mississippi 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)|
|Mississippi State Median||$85,045||$80,300||$41,910||$38,896|
|Rest of State||$80,300||$78,475||$38,040||$38,896|
Mississippi Long Term Care Tax Credit
The Mississippi Legislature initiated a tax policy in 2007 that encourages Mississippians to buy long term care insurance. This is a state income tax credit on long-term health insurance premiums. This law allows for taxpayers to get a tax credit of 25% of the premium or $500 of “the premium costs paid during the taxable year for a qualified long-term care insurance policy.” Note this is a State of Mississippi tax credit and is not a federal tax credit.
When this legislation became law, Gov. Barbour stated: “Paying for long-term care for our loved ones can be an enormous financial burden on our families. This is one way we can help curb the costs of care, especially when the length of stay is unknown and options are limited.”
According to information provided from the State Tax Commission, the credit cannot exceed a taxpayer’s tax liability and can’t be forwarded to the next year. The enactment of this legislation back in 2007 was under “Senate Bill No 2237.” Please consult your tax adviser for more information.
Mississippi Long Term Care Insurance Partnership
Currently, Mississippi does not have a Long Term Care Insurance Partnership Program. However, section 6021 of the 2005 Deficit Reduction Act does allow for Qualified State LTC Partnerships. This permits States with approved State plan amendments to exclude from estate recovery the amount of LTC benefits paid under a qualified LTC insurance policy. These long term care insurance policies sold under Long-Term Care Insurance Partnership Programs are known as “Partnership Policies”.
Long Term Care Insurance Partnership Programs are three way partnerships. They join The State, long term care insurance companies and the federal Medicaid Program. “Partnership Program” long term care insurance policies must also meet certain federal and state requirements. The purpose of Long-Term Care Insurance Partnerships is to encourage people to plan ahead for how they will pay for future long term care needs. Partnership LTCi Policies provide an extra level of protection, when compared to a regular long term care insurance policy. In particular, such policies permit individuals to protect assets from spend-down requirements under the state’s Medicaid program, if help under Medicaid is ever needed.
There are several strong long term care insurance companies offering LTC insurance in Mississippi. Long-Term Care Insurance Partnership policies often require insurance companies to offer specific policy benefits. This rule can also limit consumer choices in benefit design, but this is not a concern in Mississippi.
Long Term Care Insurance Partnership Reciprocity
Let’s consider the situation where someone buys a Long Term Care Partnership policy where they reside and then later move to another state with a Partnership Program. Reciprocity means they will not lose the special asset protection when they move. Their new home state would also recognize accumulated asset protection for Medicaid qualification, if the person were already receiving long term care benefits from their Long Term Care Partnership policy before relocating.
How Much Does Long Term Care Insurance Cost?
How much does long term care insurance cost in Mississippi? The answer: It depends on your age and health history at the time you buy the insurance. Generally 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.
Mississippi Long Term Care Insurance Rates
Mississippi Long Term Care Insurance policies cost about the same as LTC insurance policies sold in other states. At some ages, Partnership Policies have mandatory inflation protection. This mandated feature of Partnership Policies is not a concern in Mississippi. Where Partnership LTC Policies are available, consumers are advised to compare them to non-Partnership policies. To best understand these differences, we recommend working with an agent specializing in Long Term Care Insurance.
Long Term Care Insurance Companies in Mississippi
Mississippi 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 Mississippi:
Get Mississippi Long Term Care Insurance Quotes!
We’ve specialized in long term care planning since 1990. We give you professional, unbiased advice to help you decide if Long Term Care Insurance is right for your situation. Our independent representatives shop all the major long term care insurance providers in Mississippi and give you:
- Price comparisons customized for your specific needs from respected companies like Genworth Financial, Mutual of Omaha, Transamerica, LifeSecure and others. We also provide detailed comparisons to the AARP LTC insurance offering.
- Benefit comparisons of each insurance company’s policy. This comparison examines both the similarities and differences of each long term care plan.
- Financial stability reviews of each long term care insurance provider’s financial ratings, asset base and claims paying experience.