We wrote an article in 2007 that outlined some of the basics of the various Partnership plans. In a nutshell, Partnership plans are designed by the states to encourage middle-income citizens to purchase Long Term Care Insurance. In Arizona, the program provides access to Medicaid in an accelerated fashion for those who have assets. There are plenty of caveats that come along with the program, so you’ll want to review all of the rules. But, in general, here are a few pointers:
- You may shield up to the same dollar amount as your Long Term Care Insurance policy has paid out. For someone purchasing an average plan today (5 yrs, $150/day), that will be well over $1,000,000 in asset protection in 30 years.
- You will need to purchase inflation protection, subject to age limitations.
- You will still have to meet all other Medicaid qualifications.
Because the Arizona Partnership Program for Long Term Care is so complicated, it is very important to find an agent who understands the implications of it. LTC Tree has a network of agents in Arizona and some outside the state who have been educated and certified in the Arizona Long Term Care Insurance state partnership programs for several years, we understand the law and how it may benefit you in your retirement planning.
If you are an Arizona resident, and are interested in the Arizona Long Term Care Insurance Partnership, please allow us to put together our industry leading quote comparisons tailored just to your needs by simply filling in our form below.
Cost of Long Term Care in Arizona
It’s important to know the cost of long term care in Arizona so you can select enough insurance coverage based on your area of residence. Below is a table that highlights the cost of care in different regions of Arizona, based on Genworth’s 2018 cost of care survey.
|2018 Annual Cost of Long Term Care in Arizona
||PRIVATE NURSING HOME ROOM
||SEMI-PRIVATE NURSING HOME ROOM
||ADULT DAY HEALTH
||ASSISTED FACILITY (PRIVATE ROOM)
||HOME HEALTH AIDE (44 HOURS WEEKLY
|Lake Havasu City area
|Sierra Vista area
|Rest Of State
Cost of Long Term Care Insurance Premiums in AZ
Premium rates for long term policies can vary depending on aspects such as your age at the time of purchase. LTC Tree recommends that you purchase LTC insurance when young and healthy because you will likely meet most if not all requirements. Your long term care insurance premiums cost in Arizona are also determined by the following:
- Benefit period – this refers to the total amount of time (in years) throughout which the insurance policy will pay out benefits.
- Daily maximum benefit – refers to the maximum dollar amount an LTC policy will reimburse you for each day when you receive care.
- Elimination period – an elimination period is the length of time between when you start receiving care and when the policy starts paying for that care.
- Inflation protection – when selected, this policy feature ensures that the benefit dollars you receive should you need long term care in the future are adjusted for inflation.
Arizona LTC Premium Cost Calculations
LTC Tree insurance specialists calculated the average premium cost for males, females, and couples seeking to purchase LTC insurance within the 50 – 65 age bracket at 5 year intervals.These sample premium calculations assume that the policy applicant selects an elimination period of 90 days, a daily maximum benefit of $200, and a benefit period of 3 years.
→ At Age 50
Single Male, Age 50, pays $1894 annually
Single Female, Age 50, will pay $2,277
Couple, each age 50, pays a combined $3,291 annually
→ At Age 55
Single Male, Age 55, pays $1,967 annually
Single Female, Age 55, will pay $2,381
Couple, each age 55, pays a combined $3,308 annually
→ At Age 60
Single Male, Age 60, pays $2,070 annually
Single Female, Age 60, will pay $2,963
Couple, each age 60, pays a combined $3,390 annually
→ At Age 65
Single Male, Age 65, pays $2,627 annually
Single Female, Age 65, will pay $3,921
Couple, each age 65, pays a combined $4,453 annually
Note: premium rates increase as you get older, regardless of gender. Women also tend to pay more for long term care insurance compared to men of the same age. Another important observation from the calculations above is that couples who decide to purchase their policy jointly can save a lot of money in annual premium rates.