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Last Updated November 5, 2019

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New Jersey Long Term Care, Insurance, Partnership Program, Premiums & Policy Quotes  

Long term care(LTC) entails helping the elderly and disabled individuals with normal daily activities such as walking, bathing, grooming, dressing, or even using the toilet. These services are provided by specialists in Assisted Living Facilities, Nursing Homes, or in the comfort of your own house. Lack of knowledge and ignorance on long term care has seen many families lose assets and emotional welfare as they struggled to care for loved ones over extended durations. 

New Jersey is the 11th most populous state in the country – despite being one of the smallest in size. The Garden State has a population of nearly 9 million residents with senior citizens making up 13.5% of the population. Because more than 1.4 million Americans over 65 years old live here, there’s high demand for long term care services. New Jersey has various institutions and facilities that offer quality long term care as well as companies that help families and individuals access the best of LTC insurance.

Residents of NJ received significant support from the state thanks to the introduction of special programs such as The New Jersey Long Term Care Partnership. This program ensures that residents receive only the best of long term care coverage and are protected from losing their assets. This page will answer any questions you may have concerning Long Term Care in the Garden State.

Paying for Long Term Care in New Jersey 

When it comes to funding long term care services, residents of New Jersey have the following options:

  1. Medicare

Medicare is a federal health insurance program for people aged 65 years or older, as well as some younger people with disabilities. This program is administered by the U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS). Medicare is a strict program that checks eligibility of every applicant based on certain set standards. The program requires you to have stayed in hospital for at least three days before paying for the alternative of a LTC facility. If already in a LTC facility, your primary physician should verify that you need daily skilled nursing care before Medicare helps with the medical expenses. Medicare will cover nursing facility costs for only 100 days – with co-pay after the 20th day.

  1. Medicaid

Medicaid is also a federal program that helps citizens pay for medical bills and services. In New Jersey, the State Department of Human Services in conjunction with the county welfare administers the financial eligibility for the Medicaid program. Over half of nursing home residents in the state are beneficiaries of the Medicaid program. To be eligible for Medicaid, one needs to meet the primary requirement of not owning more than $2,000 worth of assets. New Jersey has a considerate Medicaid program that sees Long Term Care Officers from the state assess an individual to determine whether home care would be appropriate before placing the individual in a Medicaid certified facility.

  1. Personal funds

You can choose to use your finances to pay for long term care that will suit your needs. In New Jersey, over 24% of residents pay for Long Term Care using personal resources despite the financial strain this expense have on family assets. It should be noted that a private room in a nursing home costs $142,350 a year (2018 estimates), notwithstanding the 4% annual growth rate. The average long term care duration in New Jersey is 3 years – that would mean spending $427,050 ( $142,350 x 3) to sustain a single LTC event. Needless to say, this kind of money is out of reach for most New Jerseyans. 

  1. Long Term Care Insurance

For many New Jerseyans, insurance is the most reasonable option to protect from devastating long term care costs. Over two thirds of seniors in the state will end up needing long term care at one time or the other. By purchasing insurance when you are healthy, you can be sure that you’ll receive quality long term care should need be. LTC insurance is available in two options – traditional or hybrid. Traditional long term care insurance requires that you pay annual premium for long term care coverage if and when you need it. This type of arrangement has become less popular in recent years due to its use-it-or-lose-it nature and unpredictable premium hikes. Hybrid long term care insurance is typically a combination of permanent life insurance and long term care. You can purchase a hybrid policy by making a single lump sum deposit, or several smaller deposits spread out over a few years. If you need LTC, then the policy will pay out benefits. However, if you do not need long term care, a death benefit will be paid out to your beneficiaries. 

New Jersey residents have a choice of around 17 great Long Term Care Insurance companies that can help protect their savings in the event they need Long Term Care services. With this many companies to choose from Long Term Care insurance should be a key part of NJ residents’ retirement plans. LTC Tree is dedicated to finding you a perfect policy that will give you a perfect life.

Most Popular Long Term Care Companies in New Jersey

  1. Genworth
  2. Mutual of Omaha
  3. Transamerica
  4. Mass Mutual
  5. MOO
  6. New York Life LTC Select Premier 5.5

New Jersey Partnership for Long Term Care

→ What is an LTC partnership program?

An LTC partnership program is a collaboration between the state and private insurers that seeks to provide quality long term care to citizens. New Jersey has the New Jersey Long Term Care Partnership Program that combines both private and public sectors to effectively offer residents affordable and quality LCT insurance while protecting their assets.

The New Jersey Long Term Care Partnership program is a public-private partnership and innovative program that offers New Jersey residents affordable, quality long-term care insurance for needed care without depleting all their assets. Via this program, residents are able to purchase Long Term Care Insurance with a number of policy options that meet certain State-mandated criteria. New Jersey, like many states, aims to reward those who do their part in solving this problem of Long Term Care Insurance coverage by planning ahead and protecting themselves and their assets. 

Basically, it works like this: the Partnership programenables people who purchase certain long-term care insurance policies to have more of their assets protected if they later need to have the state pay for their long-term care. For example, if you receive $100,000 in benefits under your long-term care insurance, you may be allowed to protect an additional $100,000 in assets at the time you apply for Medicaid/Medical Assistance through a feature known as “Asset Disregard” under New Jersey’s Medicaid program.

→ Highlights and requirements for certified partnership policies

  • Meet the requirements for being “tax qualified” as defined in
    Section 7702B(b) of the Internal Revenue Code
  • Meet certain consumer protection requirements in
    Section 6021(a)(1)(B)(5)(A) of the Deficit Reduction Act, which are taken from the NAIC model act of 2000
  • Provide inflation protection if the person is under age 76:
  • For issue ages under 61: If a policy is sold to a person under the age of 61, it must provide compound annual inflation protection. Inflation protection must be continued until at least age 66 to be considered meaningful protection allowing the policy to maintain Partnership status.
  • For issue ages 61 through 75: If a policy is sold to a person aged 61 through 75, the policy must provide some level of inflation protection. Inflation protection must continue for the first five consecutive years following the date of purchase, or until age 76, whichever occurs first, to be considered meaningful protection allowing the policy to maintain Partnership status. After the first five years, a policy sold to a person aged 61 through 75 may, but is not required to, provide inflation protection to maintain Partnership status.

Cost of Long Term Care in New Jersey

With a monthly cost of $11,863, New Jersey is the 6th most expensive state for a private nursing home room in the country. These rates are increasing at an average rate of 3% every other year. It’s important to know the cost of long term care in New Jersey so you understand how much insurance you need to buy. 

Annual cost of care table NJ (based on 2018 estimates by Genworth Financial)
REGION PRIVATE NURSING HOME ROOM SEMI-PRIVATE NURSING HOME ROOM ADULT DAY HEALTH CARE ASSISTED FACILITY (PRIVATE ROOM) HOME HEALTH AIDE (44 HOURS WEEKLY)
State Median $142,350 $127,750 $23,400 $72,780 $54,912
Atlantic City area $114,063 $104,938 $24,180 $61,200 $53,768
Ocean City $132,495 $122,275 $25,090 $57,600 $48,620
Trenton $135,050 $124,100 $22,100 $86,760 $54,912
Vineland area $142,350 $127,750 $24,960 $82,260 $52,052

 

NJ Long Term Care Insurance Premium Costs 

→ How much does long term care insurance cost in New Jersey?

The cost of long term care insurance premiums in NJ depends on your health history and age at the time you purchase the insurance. Premium rates tend to be lower when you are younger and healthy. Other factors that may influence the cost of LTC premiums in New Jersey include:

  • 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 amount of money that a LTC policy will reimburse you for each day you receive care.
  • Elimination period – this is  the duration between when you start receiving care and when the policy starts paying for that care.
  • Inflation protection – this feature ensures that the benefit dollars you receive, should you need long term care in the future, are adjusted to match the dollar value at the time of reimbursement.

→ Sample Calculations Of Long Term Care Premium Costs in New Jersey

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 $4,496
  • Couple, each age 65, pays a combined $4,453 annually

Premium costs for long term care insurance go up with age. It’s also evident that women tend to pay more regardless of the age bracket. Couples who pay for long term care jointly get discounts – up to 30% less than they would pay with individual policies.

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