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New York Long Term Care Insurance, LTC Partnership, Premium Rates, & Quotes

The Empire State is among the 5 states with the most expensive nursing home care, according to a 2018 study by SeniorLiving.org. With over 19.5 million citizens (nearly 3 million of whom are over 65 years old), the state is also one of the leading consumers of long term care services such as assisted living, home health care, and adult daycare.

According to the U.S Department of Health and Human Sciences, someone turning 65 years today has a 70% chance of needing long term care. In New York, the average duration of time through which people need long term care is 3 years. That brings the total cost of a long term care event to $438,822 (given an annual average of $146,274) at 2018 rates. This huge expense, given the fact that the state’s population is increasingly aging – has continued to place huge stress on public and private finances.

For the majority of New Yorkers, and Americans by extension, buying insurance is the best way to protect against the huge financial burden of long term care. Most families fail to plan ahead only to scramble for a solution when a loved one suffers from cognitive impairment or is unable to perform the activities of daily living (eating, bathing, dressing, toileting, continence, and transferring). Even more worrying is the fact that Medicaid and/or Medicare provide very limited benefits, assuming you meet stringent eligibility requirements for both. 

It’s crucial to plan ahead to avoid any massive expenses that threaten to deplete your savings, and for your family’s peace of mind as well. At LTC Tree, we educate our clients to take responsibility for their long term care costs, whether through purchase of insurance or alternate arrangements. 

Types of long term care insurance in New York

Because health insurance does not cover long term care, you’ll need to make alternate plans to live the way you want in retirement. While you may pay for long term care out of pocket, or using a combination annuity, insurance is by far the most common option. There are two types of LTC insurance:

  • Traditional LTC insurance – conventional long term care insurance provides coverage for facility care, in-home care, or care provided by certified family members. This type of insurance comes in very handy if and when you need comprehensive long term care. You have flexible options when buying the plan, and you also get to choose the type of care you need. Traditional long term care insurance offers the broadest set of options, protection for your income and assets, as well as the most coverage for your dollar. A major downside with this type of insurance is premium increases. Most companies that started selling these plans over the last two decades have somewhat increased premium rates over the last few years.
  • Hybrid LTC insurance – hybrid policies combine the benefits of permanent life insurance with long term care benefits. You can purchase a hybrid LTC policy by depositing a single lump-sum premium or a series of smaller deposits. A major benefit of these plans is that they overcome the use-it-or-lose-it approach typical with traditional LTC insurance. If you do not need long term care, a death benefit will be paid out to your beneficiaries. But if you do need care, the amount available can exceed the death benefit value, often several times over. This offers maximum leverage for your premium dollars.

Most popular long term care companies in New York

  1. Mutual of Omaha
  2. Genworth
  3. Mass Mutual
  4. Transamerica
  5. Prudential

New York Long Term Care Partnership

New York was one of the four original pioneering Long Term Care Insurance Partnership State, creating its program in 1992. The goal of this public-private partnership was to educate citizens about the importance of long-term care as part of a retirement plan. The State Partnership rewards and encourages New Yorkers to take personal responsibility for their future long-term care needs and purchase a Long Term Care Insurance policy. If you buy a partnership approved policy in the state of New York, then you may be able to get Medicaid coverage even after your LTC insurance benefits have been exhausted. Qualification for this special coverage depends on income – and policyholders are usually able to keep some or all of their assets while receiving full Medicaid support.

To buy a qualified state partnership policy, the applicant needs to be meet underwriting requirements by the insurer. Because New York partnership policies offer asset-protection, you’ll be able to shield your savings and family members from the often-devastating cost of long-term care. Keep in mind that once you have exhausted your long-term care plan benefits, you’ll need to apply for Medicaid separately to take advantage of this asset protection.

New York State Partnership Reciprocity

It’s important to note that asset disregard under the State Medicaid Program only applies to New York State residents. However, asset protection for plans bought under other states’ partnership programs may be available when you move to New York if the said state participates in Medicaid Reciprocity with New York.

New York Long Term Care Costs

The cost of long term care in New York will depend on the area where you live, and the type of care you need. Nursing home care tends to be more expensive than assisted living facilities and adult care centers. Learning about the costs of LTC in New York is important so you can leverage this when selecting an insurance policy or strategizing your protection plan for this likely expense.

Here’s a breakdown of NYC costs of long-term care based on 2018 estimates by Genworth Financial

REGION PRIVATE NURSING HOME ROOM SEMI-PRIVATE NURSING HOME ROOM ADULT DAY HEALTH CARE ASSISTED LIVING FACILITY (PRIVATE ROOM) HOME HEALTH AIDE (at 44 Hours Weekly)
State Median $146,274 $141,073 $19,500 $50,220 $57,200
Albany area $157,994 $150,205 $13,000 $60,600 $58,344
Binghamton $133,094 $130,192 $22,100 $63,240 $55,484
Glens falls $136,437 $132,539 $33,995 $31,200 $54,912
Kingstone $154,369 $150,081 $31,200 $49,200 $57,200
Buffalo Area $152,030 $135,415 $13,000 $46,740 $56,285
New York Area $155,125 $145,088 $23,400 $70,989 $57,200
Rochester $153,665 $146,000 $19,500 $52,755 $57,200
Syracuse $146,365 $141,620 $23,400 $50,220 $59,488
Utica Area $177,348 $114,986 $26,000 $31,500 $57,200
Watertown Area $140,525 $133,466 $13,000 $66,105 $53,196
Elmira $144,934 $140,189 $24,180 $68,514 $60,632
Ithaca $119,538 $114,975 $22,360 $60,000 $59,488
Rest Of State $118,625 $114,610 $22,750 $40,320 $58,344

 

New York Long Term Care Premium Costs

Long term care insurance pays for quality care in your own home, nursing home, or assisted living facility – if you need it. Given that the annual average cost of long-term care in New York is well over $146,000 (for a private room at a nursing facility), you see how important an LTC policy is for your peace of mind. When shopping for this important type of insurance, there are a few factors that will affect the cost of premiums.

  1. Your age – the younger you are, the less expensive premiums tend to be.
  2. Your health – your current health is the single most important factor when it comes to purchasing long term care insurance. Many policies will automatically disqualify you if you have been treated or sought advice for certain types of ailments within a period of 6 months.
  3. Daily benefits – there’s a direct relationship between the amount of daily benefits that you’re looking for, and the cost of premiums.
  4. Inflation protection – policies that have inflation protection selected tend to have higher premium rates.
  5. Benefit duration – for how long do you want your policy to cover long term care expenses? The longer the benefits period, the more expensive the premiums. Based on government estimates, the national average duration of stay at a nursing home is 2.4 years.
  6. Elimination period – this refers to the number of days/months you have to wait before benefits begin. The shorter the elimination period, the higher the premiums.
  7. Discounts available – married discounts, preferred health discounts, and other types of discounts can dramatically reduce the cost of your New York LTC premiums.

Sample premium calculations

NOTE: these sample calculations assume the applicant has elected daily maximum benefit amount of $300, a 3-year benefit duration, and a 90 day elimination period.

Age & Gender Sample Annual Premium Cost
Male, Age 50 $2,841
Female, Age 50 $3,416
Male, Age 55 $2,950
Female, Age 55 $3,571
Male, Age 60 $3,105
Female, Age 60 $4,444
Male, Age 65 $3,941
Female, Age 65 $5,881
Couple, Age 65 $3,340 (each)

 

When it comes to long term care insurance, there’s no ‘one size fits all’ policy. You have to wade through all the options available in the state of New York and find a plan that best fits your budget and situation. The best way to go about this is to speak to a qualified New York long term care insurance specialist who can help you make the right choice for your financial planning.

Protect your future

Purchasing long term care insurance puts you in control of your life because you can be sure you’ll receive quality long term care if and when you need. LTC Tree has helped thousands of New Yorkers navigate the many choices in long term care insurance plans and find one that best suits their needs and circumstances. Whether you’re looking to take charge of your own retirement future or protect your family from the insane costs of long-term care, our LTC specialists in New York are ready to help!

 

 

 

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