Michigan Long Term Care Insurance
This page covers important long-term care information for residents of Michigan, including the average cost of long-term care (LTC), the costs of LTC insurance, popular companies offering LTC insurance in the state, and information about Medicaid and the Michigan Long-Term Care Insurance Partnership Program.
Paying for Long-Term Care
Long-term care is expensive, and the costs associated with it can add up quickly. It is important to keep these costs in mind as you plan for your future long-term care needs, even if you don’t end up purchasing a long-term care insurance policy. To help give you a better idea of the expenses you may face, below we have listed the average prices for some commonly used LTC services in Michigan.
Average Costs for Common Long-Term Care Services in Michigan:
- Nursing Home (private room): $283 (Daily)
- Nursing Home (semi-private room): $262 (Daily)
- Assisted Living Facility (private room): $3,500 (Monthly)
- Home Health Aide (X hours/week): $17 (Hourly)
The Costs of Long-Term Care Insurance
The cost of long-term care insurance is impacted by several factors and can vary greatly from policy to policy and person to person. How much you pay will change depending on the amount of coverage you select, the maximum amount of benefit the policy will pay per day, the maximum number of years (typically measured in days) that the policy will pay out, and the total amount that will be available through the policy. The length of the elimination period and the types of services covered by the policy will also influence the cost, as will optional extras such as inflation protection. Other, less-obvious factors can play into a policy’s cost as well. To learn more, please see our article on the subject.
- Average Yearly Premium for an LTC Insurance Policy in Michigan: $
- Average Daily LTC Benefit Purchased in Michigan: $142 (per day)
State Partnership Program
Partnership programs are three-way collaborations between the state, the federal Medicaid program, and long-term care insurance companies. Policies issued as part of the Michigan Long-Term Care Insurance Partnership Program are required to meet certain federal and state standards. These policies also help protect your assets from the spend-down requirements of Medicaid by allowing you to qualify for Medicaid coverage with a larger-than-normal amount of assets. The specific amount typically varies based on the total benefits paid out by your policy.
Rates for policies qualifying under this program do not differ significantly from those of non-qualified policies offering similar benefits. However, the regulations and requirements that must be met for a policy to qualify under this program also mean that these policies have less flexibility than many non-partnership policies. For example, depending on your age, inflation protection may be a mandatory feature of your policy. Because of this, it is a good idea to shop around and look at non-partnership policies in addition to those that qualify under the program so you can be sure that you have chosen the best policy for your needs and budget.
The Michigan Long-Term Care Insurance Partnership Program also offers reciprocity, meaning that if you purchase a partnership policy in a different state and then move to Michigan, your assets will remain protected. The same will be true if you purchase a partnership policy in Michigan and then move to a different state that also offers reciprocity.
If you can’t afford a long-term care insurance policy or your coverage window ends but you still require care, Medicaid is a viable option. Medicaid is the federal and state health insurance program for people with lower incomes and can be used to cover basic long-term care services. Because Medicaid is designed for low-income individuals, certain financial requirements must be met in order to qualify.
Michigan’s Medicaid program can provide coverage for several different long-term care settings and services. Care in a certified nursing home is one of the most widely used options, but it is far from the only one. Many people prefer to stay in their own home or community, and can receive Medicaid coverage for care in these settings through MIChoice, the state’s home- and community-based waiver program. Services available under this program include house cleaning, home modifications, transportation, private nursing, personal care, and home-delivered meals. There is also the Home Help Services Program, which allows participants to hire a friend, family member (not including spouses), or professional to provide assistance with housework, personal care, meal preparation, and more. Medicaid may also cover special equipment such as lift chairs. Last but not least, there is the Program of All-Inclusive Care for the Elderly (PACE), which is features integrated Medicare and Medicaid coverage for seniors who meet certain eligibility criteria. The program is designed to allow participants to remain in the comfort of their own homes while still receiving the care they need.
You may also be able to receive help through an organization outside of Medicaid, such as your local Agency on Aging. Organizations like this can provide care management, home-delivered meals, and other in-home services to those in need.
Companies Offering Long-Term Care Insurance in Michigan
Michigan residents have a variety of long-term care companies and policies to choose from. Popular long-term care insurance companies in this state include Genworth, Mutual of Omaha, TransAmerica, MassMutual, Northwestern, and New York Life. Please take a look at our articles on these insurance companies and others to learn more about their histories, reputations, financial strength, and the policies they offer.
More Useful Links:
Massachusetts Long Term Care Insurance