Alabama Long Term Care Insurance
This page covers important long-term care information for residents of Alabama, including the average cost of long-term care, the costs of long-term care insurance, the companies offering LTC insurance in the state, and information about the Alabama Long Term Care Insurance Partnership program and the state’s Medicaid programs.
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. This kind of planning is especially important if you are looking to receive in-home care, as Alabama has the second highest rates for home care in the country.
Average Costs for Common Long-Term Care Services in Alabama:
- Nursing Home (private room): $213 (Daily)
- Nursing Home (semi-private room): $200 (Daily)
- Assisted Living Facility (private room): $3,057 (Monthly)
- Home Health Aide (X hours/week): $13 (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 Alabama: $
- Average Daily LTC Benefit Purchased in Alabama: $
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 program are required to meet certain federal and state standards. These policies are also special in that they 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.
The aim of the program, known in Alabama as the Alabama Long Term Care Insurance Partnership program, is to encourage people to plan for their futures by providing an extra level of protection above that of a normal LTC policy. Policies that qualify under the program typically cost about the same as an ordinary long-term care policy would, though it is worth noting that in Alabama, partnership policies purchased at a certain age require the addition of inflation protection, which can drive up the cost a bit. Because of this and the general variability of costs and benefits between policies, it may still be a good idea to look into policies that do not qualify under this program.
The Alabama Long Term Care Insurance Partnership program also offers reciprocity, meaning that if you purchased a partnership-qualified long-term care policy in a different state and then moved to Alabama, your assets will still be protected.
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 services such as nursing homes and visiting nurses. The income requirements for Medicaid are typically handled in one of two ways. Income cap states require that your income be at a certain level when you first apply for Medicaid, while non-cap states will allow you to spend your assets down over time. Alabama is an income cap state.
The Alabama Medicaid agency has three main programs for elderly and disabled persons. The first can be used for institutional care including nursing homes, hospitals, and other specialized facilities. The second provides home and community-based waivers for those who are elderly, disabled, mentally handicapped, homebound, or have specific medical diagnoses. The third is a collection of Supplemental Security Income-related programs.
Companies Offering Long-Term Care Insurance in Alabama
Alabama residents have a variety of long-term care companies and policies to choose from. Popular long-term care insurance companies in Alabama are Genworth, Mutual of Omaha, Transamerica, MassMutual, TransAmerica, Northwestern, 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:
MedAmerica Long Term Care Insurance