Massachusetts Long Term Care Insurance
This page covers important long-term care information for residents of Massachusetts, 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 MassHealth and the exemptions given for purchasing certain types of LTC insurance policies.
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 Massachusetts.
Average Costs for Common Long-Term Care Services in Massachusetts:
- Nursing Home (private room): $410 (Daily)
- Nursing Home (semi-private room): $385 (Daily)
- Assisted Living Facility (private room): $5,599 (Monthly)
- Home Health Aide (X hours/week): $20 (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 Massachusetts: $
- Average Daily LTC Benefit Purchased in Massachusetts: $159 (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 a 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.
Massachusetts does not have a formal state partnership program. However, there are exemptions in place that provide similar benefits. To qualify for MassHealth Exemptions, your long-term care insurance policy must cover at least 730 days of nursing home care, pay no less than $125 per day for that care, have an elimination period shorter than one year, and meet certain standards set by the Division of Insurance. The “nursing home care” element is key here, as time and money put towards care received at home or another non-nursing-home environment will not count towards the requirement. Like a partnership policy, these exemptions allow you to qualify for coverage under MassHealth while retaining a larger-than-normal amount of assets.
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.
The Medicaid program for Massachusetts is known as MassHealth and can be used to help pay for long-term care in a variety of settings, including certified nursing homes, adult day care centers, adult foster care (AFC) homes, and in the individual’s own house. In-home programs and services covered by MassHealth include the Home Care Program as well as various Home- and Community-Based Services (HCBS) Waiver programs, both of which are designed to allow eligible seniors to receive the care they need while remaining as comfortable and independent as possible.
Companies Offering Long-Term Care Insurance in Massachusetts
Massachusetts 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, MassMutual, TransAmerica, New York Life, and Northwestern. 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.
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Maryland Long Term Care Insurance