Minnesota Long Term Care Insurance
This page covers important long-term care information for residents of Minnesota, 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 Medical Assistance and the Minnesota Long Term Care Partnership.
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 Minnesota.
Average Costs for Common Long-Term Care Services in Minnesota:
- Nursing Home (private room): $295 (Daily)
- Nursing Home (semi-private room): $269 (Daily)
- Assisted Living Facility (private room): $3,585 (Monthly)
- Home Health Aide (X hours/week): $21 (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 Minnesota: $
- Average Daily LTC Benefit Purchased in Minnesota: $147 (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 Minnesota Long Term Care Partnership 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, while Minnesota’s qualification requirements are more lenient than those of many other states, the existence of such requirements does still narrow one’s options. 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 Minnesota Long Term Care Partnership also offers reciprocity, meaning that if you purchase a partnership policy in a different state and then move to Minnesota, your assets will remain protected. The same will be true if you purchase a partnership policy in Minnesota and then move to a different state that also offers reciprocity.
Medicaid and Medical Assistance
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.
Minnesota’s Medicaid program is known as Medical Assistance (MA), and can provide coverage for long-term care received both in certified nursing facilities and in one’s own home or community. For qualified Medical Assistance recipients, home- and community-based care is available through the Elderly Waiver (EW) program. This program covers a wide range of services including home-delivered meals, adult day care, home modifications, special supplies and equipment, and visits from skilled nurses, homemakers, and home health aides. Those who are not eligible to receive Medical Assistance can still access many of these same benefits through the Alternative Care (AC) program. The goal of both programs is to allow seniors to receive the care they need while also remaining as comfortable and independent as possible.
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 Minnesota
Minnesota 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, and MassMutual. 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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