New Jersey Long Term Care Insurance
This page covers important long-term care information for residents of New Jersey, 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 New Jersey Long-Term Care 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 New Jersey.
Average Costs for Common Long-Term Care Services in New Jersey:
- Nursing Home (private room): $355 (Daily)
- Nursing Home (semi-private room): $330 (Daily)
- Assisted Living Facility (private room): $5,811 (Monthly)
- Home Health Aide (X hours/week): $18 (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 New Jersey: $
- Average Daily LTC Benefit Purchased in New Jersey: $155 (per day)
State Partnership Program
Partnership programs are three-way collaborations between the state, the federal Medicaid program, and long-term care insurance companies. The New Jersey Long-Term Care Partnership Program went into effect in 2008 and requires participating policies 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 New Jersey Long-Term Care Partnership Program also offers reciprocity, meaning that if you purchase a partnership policy in a different state and then move to New Jersey, your assets will remain protected. The same will be true if you purchase a partnership policy in New Jersey 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. 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. New Jersey is an income cap state.
In New Jersey, most Medicaid health coverage is provided through a managed care program called NJ FamilyCare. Within this larger program are a variety of smaller programs specifically designed for the Aged, Blind, and Disabled (ABD) which help provide long-term services and supports to those in need. These programs can provide coverage for doctor’s visits, hospitalization, prescription medication, nursing home care, and home- and community-based services received in-home or in an assisted living facility. Home- and community-based services include personal care, home-delivered meals, modifications to one’s home or vehicle, and more. Like many other states, New Jersey also has a Program of All-Inclusive Care for the Elderly (PACE). The goal of this program, as with the home- and community-based supports in general, is to allow elderly New Jersey residents to receive the care and assistance they need while remaining as comfortable and independent as possible.
Companies Offering Long-Term Care Insurance in New Jersey
New Jersey 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.
More Useful Links:
New Hampshire Long Term Care Insurance