California Long Term Care Insurance
Learn about California long term care insurance. Get expert guidance and free quotes from LTC Tree.
Someone turning 65 today has roughly a 70% chance of needing long-term services and supports during their lifetime, per the federal Administration for Community Living (longtermcare.gov) — a risk that is especially costly in California, where private-pay nursing and in-home care rates consistently rank among the highest in the nation. California also leads every other state in total Medicaid long-term services and supports spending, per KFF State Health Facts.
California has the largest 65-and-older population in the U.S. — roughly 6.5 million residents, or about one in six Californians, per U.S. Census Bureau state population estimates — and that cohort is growing faster than any other age group in the state.
What Long-Term Care Costs in California
Data as of 2024.
California metropolitan areas — led by the Bay Area, Los Angeles, and San Diego — consistently price above national medians for skilled nursing, assisted living, and home health. Facility-level rates for Medicare- and Medi-Cal-certified nursing homes can be looked up on Medicare.gov Care Compare, which publishes star ratings and staffing data but does not publish private-pay median rates.
Medi-Cal's reimbursement to nursing facilities is lower than the private-pay rate most Californians see when they walk into a facility without a long-term care plan in place. For in-home care, hourly rates vary substantially by county and agency, with coastal Southern California and the Bay Area running meaningfully above inland Central Valley markets.
Because Californians who self-fund care are exposed to the state's higher private-pay rates — not the Medi-Cal reimbursement rate — the gap between "what the program pays" and "what a facility charges you" is the single most important cost fact to plan around.
Paying for Long-Term Care in California
California has several unusual state-specific rules that change the math on long-term care planning:
- Medi-Cal eliminated the asset test for long-term care. Effective January 1, 2024, California became the only state to remove the countable-asset limit entirely for Medi-Cal (including long-term care coverage). Eligibility now turns on income, residency, and medical necessity rather than savings. Program details are published by the California Department of Health Care Services at the DHCS long-term care page.
- California Partnership for Long-Term Care is dormant. California was one of the four original Partnership states (1994), but no carrier is currently selling new California Partnership-certified policies. Existing policyholders keep their dollar-for-dollar Medi-Cal asset-disregard rights; with the 2024 asset-test elimination, the practical planning value of a new Partnership policy has diminished, per DHCS.
- No state LTC payroll tax has been enacted. California AB 567 (2019) created the Long-Term Care Insurance Task Force, which submitted feasibility and actuarial reports to the Legislature. As of April 2026, no statewide public LTC benefit or payroll tax has passed. Unlike Washington state's WA Cares Fund, there is no California public LTC benefit being collected today.
For state-level consumer help, Medi-Cal is administered by the Department of Health Care Services, and long-term-care residents and their families can reach the California Long-Term Care Ombudsman Program or their county Area Agency on Aging for independent advocacy.
Long-Term Care Insurance Options for California Residents
Several household-name carriers have exited the California individual traditional LTCi market over the past decade, leaving a thinner but still functional market of traditional and hybrid options. For the current list of insurers authorized to sell long-term care insurance in California and their approved products, consult the California Department of Insurance.
California residents shopping today generally choose between two structures:
- Traditional, standalone LTCi — reimbursement or cash-indemnity policies that pay only if you need qualifying care.
- Hybrid life + LTC — permanent life insurance with a long-term care rider that returns a death benefit if care is never needed.
What Drives Your California LTC Premium
Because California private-pay rates run well above national medians, the benefit amount a California resident needs is larger than in many other states — and benefit amount is the single biggest premium lever.
- Age at application — premiums climb through the 50s and accelerate after 65.
- Health rating — preferred vs. standard can move premiums 25-40%.
- Benefit design — monthly benefit, benefit period, and elimination period.
- Inflation protection — a 3% compound rider roughly doubles a level-benefit premium.
- Spousal/partner discount — usually 15-30% when two applicants qualify together.
- Carrier selection — the same profile can see a 20%-plus spread across active California filers.
Request a personalized quote using the form on this page.
Tax Benefits for California Residents
State tax treatment. California generally conforms to the federal treatment of qualified long-term care insurance premiums as a deductible medical expense. California does not offer a separate stand-alone state LTC premium credit. For state-specific consumer guidance, see the California Department of Insurance (linked above).
Federal treatment. Premiums for tax-qualified LTC insurance are deductible as a medical expense up to age-based annual limits. The 2025 eligible-premium limits from IRS Revenue Procedure 2024-40, Section 3.24:
| Age at End of Tax Year | 2025 Eligible Premium Limit |
|---|---|
| 40 or under | $480 |
| 41 through 50 | $900 |
| 51 through 60 | $1,800 |
| 61 through 70 | $4,810 |
| 71 and older | $6,020 |
As a medical expense, the deduction applies only to the portion that, combined with other medical expenses, exceeds 7.5% of AGI. Self-employed Californians can generally deduct qualified premiums above the line under the self-employed health insurance deduction, subject to the same age caps. HSA funds can pay qualified LTC premiums tax-free up to the same limits.
Next Steps for California Residents
Because California removed the Medi-Cal asset test in 2024, the California Partnership is dormant, and no statewide public LTC benefit has been enacted, private long-term care insurance remains the primary way to protect household income, home equity, and family caregivers from California's above-median private-pay rates. The fastest next step is to compare active California-filed carriers side by side — use the quote form above to start.
Disclaimer
This page is educational and general in nature, not a solicitation or offer of a specific insurance product, and not tax or legal advice. Long-term care insurance availability, pricing, and underwriting vary by carrier, state, and applicant. For personalized guidance, contact a licensed specialist. For the current list of authorized carriers in California, consult the California Department of Insurance.
California Long Term Care Insurance FAQs
How much does long term care insurance cost in California?
Premiums in California depend on age at application, health, benefit amount, and inflation protection. Most California residents pay between $1,500 and $4,500 per year for a comprehensive policy, and the cost is locked in when you apply. Applying earlier and in better health typically results in the lowest California LTC insurance rates.
Does California have a Long Term Care Partnership program?
Most states including California participate in the federal/state Long Term Care Partnership program. A Partnership-qualified policy in California lets you protect assets equal to the benefits your policy pays out if you ever need to apply for Medicaid, on top of the usual Medicaid asset limits. Ask your specialist whether a given carrier's policy is Partnership-certified in California.
What does long term care insurance cover in California?
A California long term care policy typically reimburses the cost of care you receive when you cannot perform at least two activities of daily living, or when you have a cognitive impairment such as Alzheimer's. Covered care settings generally include home health care, adult daycare, assisted living, memory care, and skilled nursing facilities located in California or anywhere in the U.S.
When should I buy long term care insurance in California?
Most California residents who buy LTC insurance do so in their mid-50s to mid-60s, before rates rise sharply and before health conditions make coverage harder to qualify for. Buying earlier locks in lower premiums for life, while waiting risks higher costs or being declined outright.
Is long term care insurance tax deductible in California?
Yes — premiums for qualified long term care insurance policies are deductible as medical expenses on your federal return, up to IRS age-based limits that are indexed annually. California may offer additional state tax credits or deductions for LTC premiums; your LTC Tree specialist can confirm the current rules that apply to residents of California.
Which carriers offer long term care insurance in California?
LTC Tree is an independent broker and shops every major carrier licensed in California, including Mutual of Omaha, Nationwide, Securian, National Guardian Life, OneAmerica, Thrivent, Lincoln Financial, and others. Each California applicant's situation is different — we run rates across carriers and present the best fit for your age, health, and budget.