PA Average daily benefit purchased: $ 156 per day.

Pennsylvania is the sixth largest state in the US with a population of over 12.7 million people, and almost 2 million of those people are over the age of 65. What’s more, Pennsylvania has one of the largest proportions of residents over the age of 65, second only to Florida. Pennsylvania’s large and growing number of seniors will increasing use and need Long Term Care services, including care in Nursing Homes, Assisted Living Facilities and Home Health Care.

In 2011 the total Long Term Care expenses in Pennsylvania from Medicaid alone were over $6.8 billion. As baby boomers in Pennsylvania enter retirement, these expenses will continue to rise and Long Term Care Insurance is the solution for easing the potential economic strain this could place on families and the state.

Making sure Long Term Care Insurance is a key part of your retirement plans will help protect your savings in the event you need Long Term Care services.   Pennsylvania offers around 17 different Long Term Care Insurance companies for residents to choose from.

The Pennsylvania Long Term Care Partnership program was established by the Pennsylvania legislature in 2007. This program helps to protect Pennsylvania residents in the event that they outspend their private plans, while also encouraging residents to purchase these plans vs. relying on the overstretched Medicaid system.  In other words, residents of Pennsylvania who take advantage of this program are protected for their Long Term Care needs by both their plans and then, if needed, by Medicaid.

More on Pennsylvania

Pennsylvania residents are eligible to participate in the Pennsylvania Long-term Care Partnership program. Like most states, Pennsylvania has developed a joint effort by the State and private insurers to enable more individuals to purchase Long Term Care Insurance coverage. Awareness of the need for Long Term Care Insurance is still low. Long Term Care Insurance covers the cost of services such as nursing homes, in-home care and assisted-living care when one is unable to care for themselves. These costs are not covered by regular health insurance and only by Medicaid if one qualifies, which can be difficult without exhausting all of your assets.

A recent study found that 7 in 10 Americans have made no plans for long-term care and many were not even aware of this type of insurance and what it covers. And, given that the Department of Health and Human Services estimates that 2/3 of all Americans will need long-term care at some point after they pass age 65, many Pennsylvanians will find themselves in a crunch to pay for their long-term care needs. These folks will be at risk of having to exhaust their nest egg or rely on their children or other relative to care for them in retirement should they become unable to care for themselves.

But, through the Pennsylvania Long-term Care Partnership Program, residents can purchase a “partnership policy” that will help them pay for their long-term care needs while protecting their assets, should they need Medicaid. Pennsylvania is thus rewarding those who plan ahead and take proactive steps to protect themselves and their assets. Basically, it works like this: the Program offers a dollar-for-dollar asset protection match for those who purchase a Long Term Care Insurance partnership program policy. This enables participants to shield their assets should they need to apply for Medicaid as normally one is required to exhaust all assets before qualifying for Medicaid’s long-term care coverage.

Highlights of the plan include: Dollar-For-Dollar Asset ProtectionAs mentioned above, this is a dollar-for-dollar match program and this benefit is not available with non-Partnership policies.

A typical scenario would be: A partnership policyholder uses $200,000 in coverage from their policy and has $200,000 in additional savings and assets. This policyholder is then allowed to exclude up to $200,000 in assets from the Medicaid qualification process thereby protecting these assets from loss. Policies are State-approved and meet consumer protection standardsOnly the top quality insurers are included in this partnership program. Participants qualify for Medicaid Asset ProtectionAs in the scenario above, participants can protect their assets. Only State Approved Partnership Policies provide Medicaid Asset ProtectionPolicies purchased outside of the partnership program do not qualify.

Below is a list of companies offering Pennsylvania-approved Long Term Care Insurance Partnership Program policies and a link to their website, where available:

• Genworth Life Insurance Company
• John Hancock Life Insurance Company (U.S.A.)
• MedAmerica Insurance Company
• Metropolitan Life Ins. Company* (No longer for sale)
• Mutual of Omaha Insurance Company
• Prudential Insurance Company of America* (No longer for sale)

Start planning today for your future and securing all that you’ve worked so hard to achieve for your retirement by purchasing a Long Term Care Insurance policy through Pennsylvania’s Long Term Care Partnership Program.

Pennsylvania Long Term Care Costs

Nursing home (private room) charges in Pennsylvania average at $121,363 per year. With an annual growth rate of 3%, this cost is expected to go up in the coming years. Given that the average long-term care event takes about 3 years, you’d need to pay about $364,089 for care. The average cost of a home health aid is $23 per hour. Knowing these costs is important as you plan ahead for your retirement.

Here’s a table of Pennsylvania long-term care costs in different regions – based on Genworth’s cost of care survey (2018).

REGION	PRIVATE NURSING HOME ROOM	SEMI-PRIVATE NURSING HOME ROOM	ADULT DAY HEALTH CARE	ASSISTED LIVING FACILITY (PRIVATE ROOM)	HOME HEALTH AIDE (AT 44 HOURS WEEKLY)
State Median	$121,363	$115,340	$16,900	$45,000	$51,777
Allentown area	$163,338	$135,050	$16,900	$45,000	$50,336
Altoona	$118,625	$111,690	$16,640	$45,180	$45,760
Bloomsburg area	$99,645	$97,820	–	$43,200	$43,655
Chambersburg area	$132,495	$125,925	$17,680	$54,601	$49,764
East Stroudburg	$117,713	$111,325	–	$41,550	$56,880
Erie	$116,618	$103,660	$17,680	$55,050	$51,480
Gettysburg	$131,765	$123,370	$15,600	$37,200	$52,052
Harrisburg area	$127,385	$118,260	$14,820	$53,010	$50,336
Johnstown	$101,835	$97,455	$10,400	$36,427	$45,760
Lancaster	$132,130	$125,378	$17,160	$52,200	$52,624
Lebanon	$125,013	$116,435	$22,776	$52,290	$53,768
Philadelphia area	$146,000	$124,465	$20,020	$63,810
Pittsburgh	$112,785	$104,390	$16,380	$37,800	$53,768
Reading	$150,015	$134,503	$15,990	$40,800	$52,349
Scranton area	$111,325	$115,158	$17,160	$28,800	$48,048
State college	$123,370	$111,143	$10,400	$45,810	$53,768
Williamsport	$139,065	$115,705	–	$38,700	$54,912
York area	$139,065	$125,925	$19,240	$49,740	$52,624
Rest of State	$93,988	$86,870	$15,600	$36,300	$42,328

Pennsylvania Long-Term Care Premium Costs

Long term care premium rates in Pennsylvania vary from one insurer to the other. Factors such as the applicant’s age and health status will affect the pricing of premiums. When selecting a plan, you’ll have the flexibility to elect a suitable elimination period, maximum benefit, and inflation protection, which also influence the pricing of premiums.

Here’s a sample calculation of Pennsylvania long term care premium costs for individuals aged 50, 55, 60, and 65.

These sample calculators assume a 90 day elimination period, and selected maximum daily benefits of $200 over a 3 year duration.

→ At Age 50

• Single Male, age 50, will pay $1,894 annually
• Single Female, age 50, will pay $2,277
• Couple, both age 50, will pay a combined annual premium of $3,291

→ At Age 55

• Single Male, age 55, will pay $1,967 annually
• Single Female, age 55, will pay $2,381
• Couple, both age 55, will pay a combined annual premium of $3,308

→ At Age 60

• Single Male, age 60, will pay $2,070 annually
• Single Female, age 60, will pay $2,963 per year
• Couple, both age 60, will pay a combined annual premium of $3,390

→ At Age 65

• Single Male, age 65, will pay $2,627 annually
• Single Female, age 65, will pay $3,921 each year
• Couple, both age 65, will pay a combined annual premium of $4,452

Keep in mind that the precise cost will depend on the specific policy you purchase, and the features you have elected. But as you’ll notice from the calculations above, premium rates increase with age. Couples can also land substantial marriage discounts by purchasing the policy jointly.