TN Average daily benefit purchased: $ 136 per day.

The state of Tennesse’s population is over 6.3 million people, and as the US Census shows, over 850,000 residents in the Volunteer State are 65 years or older. That’s over 850,000 residents and counting in Tennessee who will increasingly need and use Long Term Care. If not prepared with Long Term Care Insurance, this rising number of seniors will put increasing economic stress on families and the state. In 2011, the total Long Term Care Medicad expenses in Tennessee were over $1.4 billion.

When planning for retirement, Long Term Care Insurance is a key component for securing one’s financial future, and in Tennessee, residents have the choice of around 17 great Long Term Care Insurance companies that can help protect their savings in the event they need Long Term Care services.

The Tennessee Long Term Care Partnership program became effective in October, 2008. This program is a joint partnership between the state’s Medicaid program and the insurance companies and was designed to help Volunteer State residents protect their assets by providing an incentive to buy a Long Term Care Insurance policy. Purchasing a Long Term Care insurance policy through the partnership program means you are not only protected by your policy, but also by Medicaid if you ever exceed the benefits of that policy.

More on Tennessee

Tennessee has a rapidly aging population and awareness of the need for Long Term Care Insurance remains 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 and is not covered by regular health insurance and only by Medicaid if one qualifies, which can be difficult without exhausting all of your assets. The Tennessee Long Term Care Partnership Program “is a partnership between the state government and private insurance companies to assist individuals in planning their long-term care needs. Insurance companies voluntarily agree to participate in the Partnership Program by offering long-term care insurance coverage that meets certain State and Federal requirements. Long-term care insurance policies certificates that qualify as Partnership Policies Certificates may protect the policyholder’s certificate holder’s assets through a feature known as “Asset Disregard” under TennCare, Tennessee’s Medicaid program.

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, this does, indeed, constitute a problem to be reckoned with. Many Americans, regardless of the State in which they live, are now 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. Fortunately, innovative solutions like the Tennessee Long Term Care Partnership Program mean that you can tackle this problem yourself and prepare for a peaceful, secure retirement.

Residents of Tennessee are able to participate in the Tennessee Long Term Care Insurance Partnership Program via a number of policy options that meet certain State-mandated criteria. Tennessee, like many states, aims to reward those who do their part in solving this problem of Long Term Care Insurance coverage by planning ahead and protecting themselves and their assets. Basically, it works like this: those who purchase a qualifying partnership policy are eligible for “Asset Disregard” which “means that an amount of the [policyholder’s] [certificateholder’s] assets equal to the amount of long-term care insurance benefits received under a qualified Partnership [Policy] [Certificate] will be disregarded for the purpose of determining the insured’s eligibility for Medicaid.” So, you can keep what you’ve worked so hard to accumulate your whole life.

Highlights and requirements of the Tennessee Long Term Care Insurance Partnership program include:

In order for a policy to qualify as a Partnership Policy, it must, among other requirements:

• Be issued to an individual after February 8, 2006;
• cover an individual who was a Tennessee resident when coverage first becomes effective under the policy;
• be a tax-qualified policy under ‘ 7702(B)(b) of the Internal Revenue Code of 1986;
• meet stringent consumer protection standards;
• and meet the following inflation requirements: For ages 60 or younger – provides compound annual inflation protection
• For ages 61 to 75 -provides some level of inflation protection
• For ages 76 and older – no purchase of inflation protection is required

The “annual inflation protection” requirements are critical here.

Cost of Long Term Care in Tennessee

It’s important you understand how long term care services cost in your part of Tennessee so you can plan in advance. The table below highlights the cost of nursing home rooms, adult day health care, assisted living facilities and home health aides in the Volunteer State.

Long Term Care Insurance Premium Costs

Premiums cost for long-term care policies can vary depending on aspects such as your age at the time of purchase. LTC Tree recommends that you purchase LTC insurance when young and healthy because you will most likely meet all requirements. Long term health insurance premium rates in TN are also influenced by:

• Benefit period – this refers to the total amount of time (in years) throughout which the insurance policy will pay out benefits.
• Daily maximum benefit – refers to the maximum dollar amount an LTC policy will reimburse you for each day when you receive care.
• Elimination period – an elimination period is the length of time between when you start receiving care and when the policy starts paying for that care.
• Inflation protection – when selected, this policy feature ensures that the benefit dollars you receive should you need long-term care in the future are adjusted for inflation.

→ Sample premium calculations

LTC Tree insurance specialists calculated the average premium cost for males, females, and couples seeking to purchase LTC insurance at the age of 50 to 65 years (at intervals of 5 years).These sample premium calculations assume that the policy applicant selects an elimination period of 90 days, a daily maximum benefit of $200, and a benefit period of 3 years.

→ At Age 50

Single Male, Age 50, pays $1894 annually

Single Female, Age 50, will pay $2,277

Couple, each age 50, pays a combined $3,291 annually

→ At Age 55

Single Male, Age 55, pays $1,967 annually

Single Female, Age 55, will pay $2,381

Couple, each age 55, pays a combined $3,308 annually

→ At Age 60

Single Male, Age 60, pays $2,070 annually

Single Female, Age 60, will pay $2,963

Couple, each age 60, pays a combined $3,390 annually

→ At Age 65

Single Male, Age 65, pays $2,627 annually

Single Female, Age 65, will pay $3,921

Couple, each age 65, pays a combined $4,453 annually

Note: 

• premium rates increase as you get older, regardless of gender
• Long term care insurance is also more expensive for women in every age bracket
• Couples can benefit from huge discounts by purchasing their long term care insurance jointly