TX Average daily benefit purchased: $ 142 per day.

The state of Texas has a population of about 26,000,000 people.  This large number of people make Texas one of the largest users of Long Term Care services. This includes care in Nursing Homes, Assisted Living Facilities and Home Health Care.  The US Census data shows, Texas has around 2.7 million people 65 years and up. This high number of seniors in the Lone Star State will increasingly need and use Long Term Care putting stress on families as well as public and private finances. In 2011 the total Long Term Care expenses in Texas was $11.2 billion.

The Texas Long Term Care Partnership program became effective in 2009.  In summary, the Texas Long Term Care Insurance Partnership program is a joint partnership between the state’s Medicaid program and the insurance companies.  It was designed to give Texans an incentive to buy a Long Term Care Insurance policy and in the event a person needs care for a long period of time (usually 5+ years) their assets would be protected.

Long Term Care Insurance is an important retirement planning tool, and Texans have the choice of 13 great Long Term Care Insurance companies that can help protect their savings in the event they need Long Term Care services.

More on Texas

The state of Texas, like many states, has instituted The Texas Long Term Care Insurance Partnership program to tackle the problem of lack of Long Term Care Insurance coverage for its residents.  This “crisis” in long-term care is a national phenomenon, however, and not specific to Texas.  LTC Tree can provided you all of the information residents of Texas need to educate themselves about long-term care and prepare or “own” their future.  Texas’s population is aging 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.

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 crisis.

Americans 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.  And, as the Texas site points out, “It is not just for the elderly, and it isn’t just about nursing homes. It’s about having the assistance you need during an extended illness or injury at any time of life.”

Residents of Texas are able to assess their need and create their plan tailored to their needs in the Texas Long Term Care Partnership Program which is public-private partnership that offers individuals quality, affordable long-term care insurance and a way to receive needed care without depleting all their assets.  Texas, like many states, aims to reward those who do their part in solving this “crisis” of Long Term Care Insurance by planning ahead, protecting themselves and their assets and “owning their future”. Basically, it works like this: purchasers of partnership policies are eligible for Medicaid asset protection which means that “having a Texas Long-Term Care Partnership-qualified policy can help preserve some of the financial security you worked your whole life to build. That’s because for every dollar that a Partnership-qualified policy pays out in benefits, a dollar of your financial resources will be set aside when determining if you qualify for Medicaid.”  This enables partnership policyholders 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 resource protection.
• Preserve some of your financial security.

This feature is only available on Partnership-qualified long-term care insurance policies. Inflation protection is required if you are under 75 with most plans to ensure partnership status and make sure your coverage keeps up with rising costs.  Tax qualification.  You may be able to deduct part of your premiums from your taxes as a medical expense. Find out.  State-to-state coverage  Considering retiring in another state? See if you could receive resource protection if you needed to apply for Medicaid assistance in your new home state.

To purchase a policy in the Texas Long-term Care Partnership program contact us here at LTC Tree.  You can start planning today for your future long-term care needs and securing all that you’ve worked so hard to achieve for your retirement by purchasing a Long Term Care Insurance policy.  LTC Tree can assist you in finding a plan through the Texas Long Term Care Partnership Program that is right for you, no matter your age or financial status.

Texas Long Term Care Costs

The Texas median cost of care for a private nursing home is about $78,000 annually (as of 2018). Your particular long term care cost will vary depending on where you receive the care, as well as the region you’re in.

Here’s a projection of Texas long term care costs in 2018, based on a Genworth Survey

Texas Long Term Care Premium Costs

Long term care premium costs in Texas vary based on the kind of coverage you select. Your premium will also be influenced by factors such as your age, health, elimination period, and the length of time through which you need coverage.

Sample premium calculations for Texas Citizens

→ 50 years old male

Let’s take a 50 year old male from the Houston area. Based on 2018 data by Genworth Financial, the average daily cost of care at a private nursing home room in this area was $230. Assuming that the policyholder elects to receive daily benefits of $225 over a benefit period of 2 years, and selecting an elimination period of 90 days, then the annual premium contribution rate will be $1,747.

For a woman of the same age, under the same policy parameters, the annual premium amount would be $2212.

→ 55 year old female

A woman who is aged 55 years old looking to receive daily benefits of $225 over a 4 year period under a 90-day elimination period, the premium annual premium amount would be $3,156.

For a Houston man of the same age under the same policy conditions, the required annual premium amount would be $2445.

→ Couple (each 60 years old)

Let’s take a man and his wife, each aged 60 years old and living in the Houston area. Assuming they’re looking for daily maximum benefits of $225 (each) over a 4 year benefit period, after a 90-day elimination period, then they would need to contribute premium amounts of $2,250 (for each person). If they purchased the same policy separately, the man would need to contribute $2,664 in annual premiums, while the woman would require $4,079. So by purchasing the policy as a couple, they get a huge spouse discount and save over $2,243 in premium costs each year.

→ 65 year old male

To purchase a policy that offers a daily maximum benefit of $225 under a 4 year benefit multiplier and a 90-day elimination period, a 65 year old Houston man would need to contribute an annual premium of $3,528. The annual premium cost for a female of the same age (under the same policy conditions) would be $5,507.